Spatial-Temporal Effects of Housing Price Caused by Metro Construction: A Perspective of Price-to-Rent Ratio

Abstract

Metro often affects the features and prices of the real estate along, because it can greatly save transportation cost. Taking Hangzhou Metro Line 1 and the first stage of Line 2 as a case, this paper studied spatial-temporal effects of housing price caused by metro construction from a perspective of price-to-rent ratio by using GIS and basic statistical methods. The phenomena as follows were found. Firstly, the effect of metro stations on the price-to-rent ratio within 800 m around is relatively obvious, and it’s mainly an effect of promoting the price-to-rent ratio. Secondly, the range of metro station’s effect in downtown is wider than that in suburbs, but the effect degree in suburbs is greater than that in downtown. Thirdly, the opening of metro has an obvious effect of promoting the price-to-rent ratio, and it has begun to emerge in the planning and construction stages. Fourthly, before opening and early after opening, within 800 m around metro stations, the price-to-rent ratio within the scope of 0–200 m is relatively the lowest, but over the subsequent years it will tend to be such a stable state, closer to metro stations, higher price-to-rent ratio.