Understanding the impact of Bus Rapid Transit (BRT) on property values - a case study of Brisbane, Australia

Abstract

Investment in public transportation is an essential solution to reduce car traffic and improve transport sustainability in a high-speed urbanised context. In an age of global fiscal restraint, the re-emergence of a bus-based transport mode, Bus Rapid Transit (BRT), has generated great interest from urban planners and governments, since it provides high quality transit services, with less expenditure and flexibility advantages compared with other modes. On the other hand, researchers and practitioners have shown interest in the value BRT can add to urban real estate prices, since Land Value Capture (LVC) is increasingly seen as a potential way to finance transport projects.However, the extent to which the improved accessibility due to BRT can be capitalised into property values (and therefore underlying land value) remains controversial and has not been studied comprehensively. This research provides an enhanced understanding of BRT’s impact on property values, by drawing on the BRT system in Brisbane, Australia.This thesis documents the first meta-analysis of 23 empirical studies that estimate the amount of land value uplift (LVU) that is attributable to BRT. The results identified several factors that were found to have a statistically significant impact on estimated LVU from BRT investment, including the BRT system life cycle maturity, the geographical location, the type of research area (land or property), the reported value (sale /rental /assessor price), the distance to the BRT station and the method used for analysis.This research contributes to the literature by adding the evidence of BRT impact from the city with low density, high car ownership and limited variation in socio-economic status, as in the country context of Australia, using the South East Busway (SEB) in Brisbane, as a case study. The results show there is a positive effect of access to SEB stations, but a more substantial negative effect of immediate proximity to the SEB corridor. The area with the strongest value-added effect is approximately 1600m to the BRT corridor, which demonstrates the convenient feeder line services in the open-system SEB network and the Park-and-Ride services available in BRT stations could contribute to a wider appreciation area of SEB accessibility.Few relevant studies in this field consider that a BRT operation mechanism could impact the capitalisation effect. To better understand BRT operation, this research employs a visual analytic approach to determine how Brisbane’s open-system BRT facilitates daily mobility, based on smartcard data. Web Graphics Library (WebGL) techniques are employed to produce 3D web maps that visualise the trajectories of all the BRT passengers, to provide an overview of catchment areas and passenger volumes. The results show that feeder line stops are important for increasing network accessibility for Brisbane’s open-system BRT. This validates that feeder line stops should be considered when examining the BRT property value impacts.A hypothesis is then formulated that the improved accessibility, due to an open-system BRT network, results in higher property values within feeder line catchment areas. Feeder line stops were selected and included as part of the open-system BRT, based on analysis of smartcard data. A Geographically Weighted Generalized Linear Model (GWGLM) was used to examine the property values impacts. The results identified property value uplift of up to 1.64% for every 100m closer to feeder bus stops with frequent services in western and eastern Brisbane suburbs, which confirms the hypothesis.This research contributes to the literature relating to the method of predicting property value uplift for future infrastructure. Although many LVU studies have been motivated by LVC implementation, current studies are less than helpful for practical LVC implementation as there is a knowledge gap in how to estimate the LVU prior to the transport project. This is important as a pre-investment reference to formulate LVC strategies. The prediction method proposed in this study has the potential for broader application in prediction of property value uplift from future infrastructure across other urban planning contexts.In summary, this research contributes to an understanding of the impact of BRT on property values and it is also significant in advancing the practice of LVC strategy for raising public transport funding through land and property value gains.