Impact of Urban Rapid Transit on Residential Property Values An Empirical Analysis of the Shanghai Housing Market

Using Shanghai rapid transit line 8 as an example and hedonic price models, this article explores the impact of urban rapid transit on house prices. It is concluded that the urban rapid transit has a significant incremental effect on prices of houses located within 1.5 km terms of a station. However, each station has a different impact in both range and intensity. In addition, house prices increase most rapidly in years when the rapid transit system starts to build its operation and decrease slightly in the middle of construction.