Impact of rail transit station proximity to commercial property prices: utilizing big data in urban real estate

Abstract

AbstractUrban transport investments have contributed to the exponential increase of value from land and properties around the built infrastructure. Although literature had shown evidence of value uplift from the residential property due to transit development, little is known about the impact on commercial property values. This paper aims to evaluate the impact of rail transit proximity to the commercial property market by taking into account the pre-operation of the LRT project in Jakarta, Indonesia. This study utilizes a big data approach to accelerate research data processing by employing data mining method, as well as geographical information system (GIS) and hedonic price modeling (HPM) to investigate the property prices to formulate empirical evidence for the research. The results show opposite evidence compared to previous studies which argued that accessibility may contribute to the property price when closer to the transit station. The findings indicate that proximity to rail transit has an insignificant impact on the commercial property price compared to other variables such as building size, number of rooms, location, and hospitals. A comparison of the findings between this research with other studies was discussed and recommendation for further research development was proposed.