The relationship between foot traffic and commercial land prices

Abstract

Foot traffic data allow business operators and government officials to assess the degree of pedestrian activity on a street and thus play an important role in optimizing retail strategies and enhancing urban planning. This study uses foot traffic data from Seoul and its surrounding regions to examine the relationship between foot traffic and land prices. Three study areas were selected and investigated using spatial regression models. The results showed that the interplay between foot traffic and land prices was influenced by geographical location. While a linear association between the two variables was found in one study area, diminishing returns to scale of land prices to foot traffic were identified in the other two. This nonlinear relationship can be attributed to the mismatch between land-use intensity and zoning. These findings are expected to provide insights for stakeholders in various industries, including property valuation, urban planning, and real estate development.