Time-dependent associations between accessibility to tram stops, proximity to tram tracks, and property prices: From construction to operation

Abstract

Research on how accessibility to tram stops and proximity to tram tracks affect property prices has been limited. Additionally, the time-dependent effects of the tram system and its effects at different price levels remain underexplored. This study fills these gaps by analyzing the relationship between Chengdu Tram Line 2 and nearby property prices. Using a before-and-after treatment-control design and a dataset of 33,150 property transactions over six years, it applies multilevel hedonic price, difference-in-differences (DID), and quantile regression models to investigate the association between accessibility to tram stops, proximity to tram tracks, and property prices during various phases (e.g., construction and operation phases). Our findings are listed below. First, the positive influence of accessibility to tram stops only becomes significant during the operation phase. Specifically, property prices within 800 m of tram stops are 1.4 % higher than those farther away. Second, price penalties induced by proximity to tram tracks persist throughout the construction and operation phases. Third, the impact of accessibility to tram stops varies significantly across different price levels. Specifically, buyers of low-priced properties are more willing to pay a premium for accessibility to tram stops, whereas purchasers of high-end properties prefer greater distances from tram tracks to avoid nuisances. The results highlight the time-dependent accessibility benefits and negative externalities linked to tram services. Finally, policy implications, such as measures to alleviate the disturbances caused by tram tracks, are discussed.