Identifying spatiotemporally-varying effects of a newly built subway line on land price: Difference and correlation between commercial and residential uses

This study examines the spatiotemporal relationship between the newly built subway line and land price, focusing on difference and correlation between commercial and residential land uses. For a spatiotemporally sensitive analysis, Geographically and Temporally Weighted Regression (GTWR) method is used to test land price data in Daejeon, South Korea. A new approach is suggested in the bandwidth selection process of GTWR to consider the interactive relationship between commercial and residential land uses. With the proposed approach, this study develops models to measure the effects of a newly built subway line on commercial and residential land prices. The estimates of the models indicate that commercial and residential land uses have an interactive relationship, and the effects from the nearby environments indicate geographically and also temporally different patterns for each land use. The distribution of coefficients shows that the effect size is greater on the commercial land price than on the residential land price. However, the geographical effect is wider on the commercial land price, while the temporal effect is longer on the residential land price. This study provides a novel perspective on empirical research about the effects of newly built public transit on land prices. Furthermore, the results imply that land price estimation needs to consider the mutual relationship between land uses and to be differentiated by the type of land use.