The effects of subway operation for commercial land values: A case study in Daejeon, South Korea

The introduction of subways has a significant impact on surrounding land values due to increased floating population and improved accessibility. Many studies have sought to determine this change in the land value caused by subway operations. To overcome the limitations of the existing analysis, this study uses i) commercial land value, ii) a multilevel mixed-effects model, and iii) continuous yearly data before and after subway introduction. The study confirms that the land value changed significantly before and after the subway operation. The impact is larger in closer regions, and the rate of price reduction given a 1 m increase in distance to stations is greater. According to this study, the ability to more accurately estimate the indirect effects of introducing subways, such as fluctuations in land values, could contribute to the efficient distribution of transportation infrastructure funding and construction.