Are the Effects of Opening New Mass Rapid Transit Segments in Taiwan on Nearby Housing Prices Positive?
Are the Effects of Opening New Mass Rapid Transit Segments in Taiwan on Nearby Housing Prices Positive?

Summary/Abstract: This study evaluates the effects of opening new segments of mass rapid transit (MRT) lineson housing prices near the MRT stations in Tucheng District and Xinzhuang District, New TaipeiCity, Taiwan. The effect of proximity to each MRT station is estimated separately with differencein-differences regressions integrated with spatial econometrics with heteroscedasticity-robuststandard errors. The opening of the new segment of the Blue Line, also known as BannanLine of the Taipei Metro, does not significantly influence housing prices within 600-metreroad network distance of the MRT stations, compared to prices outside the distance range.In contrast, and also unlike the findings of prior studies, although the segment and the stationsare underground structures, the opening of the new segment of the Orange Line, also knownas the Zhonghe-Xinlu Line of the Taipei Metro, significantly decreases housing prices within600-metre road network distance of the MRT stations, compared to prices outside the distancerange, perhaps because the opening of the stations is delayed about one and a half years to beused as a temporary storage area for MRT trains. The findings have implications for homebuyers,investors, mortgage lending institutions and tax assessment authorities.

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