Discriminant Impact of Transit Station Location on Office Rent and Land Value in Seoul: An Application of Spatial Econometrics

This study examines 731 office properties in Seoul, Korea to determine discriminant impact on office rentals and land values by a transit station's location in the city. Value premiums from better accessibility to stations seem to exist; but they decay with increasing distance from centres and correlate with the development densities of station areas. Research sampled heavily from suburbs may not find the same station benefits as in the denser inner city. Also, this study expands its estimation model to contain errors as well as dependent variables, reducing the spatial autocorrelation and thereby producing a more efficient estimate for transit's impact. © 2007 LSE and the University of Bath