Mass rapid transit (MRT) system is very important to the modern city building developments. Many developments of a city have been effected by the MRT system. This is true for the real estate market, if the residential area is nearby to the MRT system, the value of the housing rate will increase. Hence, this research will investigate the effects of a MRT system to the surrounding real estate market.
All the stations between the Longshan Temple station to the City Hall station of the Taipei MRT Bannan Line (aka. Blue Line) are investigated. This research uses each stations passenger flow, its surrounding land values and price index by the SAR literature analysis, data comparison and quantitative methods to explore the effects of the MRT system to the surrounding real estate market prices. Using this to verify Shanghai Metro’s development and discuss the development process of the surrounding real estate market.
After the analysis and summary, there are four key conclusions. Within a region, the benefits of the MRT stations will counteract each other. The prices of a commercial and residential object surrounding the MRT station reflect differently throughout the development process. After using the empirical analysis for the research, it was found that after the MRT system arose, the positive response of the commercial real estate price of the surrounding was greater than the residential type objects. This is because the MRT system also brings some negative impacts to the living environment, where the commercial real estate uses the MRT system to bring in a large number of people to increase the profitability of the type of the object and enhance its value. As a result of this phenomenon, there has been an increase in the land surrounding the MRT stations becoming commercial use and the residential objects have shifted to the outer skirts of the station.
The establishment of the MRT stations will also become suburbanized. Having the MRT in the suburbs will attract businesses to join in, emerging a new life circle surrounding the station. Therefore, promoting the surrounding’s living mobility, so people who can not afford the housing rates in the city can move to the suburbs and still have the same mobility.
Furthermore, due to the different political and economic system background between Taipei and Shanghai’s development process, the two city’s housing real estate are also different. Therefore, the lay out of the MRT system also controls the rise and fall of the housing market.