Method

Transport Policy 18 (2011) 102–116

Contents lists available at ScienceDirect

Transport Policy

journal homepage: www.elsevier.com/locate/tranpol

Bus rapid transit impacts on land uses and land values in Seoul, Korea

Robert Cervero a,n, Chang Deok Kang b

a

b

Department of City and Regional Planning, MC 1850, 228 Wurster Hall, University of California, Berkeley 94720-1850, CA, USA

University of Seoul, South Korea

a r t i c l e in f o

a b s t r a c t

Available online 23 July 2010

Bus rapid transit (BRT) has gained popularity as a cost-effective alternative to urban rail investments;

however, relatively little is known about its impacts on land-use changes and land values. This paper

examines the land-market effects of converting regular bus operations to median-lane bus services in

Seoul, Korea, one of the densest, most congested cities in the world. Multilevel models reveal BRT

improvements prompted property owners to convert single-family residences to higher density

apartments and condominiums. Land price premiums of up to 10% were estimated for residences

within 300 m of BRT stops and more than 25% for retail and other non-residential uses over a smaller

impact zone of 150 m. The research findings underscore the importance of introducing zoning and other

land regulatory changes prior to the initiation of BRT improvements as well as applying value-capture

tools to help finance investments and redress inequities.

& 2010 Elsevier Ltd. All rights reserved.

Keywords:

Bus rapid transit

Land use

Capitalization

Hedonic price models

Multilevel models

Land-use planning

Value capture

1. Introduction

More and more cities are turning to bus rapid transit (BRT) as a

way of cost-effectively expanding public transit services to relieve

traffic congestion, reduce carbon emissions, and increase mobility

options for the poor. Because of the inherent flexibility advantages of rubber-tire buses – e.g., unlike rail systems, the same...