The impact of rail transit stations on commercial real estate property values: case study of the PRASA station in Jeppestown

As cities continue to experience rapid urban growth there are opportunities which exist in linking transport planning with dynamic land uses within the city. The main planning approach which stands out in achieving this is transit-oriented development planning. This form of planning is essential as it connects people with services and employment opportunities located in cities and urban areas. Transit-oriented development of a higher quality has the potential to generate revenue which can be used to improve the quality in transit-oriented systems and ultimately boost economic growth and development. Inclusive to this statement is the idea that transit systems are associated with societal benefits; congestion relief, social equity improvement, reductions in dangerous gas emissions and economic development. This study explores the importance of TOD and especially the prescribed linkages between proximity to a railway station and the influence this has on nearby commercial property prices. The study discusses the possible effects of other amenities found around close to the commercial properties and determines. The aim being to find out if these other amenities also have an impact on commercial property values in the study area. This is done through unpacking relatable discourse associated with transit-oriented development and through a research process which investigates whether there are other factors influencing commercial property values around the railway station in Jeppestown. The study will contribute towards the broader body of literature around TOD nodes, rail transit stations and commercial property values by providing empirical evidence provided by a quantitative study. The study uses multiple regression models to determine whether commercial property values are influenced by their proximity to a railway station or by other factors. It was initially expected that proximity would have an impact on commercial property values, but at the same time there was an argument for other factors and conditions located nearby to the commercial properties having an influence too. The empirical evidence collected showed that the proximity to the railway station was not statistically significant. The determinants of commercial property value which were significant were distance to school’s property age, retail, industrial and unidentified property. The limited impact of a railway station on commercial property value has been discussed in the analysis section of this thesis. The discussion has shed some light on the gaps associated with the way in which railway stations relate to commercial real estate property values in Metropolitan cities, across the developing world and beyond. The findings of the study will contribute towards better transit oriented development policies to be formulated as well as a better understanding of how public sector investments can help create value for properties.
A Research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Development Planning, Johannesburg 2019
Mashiri, Lesley Takunda. (2019). The impact of rail transit stations on commercial real estate property values :case study of the PRASA station in Jeppestown. University of the Witwatersrand.