Land Value Uplift from Light Rail

Abstract

Land value gains attributable to the light rail system on the Gold Coast, Australia, are estimated. Using the full history of statutory land valuations of Gold Coast properties, a model of location-specific gains is estimated, allowing for price effects at multiple distances from stations across time. Total value gains to nearby landowners are $300 million, or 25% of the capital cost of the project, This estimate is net of automatic property tax increases of $4.8million in 2015-16. Substantial additional scope to fund transport investment from value gains is apparent.

Keywords: Land value, betterment, light rail

JEL Classification: O18, R51, H42