Analyze of Submarket Effect of the Influence of Rail Transit on Nearby Housing Prices：The Case Study of No.1 Line in Wuhan

The submarket effect of rail transit on surrounding property value increment is analyzed quantitatively based on the investigation of Wuhan Metro Line one using hedonic price model. The results show as follows: (1) The submarket effect of the rail transit influencing on nearby housing prices is significant. Within a radius of 400 meters, the growth rate of the surrounding housing prices in phase 1 of the metro project is more than that in phase 2, whereas the growth rate of property value in phase 2 is more than that in phase 1 beyond a radius of 400 meters. (2) The spatial effect of the influence of rail transit on nearby housing prices is different. The property value increment within a radius of 100 meters reaches the summit in phase 1 of Metro Line one (the central city), and the property value increment between a radius of 300 meters and 400 meters is the biggest in phase 2 (suburbs). (3)The surrounding housing prices are largely influenced by the rail transit operation rather than construction. The construction and operation of the Metro Line one in phase 2 bring more impacts on the surrounding housing prices in phase 1 (the central city) than those in phase 2 (suburbs).