Valuing Spatial Access to Types of Retail and Effects on the Housing Price in Seoul, Korea

Abstract

The debate over the effects of retail on neighborhoods attracts considerable attention in urban development, land-use planning, and urban design. Particularly, two conflicting theories provide empirical evidence on the positive or negative effects of commercial property on the housing price. Notably, most empirical studies relevant to these theories miss two critical factors, namely, street configuration and types of retail. Thus, this study tests how spatial access to different types of retail affects the housing price within walkable neighborhoods by concurrently considering street configuration and the floor areas of retail types. The empirical models of this study show that access and relative location to local and regional retail stores along streets generate either a housing premium or discount across different neighborhood scales. Specifically, the spatial trade-off between the effects of proximity and disamenity depends on the value residents attach to access different retail types along specific street network configurations.