Evaluating the short-term effect of a new monorail-type light rail transit on apartment sale prices: Did estimation in the case of daegu city

Unlike previous cross-sectional studies on the capitalization effect of new rail transit system, this study identifies a short-term effect of the introduction of monorail-type light rail transit on apartment sale prices using panel data. Results from DID (Difference in Difference) estimation based on total 948 samples of apartment sales (between 2014 and 2016 year) within 30 stationary areas of Daegu LRT Line-3 revealed that the interaction term (time*station area) is positively associated with apartment sale prices at the statistically significant level (p<0.05). However, the magnitude of short-term effect(Beta=0.078) is relatively small, compared with Deterioration (-0.626), Households (0.101), Area of unit (-0.153), Entrance (0.234), and Urban center (-0.154). Therefore, it is concluded that the capitalization of a new transit system still exists after opening but the short-term effect size is marginal.