The Impacts of Gasoline Stations on Residential Proeprty Values: A Case Study in Xuancheng, China

Abstract

In this paper, we examine the effect of gasoline stations on residential multifamily housing prices in Xuancheng, China. First, a survey examining beliefs and the Not in My Backyard (NIMBY) issues associated with gasoline stations investigated the public attitude toward the impact of gasoline stations. The results show that, although the gasoline stations have adopted advanced safety management, 86% of people believe that they will decrease nearby housing prices. Second, in March and April 2016, a hedonic pricing model was used to measure the impact of gas stations on the sales’ prices of 601 residential units in 22 multifamily neighborhoods that are up to 1,000 meters from the gas stations. The results show that housing prices increase significantly with every additional kilometer from the nearest gasoline station, and the closer to the gasoline station that the house is, the more negative the impact on the housing price. The closest 100-meter band showed almost a 16% reduction in housing price, and the furthest affected band (301–600 meters) was down by almost 9%. The negative effect was not observed at distances beyond 600 meters.