Researcher: Kola Ijasan, University of the Witwatersrand, Johannesburg
Supervisor: Dr Babatunde Oluwayomi, University of the Witwatersrand, Johannesburg
Increase in Land Value – conventional urban land economics theories argue that transportation costs are a major element in land value. The availability of transportation infrastructure such as motorways or train lines will dramatically increase access to services, jobs, and amenities. According to Du and Mulley (2006), with businesses centred in particular areas and residences in another, decreasing transportation costs becomes a determining factor in the choice and demand for residential houses; and hence their value.
Demand and Supply – There is a two-way link between transportation infrastructure and land value. There are two types of relationships: demand driven and supply driven. The supply-driven relationship states that the provision of additional transportation infrastructure will result in increased land value surrounding the enabled infrastructure. According to the demand-driven relationship, an increase in land value leads to the provision of additional transportation infrastructure.
