The impact of urban renewal on neighborhood housing
prices in Taipei: an application of the difference-in-
Received: 12 April 2015 / Accepted: 21 May 2016 / Published online: 28 May 2016
Ó Springer Science+Business Media Dordrecht 2016
Abstract This study examined the impact of urban renewal delineation time on housing
prices in neighborhoods undergoing urban renewal. More speciﬁcally, the study used the
difference-in-difference method to assess successful housing transactions in Taipei City
from 2008 to 2011. According to the empirical results, before the implementation of urban
renewal, the average housing price in the areas that later underwent urban renewal (the
treatment group) was lower than that in neighborhoods that did not undergo urban renewal
(the control group) by 11,180 NTD. After the urban renewal projects were publicly
announced, the price per ping of the control group was increased by 148,800 NTD, while
the price per ping of the treatment group was increased by 163,680 NTD. This means that
the housing prices per ping in the urban renewal areas were increased by 14,880 NTD more
than the housing prices per ping in the areas not affected by urban renewal after the urban
renewal projects were publicly announced. This increase, then, indicates the value added
after implementation of urban renewal delineation time on houses in the neighborhood.
Therefore, research into the impact of urban renewal on housing prices should be con-
cerned not only with the neighborhood factors or time factors of urban renewal delineation.
Rather, the two types of factors should be considered at the same time.
Keywords Urban renewal Á Housing prices Á Urban renewal delineation time Á Difference-
& Chun-chang Lee
Department of Real Estate Management, National Pingtung University, No. 51, Mingsheng East
Road, Pingtung, Taiwan, ROC
Department of Public Finance and Tax Administration, National Taipei University of Business, No.
321, Sec. 1, Jinan Rd., Zhongzheng District, Taipei City, Taiwan, ROC
J Hous and the Built Environ (2017) 32:407–428