Differential impacts of urban revitalization projects on land prices: A case study of Seongnam, South Korea

This study investigates the varied effects of urban revitalization projects on land prices in Seongnam, South Korea. As rapid urbanization continues to be a global challenge, the economic impacts of different urban revitalization strategies hold crucial importance in informed urban planning and policymaking. This study uses a spatial hedonic approach to analyze the influence of distinct urban renewal and regeneration initiatives on land values. The results reveal that the urban renewal project, which involves significant physical upgrades and redevelopment, appears to substantially increase land prices. However, a deeper analysis accounting for spatial spillover effects indicates that most of this increase is due to the influence of high-value adjacent areas. Conversely, urban regeneration projects, which focus on enhancing the socioeconomic and cultural aspects of urban areas without causing drastic physical changes, consistently have a significant positive impact on land prices, even when spatial structures are considered. This study underscores that urban planners and policymakers should carefully evaluate the type of urban revitalization strategy to be implemented and its contextual spatial effects. The findings suggest that urban regeneration can be a more effective tool than urban renewal for sustainable urban improvement, contributing to enhanced land utility and neighborhood development. These insights are particularly valuable for cities in developed and developing countries facing similar urban challenges.