Highway traffic noise effects on land price in an urban area

The study evaluates the monetary effect of traffic noise on property values in Seoul, Korea. Hedonic price models are estimated using the zone-based data that includes traffic noise levels, official land price, land use classification, distance to roadways, type of nearby roadway facilities, and traffic characteristics. It is found that a 1% increase in traffic noise associated with a 1.3% decline in land price. Based on this, the annual cost per kilometer due to traffic noise is about $347 thousand.