In urban planning, TOD (Transit-Oriented Development) is an important concept that refers to a development model guided by public transportation. Its purpose is to layout the main functional areas of a city around transit stations to reduce the use of private vehicles. Therefore, it is also known as “integrated station-city development.”
Jiang Yang suggests that urban development should follow the TOD concept. Firstly, the development of rail transportation should align with the overall direction of the city’s growth. Secondly, the construction of rail transportation should be coordinated with the development of surrounding plots of land, aiming for a simultaneous progress of “building tracks while developing” to ensure the rapid aggregation of passenger flows after the rail is opened, creating a harmonious integration of “station” and “city.”
If planning a subway in the suburbs, a proven market mechanism is to attract pedestrian flows first by constructing residential buildings or rental housing. Then, with a slight delay, develop the rail transportation facilities. Utilizing the potential for station area renewal can create new cities with balanced residential and employment areas, bringing higher revenue to the local land finance.
The Gao Yi Kou Station on Chongqing Metro Line 6 is an example of this approach. The rental prices within an 800-meter radius of the station are 2.09 times higher than those within an 800-1500-meter radius, demonstrating a clear land premium effect. The reason behind this is that the station is located in the core area of the “Yuelai Ecological City,” one of the first batches of national green and ecological demonstration areas. The area is implementing a small-block planning with “narrow roads and dense road networks” and constructing all buildings according to green building standards. In addition to residential areas, three commercial business plots have been planned to provide job opportunities.