Based on housing transaction data in Beijing 2005-2016, this thesis examines the impacts of car driving and purchasing restrictions on the value of subway proximity. The thesis proposes a heterogeneous framework for citywide subway capitalization studies by adding station fixed effects to the standard practice of hedonic method. Results suggest that for second-hand homes, subway proximity is a significant determinant of housing prices. The 2008 car driving restriction has increased the value of proximity for second-hand homes, but only for those within the 8km-radius of subway stations. The 2014 bi-monthly lottery restriction induces an unexpected but robust negative effect on proximity values, which probably implies that gentrification has started to take place in neighborhoods that are near subway stations.