This research investigates the capitalization effects of proximity to rail transit and BRT in fast growing Beijing. Few related studies have been conducted for Chinese cities because the real estate market was not established until recently. Data were collected on apartment homes sold in the Beijing metropolitan area during 2011, and hedonic price modelling was employed to gauge the price premiums or discounts associated with proximity to transit stations. Overall, we identified an average price premium of around 5% for properties near rail transit stations, but no statistically significant effects are detected at BRT station areas. Moreover, we found that station proximity effects increase both in magnitude and spatial extent at stations further away from the city centre and at stations surrounded by low- and middle-income neighbourhoods; for example, the price premium is as high as 10% in some suburban and low-income station areas. We concluded that rail transit investment is an effective strategy for Beijing to reshape its urban spatial structure, and local governments in China may consider a Rail + Property Development model as a future financing solution for rail transit investment. This study contributes to the evidence of capitalization effects of public transit from a booming and transitional economy.