A Hedonic Analysis of the Effects of Transport Accessibility on Flat Prices in Hong Kong

26 Pages Posted: 22 Aug 2008

See all articles by John L. Glascock

John L. Glascock

University of Connecticut - School of Business - Center for Real Estate and Urban Economic Studies; European Business School

Lei Feng

Renmin University of China

Yingmei Liu

University of Cambridge

Helen X. H. Bao

University of Cambridge - Department of Land Economy

Date Written: August 20, 2008

Abstract

This research analyses the effect of public transport accessibility on the prices of flats in Hong Kong. In order to correctly identify the impact of transport convenience, we estimate regression models by regions in bear and bull markets separately. In addition, we consider the standard pricing variables such as age of the building, floor area of the flat, location in the city, and nearness to amenities. The results suggest that transport accessibility is strongly associated with value of a flat. The flats that are within walking distance of the subway station are significantly more expensive than those out of the walking distance; access to ferry stations is preferred except in the New Territories district; being close to bus stations is considered as a disadvantage, probably due to the noise associated with the traffic. These effects are stronger during bull market period. It seems that in 'wealthier' periods, convenience and the quality of living environment are more important.

Note: The downloadable document is in English, followed by Chinese.

Keywords: House prices, Amenities, Subway, Transportation, Accessibility, Hong Kong

JEL Classification: R31, R21, C20

Suggested Citation

Glascock, John L. and Feng, Lei and Liu, Yingmei and Bao, Helen X. H., A Hedonic Analysis of the Effects of Transport Accessibility on Flat Prices in Hong Kong (August 20, 2008). Available at SSRN: https://ssrn.com/abstract=1241502 or http://dx.doi.org/10.2139/ssrn.1241502

John L. Glascock

University of Connecticut - School of Business - Center for Real Estate and Urban Economic Studies ( email )

Storrs, CT 06269
United States

European Business School ( email )

Gustav-Stresemann-Ring 3
Wiesbaden, Hessen 65189
Germany

Lei Feng

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

Yingmei Liu

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Helen X. H. Bao (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
194
rank
150,691
Abstract Views
1,055
PlumX Metrics