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

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