The effects of mass rapid transit station on the house prices in Taipei: the hierarchical linear model of individual growth

Abstract

A number of studies have examined the impact of mass rapid transit (MRT) systems, especially the transit station, on house prices, and the conclusions vary. While most studies focused on the analysis at an aggregate level, this paper develops a hierarchical hedonic price model of individual growth to investigate the effects of real estate’s proximity to the train stations, together with other house/neighborhood-specific characteristics, on the longitudinal growth pattern of house prices in Great Taipei. Sample houses are those located within a radius of one kilometer from selected MRT stations. The empirical results show that: (1) the growth pattern of housing price in real terms over time is significantly upward; (2) the city in which the house is located and the type of building positively moderate such growth trajectory; and (3) the influences of both the distance to MRT on house prices and on the growth pattern of house prices are insignificant. Discussion and implications of these findings were provided.