Estimating the Effects of Light Rail Transit (LRT) System on the Property Values in the Klang Valley, Malaysia: A Hedonic House Price Approach

Abstract

This study investigates the increased value of land in the form of house prices as a result of improved accessibility owing to the construction of Light Rail Transit (LRT) systems. Kelana Jaya Line LRT system is chosen as the case study in this research. Hedonic house price modelling is employed to estimate the effects of the LRT system on the prices of the house that are located within the radius of two kilometres from the Kelana Jaya LRT stations. Selling prices, structural attributes, land use and socio-economic attributes were collected from the database of Department of Valuation and Services of Malaysia, selected maps and reports. Fifty-five factors that are likely to influence a house price were identified and used to estimate the overall effects of the LRT system on it. However, only significant variables were included in the final deliberation and these were identified by using correlation analysis and modified step-wise procedures. The outcome of this study shows a positive relationship between the existence of the LRT system and house prices. In other words, properties that are located within close proximity to the LRT station are valued more than properties that are located further away. Keywords: Light rail transit systems (LRT); property values; hedonic price model; Klang Valley AbstrakKajian ini menyiasat peningkatan nilai tanah dalam bentuk harga rumah hasil daripada peningkatan ketersampaian menerusi pembinaan sistem Transit Aliran Ringan (TAR). Sistem TAR laluan Kelana Jaya dipilih sebagai kajian kes dalam penyelidikan ini. Model harga rumah hedonik digunakan untuk menganggarkan kesan sistem TAR pada harga rumah yang terletak dalam lingkungan dua kilometer dari stesen TAR Kelana Jaya. Harga jualan, ciri-ciri fizikal rumah, lokasi dan sosio-ekonomi dikumpul daripada pangkalan data Jabatan Penilaian dan Perkhidmatan Malaysia, peta terpilih dan laporan. Lima puluh lima faktor yang mungkin mempengaruhi harga rumah telah dikenal pasti dan digunakan bagi menganggarkan kesan keseluruhan sistem TAR di atasnya. Walau bagaimanapun, hanya pemboleh ubah yang signifikan secara statistik telah dimasukkan dalam perbincangan akhir dan ini telah dikenal pasti dengan menggunakan analisis korelasi dan prosedur 'step-wise' yang telah diubah suai. Hasil kajian ini menunjukkan terdapat hubungan positif antara kewujudan sistem TAR dan harga rumah. Dalam erti kata lain, hartanah yang terletak dalam jarak yang hampir dengan stesen TAR mempunyai nilai yang lebih tinggi berbanding hartanah yang terletak jauh.Kata kunci: Sistem transit aliran ringan (TAR); nilai hartanah; model harga hedonik; Lembah Klang

Hedonic Pricing Model for Real Property Valuation via GIS - A Review

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Hedonic Price Function for Residential Area Focusing on the Reasons for Residential Preferences in Japanese Metropolitan Areas

“…Syabri (2011) grasped the influence of railway stations on residential property values in Indonesia using a spatial hedonic approach. Dziauddina et al (2013) investigated the increased land value (in the form of house prices) as a result of improved accessibility owing to the construction of Light Rail Transit (LRT) systems in Klang Valley, Malaysia. With the network accessibility indicator proposed in Jang et al (2000) as a reference, the present study will propose "accessibility to destination stations" as a new indicator that quantitatively evaluates the convenience of each station.…”

Aplicação da teoria de preços hedônicos para avaliação da influência da caminhabilidade no preço de venda de imóveis residenciais

“…Alguns pesquisadores já buscaram identi"icar a contribuição e cada uma dessas dimensões na valorização de imóveis comercializados. São elas: densidade (W. Li et al, 2014), diversidade (Shen e Karimi, 2017;Song e Knaap, 2004), desenho urbano, acessibilidade ao destino e distância ao transporte público (Cervero e Kang, 2011;Dziauddin et al, 2013;Munoz-Raskin, 2010;Rodriguez e Mojica, 2009). Alguns estudos ainda incluem a administração da demanda por viagem como uma sexta dimensão.…”