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Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia

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Listed:
  • Muhammad Abdulazeez Adam

    (Department of Real Estate and Facilities Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, Malaysia)

  • Burhan Burhaida Binti Haji

    (Department of Real Estate and Facilities Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, Malaysia)

  • Safian Edie Ezwan Bin Mohammad

    (Department of Real Estate and Facilities Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, Malaysia)

Abstract

The idea of Transit Oriented Development (TOD) was to foster urban development around railway networks and has been strategically built and applied since the late 19th and early 20th centuries. Previous studies reported positive, negative, or irrelevant impact of TOD on prices of surrounding real estate. The study aims to evaluate the impact of TOD on property prices in Kuala Lumpur. It utilizes secondary data obtained from the National Property Information Centre (NAPIC), Malaysia, after data cleaning, Nine Thousand Five Hundred and Forty-Nine (9549) Housing Transactions between the periods 2009 and 2018 were used. The research design was quantitative, and the Hedonic Price Model (log-log model) was used for data analysis. The model revealed a multiple correlation coefficient (R) of 0.891 and an adjusted R2 value of 0.794, indicating that 79.4% of the house price variation is explained by the model. The F value of 996.921, which is statistically significant, indicates that the predictors significantly combine to predict the price of TOD areas in Kuala Lumpur. The coefficient for LnTrainsta is 0.056, indicating that there was a positive relationship between residential house prices and TOD in Kuala Lumpur; this explains that house prices increase by 5.6% for every 100 meter closer to the rail transit station.

Suggested Citation

  • Muhammad Abdulazeez Adam & Burhan Burhaida Binti Haji & Safian Edie Ezwan Bin Mohammad, 2024. "Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia," Real Estate Management and Valuation, Sciendo, vol. 32(3), pages 20-30.
    • Handle: RePEc:vrs:remava:v:32:y:2024:i:3:p:20-30:n:1002
    DOI: 10.2478/remav-2024-0022
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    References listed on IDEAS

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    4. Jacobson, Justin & Forsyth, Ann, 2008. "Seven American TODs: Good Practices for Urban Design in Transit-Oriented Development Projects," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 1(2), pages 51-88.
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    More about this item

    Keywords

    Transit Oriented Development; mixed-used centers; rail transit; Hedonic Price Model;
    All these keywords.

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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