Does high-speed rail accessibility influence residential property prices? Hedonic estimates from southern Taiwan

A new high-speed railway line (HSR) connects seven metropolitan areas in Taiwan. From Tainan, it is possible to reach Kaohsiung, Chiayi and Taichung in less than one hour, implying an enlarged spatial range of feasible commuting opportunities. The implicit price of HSR accessibility is estimated using hedonic price functions for the residential property market. The results of pre-specified and Box-Cox hedonic price functions are compared. The estimated functions show that HSR accessibility has at most a minor effect on house prices. High ticket prices and entrenched residential location patterns prevent otherwise feasible daily commuting opportunities between Tainan and other cities.