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

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 es...

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Main Authors: Muhammad Abdulazeez Adam, Burhan Burhaida Binti Haji, Safian Edie Ezwan Bin Mohammad
Format: Article
Language:English
Published: Sciendo 2024-09-01
Series:Real Estate Management and Valuation
Subjects:
Online Access:https://doi.org/10.2478/remav-2024-0022
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author Muhammad Abdulazeez Adam
Burhan Burhaida Binti Haji
Safian Edie Ezwan Bin Mohammad
author_facet Muhammad Abdulazeez Adam
Burhan Burhaida Binti Haji
Safian Edie Ezwan Bin Mohammad
author_sort Muhammad Abdulazeez Adam
collection DOAJ
description 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.
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spelling doaj-art-a121e3dd87de49d4a04afbe3ed395e572025-01-02T06:05:50ZengSciendoReal Estate Management and Valuation2300-52892024-09-01323203010.2478/remav-2024-0022Price Model for Transit-Oriented Developments in Kuala Lumpur, MalaysiaMuhammad Abdulazeez Adam0Burhan Burhaida Binti Haji1Safian Edie Ezwan Bin Mohammad21Department of Real Estate and Facilities Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, Malaysia1Department of Real Estate and Facilities Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, Malaysia1Department of Real Estate and Facilities Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, MalaysiaThe 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.https://doi.org/10.2478/remav-2024-0022transit oriented developmentmixed-used centersrail transithedonic price modelr32
spellingShingle Muhammad Abdulazeez Adam
Burhan Burhaida Binti Haji
Safian Edie Ezwan Bin Mohammad
Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia
Real Estate Management and Valuation
transit oriented development
mixed-used centers
rail transit
hedonic price model
r32
title Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia
title_full Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia
title_fullStr Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia
title_full_unstemmed Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia
title_short Price Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia
title_sort price model for transit oriented developments in kuala lumpur malaysia
topic transit oriented development
mixed-used centers
rail transit
hedonic price model
r32
url https://doi.org/10.2478/remav-2024-0022
work_keys_str_mv AT muhammadabdulazeezadam pricemodelfortransitorienteddevelopmentsinkualalumpurmalaysia
AT burhanburhaidabintihaji pricemodelfortransitorienteddevelopmentsinkualalumpurmalaysia
AT safianedieezwanbinmohammad pricemodelfortransitorienteddevelopmentsinkualalumpurmalaysia