Analysis of property prices before and after the opening of the Taipei subway system

Abstract.

Since the development of Taipei subway system, which represented a new type of infrastructure in Taiwan, various studies have conducted with-and-without comparisons before the opening of the subway systems. However, this study compared property prices before and after the opening of the Taipei subway system. Samples along the subway red line were selected and investigated for two periods: 1993–1995 AC. (before subway opening) and 1997–1999AC. (after subway opening ). The samples were analyzed using multiple regression, Chow test, and fuzzy regression. Based on the empirical analysis, the following conclusions can be reached: First, subway opening significantly influences hedonic prices of floor space, building age, and distance from public facilities (schools or parks). Second, the influences of subway system opening on hedonic price varies significantly according to different submarkets such as subway construction , location in city, position of property relative to subway stations, land use zoning, and building type. Third, both traditional regression and Tanaka et al. (1980) fuzzy regression are useful, but generally, traditional regression is more persuasive than the other regression in analyzing hedonic prices. The analysis abilities of other fuzzy regression methods still need to be explored.