Commuter trains effect on property prices: hedonic pricing method applied in Malmo

Sammanfattning

Studies have found that residents are more inclined to live near a public central station due to its lower commuter costs. Thereby, it was exhibited a negative correlation between distance and stations on tenant- ownerships and this may govern prices within cities across the world. The four biggest railway stations within Malmo region are namely: Hylie station, Malmo central station, Triangel station and Rosengord station. Existing studies have not elucidated that effects can differ in terms of differential market segments; therefore, the purpose of this study is to fill in this gap and give the readers more knowledge regarding this topic. The general topic was to explore railway accessibility on tenant- ownership prices within Rosengord, Triangel and Malmo central, which are low-, middle-, and high-incomes segments respectively. Furthermore, to investigate differential effects in diverse market segments, with different scopes consisting of within 500 meters and 1 to 5 kilometers to respective railway stations (Malmo central station, Triangel station or Rosengord station). To investigate this, have we applied a hedonic pricing method in Malmo with diverse variables to demonstrate our findings and discussion part. It was found that market segment Rosengord was associated with positive correlation with distance for both scopes on prices, Triangel station showed opposite correlation for both ranges on prices and Malmo central showed positive correlation for distance within 500 to 900 meters and a negative correlation for distance beyond 5 kilometers. It was also found that larger apartments situated in Rosengord gave incentives to falling prices. Moreover, higher revenues in this neighbourhood gave inducement to falling apartment prices. Regarding Triangel, larger apartments gave incentive to increased apartment prices and the same was for larger incomes. Larger apartments in Malmo central gave inducement to increased apartment prices within 500 to 900 meters, on the other hand, higher incomes gave inducement to decreased prices beyond 5 kilometers.