Abstract
Little appears to be known about how the capitalization of transport accessibility in South Asian housing markets, which typically differ from those in industrialized countries. This study starts addressing this gap by providing empirical evidence about the nature and the magnitude of the value of accessibility as reflected by property rents in Rajshahi City, Bangladesh. Results of the SARAR spatial hedonic model estimated on 558 observations collected via in-person interviews conducted in June of 2006 indicate that the rent of a multi-unit dwelling decreases by 0.021% for every 1% increase in network access distance (NAD) to the nearest major road, by 0.030% for a 1% increase in NAD to the nearest health care facility, and by 0.014% for a 1% increase in NAD to the nearest small industry employment area. Conversely, rents of multi-unit dwellings within 300 m of a wholesale market are 12.3% lower than those of otherwise similar properties. Surprisingly, whether access roads are paved or not is not statistically significant, probably because of the dominance of walking, rickshaws use, and biking and the rarity of personal cars. Likewise, proximity to bus stops and to train stations is not statistically significant, possibly because they only provide regional and national service. These results should be useful for crafting measures to fund transportation infrastructure in Southeast Asian cities like Rajshahi.