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The three cities of Hong Kong, Taipei and Kaohsiung all feature state-of-the-art transit systems, but transit commuting rates are markedly different, ranging from less than 10 per cent in Kaohsiung to about 90 per cent in Hong Kong. This paper looks at the effect of transit station accessibility on housing prices in these three cities, which are all located on the south-eastern edge of the Greater China region.The key finding is that accessibility impacts stand in an inverse relationship to the size and popularity of the transit system. The results illustrate how intraregional variability in overall transit accessibility declines with increases in the spatial coverage of transit systems. The price premium for housing near transit stations is therefore greatest in Kaohsiung and smallest in Hong Kong, with Taipei exhibiting intermediate levels. Conversely, average land values are highest in Hong Kong and lowest in Kaohsiung.

Taiwan does not only have a high population density; its population exhibits a strong preference for high-density downtown living. Rich Taiwanese thus live downtown, not in the suburbs. In addition, the expected negative relationship between accessibility and the spaciousness of housing is weak or non-existent in Taiwan's metropolitan areas. Taiwan should therefore be highly suited to rail transportation investments. In 2007, a new high-speed railroad was inaugurated, connecting seven metropolitan areas. Hedonic estimates show that high-speed rail accessibility has a substantial impact on house prices in at least four of the regions. Interregional downtown-to-downtown commuting time seems to be the most important determinant of success in generating a station-centered price-distance gradient. Neighborhoods around HSR stations in suburban locations are not likely to spawn residential communities for commuters, since most Taiwanese prefer downtown residential locations. JEL Classification

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