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1. INTRODUCTION Hedonic pricing methods explain the value of real estate in terms of the features of the property. This approach treats a certain property as a composite of characteristics to which value can be attached. The sum of the value of the individual characteristics makes up the value of the property as a whole. Studies on real estate prices generally categorise the value bearing features of properties into three types namely: physical, accessibly and environmental (Fujita 1989; Bowes and Ihlanfeldt 2001). Several studies have been conducted focusing on different features of interest. Accessibility as provided by different modes of transportation and railways in particular also received attention. In order to single out the effect of railway stations on property values, it is suggested in the literature that stations should be seen as nodes in a transport network and places in an area (Bertolini and Spit 1998). Based on this framework, recent empirical studies treat the node…