In this paper, we estimate the property price gradients in Hong Kong. We distinguish our efforts from previous studies on the estimation of property price gradients by directly measuring the economic distance, i.e. the commuting cost and commuting time, instead of merely the physical distance. Changes in commuting cost exert a statistically significant and fairly pronounced effect on property values. In fact, our estimations suggest that the saving in commuting cost appears to be over-capitalized in property values. The effect of changes in commuting time on property values is either imprecisely estimated or non-monotonic, however. Nevertheless, the value of time implied by the estimates agrees well with the results reported in the transportation economics literature.