Relationship Between the Selective En Bloc Redevelopment Scheme (SERS) and HDB Prices.

Abstract

The Selected En bloc Redevelopment Scheme (SERS) is an urban redevelopment strategy employed by the Housing and Development Board (HDB) to renew older housing estates in Singapore. The objective of the present study is two-fold: first, this study uses a survival analysis approach to examine the determinants of SERS; and second, a hedonic price method is used to estimate the effect of the likelihood of being selected for SERS on HDB price. A total of 8,526 HDB blocks and 607,131 HDB resale transactions were used in the analyses. The survival analysis models suggest that age of the block, number of floors, distance to MRT, distance to CBD, proportion of small units and upgrading programme can predict the probability of being selected for SERS. The results from the hedonic price models suggest that one standard deviation increase in the predicted probability increases price per square meter by between 3.4% and 5.5%.