HOW DO PEOPLE SORT IN THE EVENT OF A TRANSIT EXPANSION? EVIDENCE FROM THE PUBLIC TRANSIT SYSTEM IN SINGAPORE

Abstract

The sorting pattern of nearby housing due to a transit expansion is analysed and its impact on the turnover rate is estimated. A major expansion of Singapore’s Mass Rapid Transit (MRT) system yields three main results. Firstly, sorting begins before the opening, increases until the opening, and then levels off at a higher level after the opening. Secondly, the expansion increased the sales rate of apartments within 0.5 km of the location of a new MRT station by 0.921 percentage points relative to the sales rate of apartments within 0.5-1.0 km of it. Thirdly, the impact of the expansion on the relative increase in sales rate of apartments within 0.5 km of the location of the new MRT station is greater for smaller households, higher income families, and apartments located further from the CBD.