THE IMPACT OF CHANGI INTERNATIONAL AIRPORT DEVELOPMENT ON SURROUNDING RESIDENTIAL PROPERTY VALUES

Abstract

The real estate market mechanism, however imperfect compared to the general Investment market, would to some extent mirror the ways in which the real estate resources are utilised against a nation's economic and political "backdrop".* Governmental intervention in the supply and demand for real properties as well as large scale public projects (e.g. the construction of an international Airport) would similarly be reflected by the price mechanism of the real estate market. Rapid urban growth, technological advancement in aviation, and increased demand for air transport set the stage for the airport dilemma of the 1980's. Just as airports began looking for room to expand, they fell out of favour where they were most in demand in highly urbanised, metropolitan areas. To understand the reasons, for this paradoxical situation, it will be necessary to examine the impact of the airports on their "hinterlands". The issues involved range from environmental and ecological issues to subtle and complete economic and social problems.

Airport planners have not always considered regional impact as basic elements in the planning process. Two or three decades ago, when a major airport was built, more often than not aeronautical factors were the chief consideration. At that time, three issues seemed to dominate:- 1. Sites that could meet the requirements for geology and technology. 2. Those topologically appropriate. 3. The quest for relatively inexpensive sites located close to the city. Many of these airports were located on the outer fringe of urban areas, with few buildings to obstruct landing approaches, and relatively few residential developments to disturb. The surge in "air traffic" after World War II coincided with the rapid acceleration of urbanization throughout the world. What were once "airports" in the country became "airports in the city" often surrounded by development which stretched far beyond the facility itself.