THE IMPACTS OF THE PAN ISLAND EXPRESSWAY ON SURROUNDING RESIDENTIAL PROPERTY VALUES

Abstract

While there is concern that locating a private housing estate beside the limited-access expressway will affect the residential property values, there has been little systematic study to confirm or dispel this conclusion. This thesis addresses that issue. It looks at the environmental impacts of the expressway on the surrounding private residential property values. Environmental disturbances within the study area included noise, air pollution, vibrations, lorry nuisance and construction nuisance. Data were gathered on all valid property sales from 1976 to 1984. Residents were interviewed to determine their perception of expressway disturbance and other pertinent information. The relationship between the environmental impact, distance from the expressway and property value was investigated. The study results suggest that expressway related environmental externalities are responsible for a lowering of value of nearby properties compared with those of properties more distant from the expressway. Analysis of the study area data indicated a decrease of approximately 18.8% below the average price of properties in the study area. Alternative analyses supported the general conclusion but not necessarily the quantum of the impact in monetary terms. Lastly this dissertation recommended various measures to reduce the PIE adverse environmental impacts on the property values.