THE CONTRIBUTION OF STORY HEIGHT, ORIENTATION & VIEW TO THE SELLING PRICE OF CONDOMINIUMS IN THE EAST BAYSHORE PARK & MANDARIN GARDENS

Abstract

The market comparison approach is most commonly used for the valuation of private property. However, this traditional adjustment technique has been criticized as simplistic, crude and at best merely reflects a high degree of subjectivity inherent in the valuation process This study aims to examine the contribution of three characteristics that will have significant effects on the value of a housing unit They are storey height, orientation and the possession of a good view. Multiple regression analysis is carried out to enable objective measurements of market behaviour and the preferences of property house purchasers. A sample of sales prices is obtained using the database kept by the Singapore Institute of Surveyors and Valuers (SISV). 347 transactions from Bayshore Park and 275 transactions from Mandarin Gardens between the time period of 1993 till the first quarter of 1995 were selected Results from the hedonic pricing model, under the regression procedure, show that the attributes such as the date of transaction, floor area and storey height are significant explanatory variables. The other significant attributes include a sea view and a city view. In general, the study has found that for the two condominiums understudy (ie. Bayshore Park and Mandarin Gardens), which are located along the eastern coastline of Singapore, the selling price for an apartment in these condominiums can be mainly explained by several key attributes. These are the date of transaction which reflects market sentiments prevailing at that time; the flora area of the unit; and the storey height The "Hedonic" contribution of these attributes are found to differ accordingly among the mid-rise and high rise blocks concerned and from development to development This is supportive of the notion that every property is unique and that there is no universal formula for doing adjustments.