THE IMPACT OF INTRA-TOWN CYCLING NETWORKS ON HDB RESALE PRICES

Abstract

Due to the health and environmental benefits of non-motorized transport, Singapore has made a paradigm shift towards cycling by investing on the development of its infrastructures. After the completion of Intra-Town Cycling Network (ICN) within several locations, there are existing plans by the government to construct designated cycling paths in all 26 HDB towns by 2030. However, there is still limited information about the effectiveness of bicycling investments and preferences of residents towards cycling development. With literature gap on the empirical study of cycling paths on housing prices, it is pertinent to investigate its economic impact to determine whether ICN is an amenity or a disamenity to residents in HDB estates. Moreover, although it is generally agreed that cycling paths are positive externalities in scholarly papers, general attitudes and perceptions towards the implementation of bicycle lanes vary across cities.

After incorporating Difference-in-Difference (DiD) to the hedonic pricing model, the public residential properties that are situated within the treatment zone of 100 metres have obtained a statistically significant price appreciation of 0.89%. This reveals that homebuyers have favoured government initiatives on promoting cycling as a means of transportation. The primary data has also aligned with the secondary data as residents have appreciated the presence of ICN in enhancing safety for both cyclists and pedestrians on the streets. Even so, there is a group of residents who felt that the price effect of ICN on HDB flats is either negative or absent which provides an insight to the magnitude of price increase for ICN.