DOES UNIVERSAL DESIGN IMPACT SINGAPORE'S CONDOMINIUM PRICES?

Abstract

This paper examines the impact of universal design on condominium prices via BCA’s Universal Design Mark award in both the resale and presale market in Singapore. Universal design in housing aims to integrate accessibility features into the building, ensuring mobility to all users including the disabled, the old and the young at little or low cost. In Singapore, universal design is measured through the independent assessment under the Universal Design Mark Award where newly constructed residential projects are evaluated by the Building Construction Authority of Singapore (BCA). In this thesis, a total of 226 condominiums with 51,942 transactions were analyzed where 32,990 presale and 18,952 resale transactions were obtained from the Real Estate Information System (REALIS) from 2007 to 2019. Through a hedonic price model regression analysis, the impact of universal design on condominium prices controlling for hedonic attributes, spatial and time effects is evaluated. It was found that 1) a price premium of 1.43% exists for universal design condominium units, 2) resale premiums of 2.56% were higher than presale premiums of 1.07% explained by information asymmetry in the presale market, 3) in ageing planning areas, a 5.35% price premiums for universal design condominiums exist possibly explained due to trends of ageing in place, 4) the ranks of the Universal Design Award do not correlate with price premiums as lower ranked (GoldPlus & Gold) condominium units are able to obtain a higher price premium than the higher ranked (Platinum) condominiums units. These research findings provide pertinent planning and policy implications. It establishes that homebuyers, especially the elderly, value the incorporation of universal design into private residential developments. This is an indicative planning direction for BCA to be proactive and to tailor the initiatives to developers to incorporate universal design into housing developments, given the trends of an ageing population and increasing disability rights.