IMPACTS OF INTERNATIONAL SCHOOLS ON PUBLIC AND PRIVATE RESIDENTIAL PROPERTY PRICES

Abstract

With plans to increase Singapore’s population, the number of expatriates and other foreigners are also expected to increase (Sin, 2018). This results in the need for the government to allocate more resources in providing international schools to accommodate to their needs. There have been many studies done on schools, regarding them as a positive externality. This is especially the case for local schools, where being located near schools are expected to translate into better prices for their housing. However, there is little evidence about international schools in Singapore on the resale prices of residential properties. Hence, this study aims to study if there is a proximity effect of international schools on both public and private residential properties in Singapore. The study adopts the Difference-in-Differences (DID) model, in order to analyse the differential effects of the interactions of various terms. The results showed that private residential properties located within aa 500m radius suffer a price discount of 2.28%. compared to those living within a 500-1000m radius. As for HDB resale properties, those located within a 500m radius of the school suffered a 4.37% discount on their property prices. The results obtained from this study can serve as a reference for planning authorities in allocating resources towards the provision of international schools. Furthermore, the general public is able to use the findings to guide their decisions when making resale property purchases.