THE IMPACT OF WOODLANDS REGIONAL CENTRE REVAMP ON RESALE FLAT PRICES IN WOODLANDS

Abstract

This paper explores the effects following a public announcement by the Urban Redevelopment Authority on the planning and land use of regional centres. The Woodlands Regional Centre has been identified as one of four growth areas, and the plans were made public in 2014. This paper will be analysing how the Woodlands revamp announcement has affected resale flat prices in Woodlands. ‘Woodlands’ collectively refers to the region of District 25, encompassing estates of Marsiling, Woodlands and Admiralty. The Woodlands Regional Centre is currently in development: The largest short-term effect on the district will be mainly attributed to the new office towers of the upcoming Woods Square Development as it will include the first office towers to be in the northern region of Singapore. Long-term effects will be accounted for by future developments like residential projects and parks towards the waterfront of Woodlands further up north, toward the Straits of Johor. Therefore, this paper will also uncover the effects of these new office towers (near completion) on resale flat prices in Woodlands. Woods Square Development is a sizeable project by Far East Organization, one of Singapore’s largest private real estate firms, expected to be completed with its occupation permit issued in late 2019. The methodology employed will be analysing how the revamp announcement, in conjunction with the upcoming offices, may have affected resale flat prices in the area. A hedonic pricing model is used in conjunction with a difference-in-difference model to isolate the effects of the offices as the most immediate consequence of the Woodlands revamp announcement. Ultimately, the empirical findings can provide insights on how the other regional centres with new offices in the future can similarly affect the district’s home prices.