IMPACT OF CIRCLE LINE ON CONDOMINIUM PRICES IN SINGAPORE

Abstract

The rapid escalating of property prices in Singapore has raised the concern of many people. Therefore, the studies of property prices remain relevant as there are many different variables that explain property prices. Since majority of the residents in Singapore travel around by public transportation system, accessibility is one of the key determinants in property prices in Singapore. The impacts of mass transit have long been studied in overseas context but few researches have been done on Singapore. This study seeks to fill the gap by carrying out a comprehensive study in the context of Singapore. This study will seize the opportunity given by conducting a research on the impact of newly built Mass Rapid Transit (MRT) line, Circle Line. Four stations on the Circle Line have been selected to examine the impacts of improved accessibility brought by MRTs on condominium prices. Hedonic pricing models are adopted in the study to determine the proximity premiums fetched by condominiums. This study has confirmed that the recent opening of Circle Line has a positive impact on condominium prices that are located of proximity to the stations. Also, results showed that 200m is the optimal distance away from MRT stations and premiums decreases as distance from MRT increases. The findings will enable return of transit investments to be maximized by providing a basis to a well planned transit and land development.