THE IMPACT OF NEIGHBOURHOOD STADIUMS ON SURROUNDING PUBLIC HOUSING RESALE VALUES

Abstract

Stadiums are a unique class of real estate. Plain observation of the fundamental roles and functions that stadiums exist to fulfil should reaffirm the prevailing need for such developments. In Singapore, the national stadium has arguably become a distinct national emblem as the nation’s preeminent stadium, as well as a representative for local sports. But as much as the national stadium is iconic, it is not the only sports stadium in the country. There exist many smaller stadiums across the nation, located amid clusters of public housing estates. From a real estate point of view, this beckons the question of any possible relationship between neighbourhood sports stadium and HDB housing values. From a data pool of all HDB resale transactions in the period of 2014 to 2016, this study finds a positive correlation between the presence of neighbourhood stadiums and resale values of surrounding HDB units. Transactions within an immediate 600-metre proximity to neighbourhood stadiums are transacted at 1.1% higher. Further investigation by deconstructing the 600-metre boundary even reveal that the highest price differences of 2.7% is observed within in the immediate 200-metre boundary around the stadiums. Subsequently, observed coefficients gradually decrease as distance outwards is increased, highlighting a negative correlation of price with distance. Additionally, survey results reaffirm empirical findings by showing that stadiums are regarded as positive neighbourhood amenities that well serve their surrounding communities, and are considered favourable to live close to.