IMPACT OF PROXIMITY TO INTERNATIONAL SCHOOLS ON CONDOMINIUM PRICES

Abstract

The number of expatriates is increasing in Singapore, and the housing market has seen an increase in the demand for private condominiums that are a favourite for expatriate living. This study extends the body of literature on the impact of schools on housing value, with focus on international schools catered to expatriates’ children. It reinforces prior research findings on the accessibility of schools having an impact on property prices. The research proceeds with the collection and analysis of data on condominiums located at different distances away from international schools in the Central, South, East and West regions of Singapore. Results show that proximity to international schools has a positive impact on condominium prices. The increase in property values estimated using the hedonic regression model revealed that one kilometre increase in distance away from an international school decreased condominium prices by 2.7 percent. However, the effect of proximity to international school was not as great as the effect of proximity to CBD, as one kilometer increase in distance away from the CBD was found to decrease condominium prices by 5.9 percent. The findings of this study present empirical evidence to valuers, developers, housing agents, investors and buyers regarding the impact of facilities catered to expatriates on house prices. As a pioneer attempt to delve into international schools, this study could guide future researchers interested in testing the impact of facilities that are rising in demand on property prices.