THE IMPACT OF PROXIMITY TO GREEN SPACES ON PRIVATE RESIDENTIAL PROPERTY VALUE IN SINGAPORE

Abstract

This study is an investigation into the impact of proximity to the various types of green spaces on non-landed private residential property prices in Singapore, motivated by the Sustainable Singapore Blueprint (SSB). SSB aimed to increase household proximity to parks within 400m and Park Connector Network (PCN) length to 400km by 2030 despite land scarcity in Singapore. Using the hedonic model, this study aims to explore the net impact of parks and PCNs on housing prices. It is hypothesized that properties located within 400m to both a park and PCN will fetch a higher price premium as compared to within 400m to a park or PCN due to the intrinsic values of green spaces. The sample for this study relies on the data from the REALIS and NParks from 2014 to 2018. However, the results illustrated that the housing units located within 400m of PCNs and parks face a price discount of 6.02% and 7.15% respectively. Similarly, units located within 400m to both parks and PCNs had a price discount of 6.76%. Anecdotal observations posit that parks which usually include amenities such as children playground and a platform for activities would give rise to noise creation, ultimately affecting nearby property prices negatively. Furthermore, most private residential properties come with greenery such as garden which are seen as overlapping of green spaces. The findings in this study highlight the importance of thorough planning in providing public green spaces in Singapore with respect to land scarcity issue the country is facing. Urban planners and property valuers should be mindful of the negative externalities that public green spaces bring to non-landed private property owners.