LAND VALUES AND MRT STATIONS : AN ANALYSIS OF GOVERNMENT LAND SALES - NON-LANDED RESIDENTIAL SITES NEAR MRT STATIONS

Abstract

This study assesses the impact of proximity to MRT stations on government land bids for non-landed residential sites. It hopes to contribute to the research by testing the hypothesis that close proximity to MRT stations do have a significant positive impact on land bids as well as on the developments. Two regression analysis models are constructed to facilitate analyze 11 years of secondary data from URA’s GLS and REALIS websites. Primary data are achieved by measuring actual walking distances from land parcels to nearest MRT stations using GIS. The hypotheses have been tested and results have shown that proximity to MRT stations has a positive significant impact on housing prices but not on land bids. An interesting finding is if the parcel is within 400 metres from the station, the land bid would decrease provided 85% confidence level of study is applied. Other findings include the land area, plot ratio, number of bids and locations have also contributed significant impacts to the land bid whereas the unit area (in $PSM), PPI and distance from MRT station affect the housing price.