A COMPARISON OF THE IMPACTS OF MRT ATTRIBUTES ON PROPERTY VALUES

Abstract

This research seeks to examine the price premium differences for condominium developments located within close proximity to either one of these four types of MRT stations: 1. Underground MRT with a shopping centre in the vicinity 2. Underground MRT without a shopping centre in the vicinity 3. Above ground MRT with a shopping centre in the vicinity 4. Above ground MRT without a shopping centre in the vicinity It is a relatively new kind of research area and thus this study hopes to add value to the existing literature. Two hedonic regression models – one with real prices as the independent variable and the other using nominal prices – are used to analyse 6 years of transaction data of condominium developments near the MRT stations chosen in the study. These data are retrieved from REALIS.

Regression results show that prices for developments located near an underground MRT station on average were higher than those located near an above ground MRT station by 2.08%. For developments situated near an underground MRT as well as a shopping centre, prices on average were found to be 2.78% more than those situated near an above ground MRT and a shopping centre.