IMPACT OF THE CIRCLE LINE EXTENSION ON HDB RESALE PRICES - A TIMELINE ANALYSIS

Abstract

Rail transportation is the backbone of Singapore’s public transportation network that aims to provide accessibility across the island. It is thus anticipated that an impact will surface and cause a change in housing prices. This dissertation thus aims to:  Investigate if there is a price influence on HDB resale flats due to the enhanced accessibility by the extension of the circle line

 Use a timeline perspective to examine the price changes, if any, of the effects on HDB resale flats by using a control and experiment group Transaction data were collected from HDB’s database based on actual transactions.. These data sets were further enhanced with locational data such as proximity to Expressways, Central Business Districts and other points of interest. Using ‘before-after’ hedonic price modeling with a control and experiment group, results are then derived and analysis applied accordingly. It is found that the extension of the Circle Line did impact property prices positively, indicating a correlation between the two. Prices appreciated the most halfway through construction period, suggesting that anticipatory effects of the benefits the MRT station will bring far outweighed the negative externalities such as construction and noise that was going on at that time.