A REVIEW OF RENTAL HOUSING PERCEPTION AND IMPACTS ON PROPERTY VALUES

Abstract

Rental housing under the Public Rental Scheme by Housing and Development Board (HDB) is the main source of housing for the less fortunate individuals in Singapore. This study aims to understand the public’s perception of rental housing, the impact of income on this perception and to determine if rental housing has a suppressing effect on nearby property values. The model of Triangulation was adopted as the main research framework where the issue was explored using both quantitative (hedonic price model and survey) and qualitative methods (interviews and case studies). The study was conducted across three HDB estates, namely Bukit Merah, Kallang/Whampoa and Toa Payoh which was selected based on estate income level. Results showed that negative perceptions towards rental housings exist but were not strong enough to be translated into acts of repulsion which caused non-rental housing residents to move away to other areas. The public was also found to be more receptive towards rental blocks which have been upgraded. Income level had no influence on how rental housing affects the property value or the public perception on rental housing. The density level of rental housing was a factor which affected the public perception instead. Last but not least, rental housings did not have a suppressing effect on the property values. Many other factors such as location, proximity to amenities and transportation facilities and pricing played the more influential role in buyer’s decision than proximity to rental blocks.