UNDERSTANDING IMPACT OF PARKS ON PRIVATE RESIDENTIAL RESALE VALUE

Abstract

The main aim of the dissertation is to understand the impact of park proximity to resale non- landed private residential prices in the surrounding area. The general impact of park proximity was estimated without regard to park size or type. It is hypothesized that accessibility to parks has a statistically significant influence on housing price and residential property price increase with its proximity to parks. The hypothesis will be tested using hedonic regression analysis of 24,021 sets of resale nonlanded private housing transactions collected from all five planning regions of Singapore. The non- landed private residential units include both condominiums and apartments. The study was analysed over a period of three years from 2011 to 2013. The results reported in the study is different from the past usual studies and literatures. It was concluded that distance to park has a positive coefficient of 0.078. As such, the results concluded that house prices increase with increasing distance from the park. This could be due to four main reasons, namely the potential negative impacts generated by parks, low level of activity held within the park, the City in a Garden concept adopted by Singapore and lastly, the availability of green spaces within the living vicinity of condominium and apartment developments. As such, the residents of the condominium and apartment are less willing to pay for a residential unit that is located to nearby a park.