EFFECT OF UNIVERSAL DESIGN ON PUBLIC HOUSING PRICES: EVIDENCE FROM SINGAPORE'S PUBLIC HOUSING MARKET

Abstract

This study utilises the UD Mark Award awarded by BCA as a proxy to measure and indicate the existence of Universal Design, in order to study the effects of Universal Design on the price of Singapore’s HDB flats. Universal Design is the design of products and environments to be user-friendly and all-inclusive, regardless of age and ability. The hedonic model approach was used to study HDB resale transactions between January 2017 to May 2020, and results of the empirical test showed that HDB resale flats with Universal Design commanded a price premium of 0.0117% over flats that were uncertified. Although a positive relationship was observed, the results were not statistically significant. It was also found that higher ratings of UD Mark Award did not necessarily lead to higher prices, as HDB flats with the lowest tier of award had the highest price premium of 3.52%, while those with mid-tier and high-tier ratings had prices lower by 1.71% and 6.05% respectively. Additional tests were also carried out to investigate if flats awarded the UD Mark Award after refurbishment had lower resale prices compared to flats certified as a new development. Results showed that indeed flats refurbished with Universal Design had 2.48% lower resale prices. The above findings carry policy implications as they could help MND understand the value of Universal Design in public housing developments, and guide their directives to the statutory boards under their purview, which include HDB and BCA. Further initiatives can be explored with the increased awareness of disability rights and ageing in place policy endeavours.