IMPACT OF PROXIMITY TO MRT STATION ON LANDED PROPERTY PRICES

Abstract

This study examines the impact of proximity to MRT station on landed property prices. There are no other studies on landed properties. Therefore this study is interesting as it brings new insights on landed properties and acts as a basis for future researches. Accessibility to the Mass Rapid Transit (MRT) is always viewed as an amenities for residential properties and should command a price premium, but this premium may not apply for landed properties as residents are sufficiently wealthy to purchase their own private vehicle. The hedonic pricing model will be used in this research, together with landed property transactions from the 3rd quarter of 2017 to the end of 2018 as sample size. Data on various factors affecting landed property prices will be collected and included in the hedonic pricing semilog model. These data will be collected from REALIS and Google Map. The result shows that proximity to MRT stations affects landed property prices, only for distances between 0 to 1.2km. This result is statistically significant. The price premium diminishes as proximity to MRT increases. This is shown in the result which does not take distances between 0 to 1.2km as a dummy variable.