THE JUXTAPOSITION OF PLACES OF WORSHIP AND RESIDENTIAL UNITS: AN EXAMINATION ON THE ECONOMIC IMPACT ON HOUSING PRICES

Abstract

This study examines the relationship of places of worship (PWs) with respect to surrounding residential properties. While past literature established findings in a foreign context, this paper serves as a preliminary study in Singapore’s context. Existing studies have revealed that the presence of PWs constitutes either a positive or negative externality as reflected in the price impact on surrounding properties. A hedonic pricing model was adopted to analyze the extent of impacts of places of worship across varying distances of surrounding residential properties within 0 to 100 metres and 101 to 200 metres radius. An analysis indicates properties with immediate proximities (0 to 100 metres) to PWs incur larger price discounts. In addition, the paper seeks to comprehend the extent of varying pricing pressures exerted by the different places of worship. A key finding reveals properties within proximity to a Hindu temple or a mosque incurs larger price discounts. Apart from the type of PWs, lot sizes of PWs appear to share a negative – albeit diminishing impact - relationship with surrounding property prices, . Furthermore, a concentration of two or more places of worship near a single property will not have an additional influence on prices of residential properties.