HOW DO HOSPITALS AFFECT PROPERTY PRICES

Abstract

Healthcare is an important aspect of society with many policies emphasizing the need for a good system. Due to high demand for its services, the healthcare sector continues to expand across Singapore. However not all places are as welcoming of these services being in their neighbourhood and hence there might be some perceptions that these healthcare services would be a detriment to the property values of the areas it is located. To help better understand the impact that healthcare has on the property prices, a regression was run to find out the correlation between the distance of the non-landed private residential properties to the hospital and its transacted price before and after the opening of the hospitals. The qualitative analysis has showed there was a slight premium paid for these properties after these the openings of the hospitals. This trend was consistent across all four of the hospitals tested. Another finding was the positive correlation between the distance of the properties from the hospitals and the premium price buyers were willing to pay.