EFFECT OF URBAN PARKS ON HDB RESALE PRICES

Abstract

In Singapore, there has always been an emphasis on the presence of greenery in the environment. In 2009, the government announced plans to provide a park within 400-metres walking distance for 90% of the country’s households by 2030. Therefore, this paper studied the effect of urban parks on public housing flats from April 2017 to June 2018 to examine whether there is a continued appreciation of the proximity to a park by homebuyers today. The amount of price premium or discount in the property resale prices that can be attributed to a park serves as a proxy for the value of parks to homebuyers.

The results of this study suggest that there is a 0.00835% price discount for a one-metre increase in straight-line distance between a public housing flat and its nearest park. Distances between the properties and their nearest parks were then categorised into 100-metre intervals for further investigations, and results showed that properties within 301 metres to 600 metres of its nearest park commanded a price premium relative to properties that within the 901 metres to 1000 metres band. It was also found that homebuyers tend to avoid living within 300 metres to a park as there may be certain drawbacks such as noise generated by park users. Finally, it is surprisingly revealed that park sizes are negatively correlated with property prices, whereby a one hectare increase in park size will result in a 0.404% price discount for the property. From these empirical findings, it seems that the various park characteristics do play a part in homebuyers’ decision-making processes.

In general, these research findings provide a better understanding of homebuyers’ sentiments towards residing in close proximity to a park. Policy makers can take these results into consideration to guide future actions and plans in relation to urban parks.