EFFECTS OF NURSING HOMES ON HDB RESALE PRICES

Abstract

Singapore is currently experiencing an ageing population. The elderly population is expected to increase to 18.7% in 2030, meaning that more eldercare facilities would be seen being constructed around Singapore to cater to the demands and needs. It is crucial for residents to be supportive and welcoming of eldercare facilities as it becomes a necessity in the coming few decades. However, there were instances of residents objecting eldercare facilities near their properties, citing property values decreasing as one main reason. Hence, this paper aims to debunk the mystery of whether eldercare facilities, or nursing homes in particular, decreases property prices.

This paper utilises a Difference-in-Differences (DID) model, where the spatial and time effects of the distance and completion of nursing homes were analysed together with the HDB Resale transaction prices. To make the study more insightful, further investigation on the impact of quality of nursing homes on resale prices will be studied.

This study found that there is no significant impact of nursing homes on HDB resale housing prices but impacts of nursing homes on housing prices are largely due to circumstances and mindsets at the particular point of time. However, the study did conclude that private nursing homes have a positive effect on HDB resale housing prices.

The author hopes that this paper would encourage and inspire local researchers to delve further into eldercare theme, and contribute valuable insights for the Singapore Government to utilise to continue improving our eldercare scene. The ageing population is a phenomenal that we cannot escape. Instead of looking at it negatively, we should embrace this phenomenal and try to contribute for the overall benefit of society.