COMPARING IMPACTS OF AMENITIES ON PUBLIC AND PRIVATE HOUSING PRICES WITHIN MATURE AND YOUNG ESTATES

Abstract

Housing amenities are essential in supporting community living within estates. It is observed that HDB flats and private properties coexist in most estates. Differences in residents’ profile might result in a disparity in their willingness to pay for proximity to amenities. Furthermore, it is uncertain if amenities’ effects on property values vary across mature and young estates that differ in terms of development. A hedonic pricing model was implemented and it was discovered that proximity to primary schools, parks and petrol stations have a greater impact on prices of private properties, whereas shopping centres and MRT stations have a lower impact on prices. This relates to higher demand for quality living as household income increases where private homeowners place greater emphasis on environmental goods and prefer to be located away from amenities that generate higher noise and traffic. Higher incomes groups also tend to possess their own transport and are less concerned with the convenience to shops and public transport systems. In this aspect, externalities generated from amenities on prices of residential properties tend to have a reduced effect beyond a certain distance.