Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/222945
Title: IMPACT OF DOWNTOWN LINE ON PRIVATE RESIDENTIAL PRICES
Authors: NG JING XIAN HAZEL
Keywords: Real Estate
RE
Lum Sau Kim
2013/2014 RE
Issue Date: 26-Nov-2013
Citation: NG JING XIAN HAZEL (2013-11-26). IMPACT OF DOWNTOWN LINE ON PRIVATE RESIDENTIAL PRICES. ScholarBank@NUS Repository.
Abstract: Extensive studies on the relationship between housing prices and proximity to mass transit reveal conflicting results over time due to various confounding factors. In the context of the MRT (Mass Rapid Transit) system in Singapore, we speculate that the increasing reach but declining service standards of the MRT coupled with the continued expansion of public bus services may see declining MRT price premiums going forward. We investigate this by identifying the accessibility premium of the newest MRT route, the Downtown Line (DTL), on private housing prices in the Northwestern region of Singapore using a controlled experiment modeled on a Difference-in-Difference (DID) approach. Specifically, the price impact before and after the announcement of the DTL on the private condominiums and apartments in the control and influence areas, demarcated using a 500m radius from the DTL stations, was analyzed for a six-year period from 15 July 2005 to 15 July 2011. Our regression results affirm a significant nominal price premium of 9.97% that is attributable to proximity to the announced DTL stations, reflecting the capitalised value of the expected future benefits brought about by the fifth MRT line in Singapore This positive announcement effect is larger than what has been reported in other studies and may be partially driven by the fact that the Northwestern region is still poorly served by public transport as observed in the strong negative impact of distance to CBD on housing prices. Hence, MRT accessibility continues to be capitalised for private housing there despite the extensive MRT network. The finding informs policy makers as to the importance of accessibility on land values as well as the impact of the continuous MRT expansion on property prices.
URI: https://scholarbank.nus.edu.sg/handle/10635/222945
Appears in Collections:Bachelor's Theses

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