PREMIUMS OF 'WHITE SITE' ZONING REGULATIONS

Abstract

Mixed land uses have transpired as a cornerstone of multitudinous contemporary planning policies such as Smart Growth and New Urbanism, and Public-Private Partnership (PPP) has materialised planning objectives within the framework of a free market economy. In Singapore, the ‘white site’ zoning concept was contrived to proffer developers with carte blanche and greater flexibility in planning the quantum and optimal mix of different land uses on specific land parcels sold by the State through the Government Land Sales (GLS) programme. Despite greater prevalence and significance of the ‘white site’ zoning concept in Singapore’s urban development, however, evidence on its economic effects is limited. This study is the first that quantifies the housing price premiums of ‘white site’ projects compared with their counterpart of non- ‘white site’ mixed-use projects by using the propensity score matching and hedonic pricing models. The estimation results demonstrate that the implementation of ‘white site’ zoning is associated with a 13% price premium for private residential properties on mixed-use ‘white sites’. This premium appears to be achieved mainly in new sales transactions, suggesting that it is driven by the switch-use option that provides greater flexibility to developers and higher expectation of potential homebuyers on the project quality arising from this flexibility. There is an additional 2% premium in resale residential transactions of ‘white site’ projects which is affiliated with actual residential satisfaction derived from enhanced flexibility in end-product outcomes in terms of design, form and concept. Resident surveys and expert interviews further exemplify the benefits of ‘white site’ zoning to both residents and developers. These research findings provide pertinent planning and policy implications. Incorporating increased flexibility in zoning could help real estate developers capitalize on and better meet market demand as well as ensure that homebuyers attain higher residential satisfaction and wellbeing. In the specific context of Singapore, the URA’s GLS programme should continue to be proactive and adapt its partnership model to be even more in sync with the market by promoting more ‘white site’ projects in the expanded land areas over longer-term development periods.