Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/223010
Title: IMPACT OF EXISTING AND IMPROVED MRT SYSTEMS ON PUBLIC RESIDENTIAL PROPERTY VALUES
Authors: CHIA LI SHAN JASMINE
Keywords: Real Estate
Issue Date: 1-Oct-2009
Citation: CHIA LI SHAN JASMINE (2009-10-01T07:24:42Z). IMPACT OF EXISTING AND IMPROVED MRT SYSTEMS ON PUBLIC RESIDENTIAL PROPERTY VALUES. ScholarBank@NUS Repository.
Abstract: This research involves the study of existing and improved MRT systems and their impact on 4-Room HDB property values. It first examines the bearing station proximity of existing MRT lines has on property values. Secondly, based on the conclusions gathered, predictions of price movements of properties near the upcoming Circle Line (CCL) stations are made. Finally, the research forecasts station sites along the future Thomson Line (TSL) and Eastern Region Line (ERL). The cross-sectional and time-series multiple regression models and Sales Comparison method are adopted to conduct such analyses. In the first study, HDB resale transactions between 1Q2001 and 1Q2008 of 4-Room HDB resale properties within 500m from selected MRT stations - Boon Lay, Woodlands, Bishan, Hougang and Tampines - are examined. Cross-sectional multiple regression results show that all 5 stations exhibit an inverse relationship between price and distance from an MRT station. While coefficients of the distance variable are small, they are statistically significant. This implies that railway station proximity is still valued as a house price determinant. It can be deduced that other structural attributes and the performance of the economy play an important role in influencing house values as well. Proximity to physical amenities and activity centres, on the other hand, registers insignificant impact. Alongside previous statistical analyses, the Sales Comparison method is adopted to predict price variability of properties contiguous to two CCL stations, namely, Telok Blangah and Farrer Road stations. It is gathered that the degree of impact of each trait follows that of the comparable property. It can be inferred that proximity to a rail station in higher-income neighborhoods like the latter, becomes highly desirable, hence stimulating demand amongst mid-high income consumers. To make sound predictions, the rail development announcement effect is also investigated. This is observed through the case of Marymount station. The empirical result draws attention to the nature of real estate markets. One obvious characteristic is that they are imperfect and inefficient. Hence, even for a station due to open soon, the announcement has considerably no effect on surrounding properties. The previous two studies serve as a basis for the prediction for future station sites. To justify the placement of a new station, there should be at least 3000 households within 500m from an MRT station or high density developments and commercial activities in the vicinity. Propinquity to other strategic nodes constitutes a possible criterion to consider in order to set up a station. Ultimately, it is essential that the enhanced MRT system serves its purpose of bringing unprecedented convenience to larger masses and alleviating congestion on roads. Alternatively, the extensive number of people that a station is able to benefit would ensure its sustainability in the long-run.
URI: https://scholarbank.nus.edu.sg/handle/10635/223010
Appears in Collections:Bachelor's Theses

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