THE VALUE OF A POOL VIEW: EVIDENCE FROM SINGAPORE PRIVATE CONDOMINIUMS

Abstract

It is comprehensible for a unit with spectacular view to enjoy a price premium over similar units without the privilege of a view. However, the magnitude and direction of a pool view specifically are not commonly discussed in past literature. This study will also address on the technological constraints in the past which resulted in a longer and tedious data collection process. Hence, this research study seeks to investigate the impact of pool view on housing prices with an improved methodology from past studies. ArcGIS, will be implemented to identify and quantify the degree of pool view for each individual unit. Additionally, a second investigation will be conducted to analyze the impact of number of swimming pools on the price premium of units with pool view. A detailed quantification of pool view will be conducted to ensure the reliability of the dataset. Lastly, the hedonic pricing model will be adopted to study both areas of interest. Consequently, results provided by this study indicated that units with pool view will enjoy a price premium of 3.30% as compared to similar units that do not have pool view. A second regression was run to understand more on the intriguing effect imposed by the number of swimming pools on pool view. It was found that for every unit increase in number of swimming pools within a development, a unit which has pool view will enjoy an increase of 0.02% to 0.03% on top of its existing pool view price premium. Nevertheless, the motivation of this study is to bridge the literature gap on the value of a pool view and benefit relevant parties involved in the real estate market.