THE EFFECTS OF LIQUOR OUTLETS ON RESIDENTIAL PROPERTY PRICES

Abstract

The effects of liquor outlets on residential property prices have been a topic less explored since liquor outlets has been directly linked with urban crime that affects property prices. Hence, it is the first research study to understand whether consumerism or neighbourhood disadvantage contributes to the direct effects of liquor outlets on residential property prices, namely HDB resale and Private Non Landed Condominiums (exclude ECs). To analyse these effects, two statistical models were used; hedonic regression model using container density and distance density to measure density of liquor outlets and difference in difference approach which analyse the impact of Liquor Control Zones on the treatment group and control groups in buffer zones of 0.6 km, 1.2 km and 1.8 km respectively. Results shown that both density measures for both HDB resale and condominiums were significant, especially for distance density at 5.12% and 5.21% for HDB resale and condominiums accordingly. The difference in difference model yielded significant results of 5.45% price increase for condominiums only within the control zone and 0.6km buffers, while no significant results for HDB resale. However, beyond 0.6 km buffer zones, both HDB resale and condominiums showed significant results of 7.07% and 6.74% price decreases in Liquor Control Zone which indicated consumerism effect on liquor outlets as positive amenities which increased prices beyond 0.6 km– a notable price tension. This study was insightful for urban planners to possibly revise the activity generating use plans to redistribute the positive impact of retail uses, although there were notable limitations.