THE PROXIMITY EFFECT OF PARK CONNECTORS ON NON-LANDED PRIVATE RESIDENTIAL PRICES

Abstract

Active mobility has gained prominence over the globe, and in Singapore, in the pursuit of being a car-lite nation, more emphasis is being placed on making cycling a viable mode of transport, with the Singapore government investing heavily in policies and built environment to achieve this goal. This dissertation investigates the proximity effect of park connectors on non-landed private residential prices. Using the hedonic pricing model via the Difference-in-Differences (DID) approach, it is found that every unit increase in distance (km) for properties away from the nearest park connector will result in a price discount of 7.04%. Also, after the announcement of the completion of the nearest park connector loop, properties being located within 400m enjoy a price premium of 4.29%. Additionally, properties in the radius of [101-200m] away from the nearest park connector commanded the highest price premium of 6.88% as compared those in further 100m radiuses up till 1000m. Lastly, properties located within 400m command a price premium ranging from 2.71% to 11.12% compared to properties located in 100m radiuses further than 400m till 1000m. Robustness tests, which use alternative completion date and falsification test, are able to bolster support to the results. These findings are believed to be of interest to developers, buyers and sellers of properties in proximity to park connectors when making pricing and purchasing decisions. They also signal to the relevant government authorities the successfulness of their efforts in pushing for active mobility.