IMPACT OF INTEGRATED TRANSPORT HUBS ON HDB RESALE VALUE

Abstract

The objective of the study was to examine the effects of an Integrated Transport Hub presence on the prices of public residential property. Using the Bukit Panjang Transport Hub as a case study, a controlled experiment was conducted, comparing the differences in HDB Resale prices between units located in the influence and the control areas. To determine the impact of the transport on the neighbouring residential properties, Hedonic Regression was adopted as the model to aid analysis. The hypothesis was formulated on the premise that Transport Hubs would generate a housing premium on units located in the influence areas, using walking distance to distinguish between units located near to or away from the Transport Hub. The resulting findings from the multiple linear regression supported the hypothesis when a premium of 12.6% was recorded for units within the influence area. The results from this study will be useful to spark off future local studies on the impacts of transportation hubs on housing prices, an area which is currently severely lacking in research as most dissertations and articles focused more on the impacts of Mass Rapid Transit (MRT) stations on housing prices.