IMPACTS OF ROOF GARDENS ON HDB RESALE PRICES

Abstract

The loss of natural landscapes due to rapid urbanization in cities has pushed urban planners to innovate new ways of integrating urban greenery into the surroundings. In compact cities like Singapore, a prominent solution that has been gradually adopted is the incorporation of skyrise greenery into developments. To enhance Singapore’s reputation as “A City in A Garden”, the Housing & Development Board has initiated the development of multi-storey car park (MSCP) roof gardens in HDB public housing estates to cater to the majority of residents who live in HDB flats. Such roof gardens provide scenic views for residents and serve as a communal space for recreation. To further assess the effectiveness of this amenity, this paper examines the impact of MSCP roof gardens on HDB resale prices using the Hedonic Pricing Models. This study found that HDB units located within 100-metres from an MSCP roof garden commanded a price premium of 2.17% post-completion of the roof garden, in comparison to units that were located more than 100-metres away. Additionally, the completion of the roof gardens increased HDB prices within the 100-metres boundary from 0.551% to 2.17%. In a comparative analysis, this study found that the immediate proximity of HDB units to a new roof garden impacted housing prices more significantly than the proximity to MRT stations as reflected from the steep drop of price premiums of 39.7% for HDB units located beyond 100-metres from an MSCP roof garden, in contrast to a 12.6% decrease for that of an MRT station