IMPACT OF AMENITIES ON CONDOMINIUM PRICES IN SINGAPORE

Abstract

Given the increasing number of Mass Rapid Transit (MRT) lines in Singapore, it is relevant to examine the impacts of MRT on condominium prices. In Singapore, public transportation is convenient and extensively developed, thus majority of Singaporeans are dependent on public transport as well. Therefore, accessibility and distance to MRT is expected to have a large impact on housing prices. From the past studies, it can be seen that there are many studies done in analyzing the impact of MRT. Therefore, for this research, it will be focusing on the gaps in other studies and to examine other factors that affect housing prices as well. In the first study, condominium resale transactions from 2009-2014 are selected from Lakeside, Yio Chu Kang and Tanah Merah. Condominiums within 100m-500m radius from the MRT stations are selected for the study. According to the regression results, it shows that 100m-400m from the MRT generates positive effects on condominiums prices. Also, a distance of 200m from the MRT is the optimal distance as it produces the highest premium of 21.3%. Besides the impact of MRT on condominium prices, presence of sports facilities was also included in the study. This is because there are more integrated sports centres being developed in Singapore, and the study aims to examine the impacts on prices. Results from the regression shows that the presence of sports facilities generates a premium of 10.3%. This can be useful for future homebuyers to estimate how much premium can be expected by purchasing a condominium near an integrated sports centre.