IMPACT OF INTERNAL SPATIAL ATTRIBUTES ON RESIDENTIAL LANDED PROPERTY PRICING

Abstract

This research is set out to examine the impact of internal spatial attributes (layout variables and internal externalities) on private landed residential property price. Landed housing price transactions in Kew Drive (Singapore) were chosen as studied sample. This sample provides a sufficiently large and unique data set in which traditional pricing attributes are eliminated and any differences in pricing could be explained by internal spatial attributes. Hedonic pricing model is utilized to arrive at regression analysis of the pricing relationship. Data of 145 land parcels of landed housing in Kew Drive were obtained through historical sales of site records from Urban Redevelopment Authority and further layout variables were formed through physical observation on Kew Drive landed housing maps. The empirical result shows that the location of individual units relative to other units within the area such as being corner unit or cul-de-sac unit contributes significantly to the pricing of landed property. The result indicates that in addition to all the traditional value-driving characteristics of landed properties, extra effort should be made to include internal spatial attributes into property appraisal so that developers, property owners and underwriters could benefit from a more comprehensive valuation of landed residential property.