AN EMPIRICAL ANALYSIS OF THE IMPACT OF CHANGES IN TOWNSHIP CHARACTERISTICS ON TOWN'S APPEAL

Abstract

The immobility nature of real estate has subjected it to be vulnerable to changes in the environment. Since the completion of the Revised Concept Plan 1991, the tremendous amount of changes in the physical environment has greatly impacted on the urban landscape. Likewise with the advancement in the economic progress, variations in the population profiles have also been experienced. Since changes in the characteristics of a town may have great impact on the appeal of real estate, the immobility nature can hence subject real properties to these external forces affecting their desirability and hence values. This study thus aims to examine the inter-temporal effect of changes in township characteristics on the attractiveness of towns and hence prices of residing properties. A case study was conducted to examine the various attributes that contributes to the quality of a town. From the study, it was found that the changes in town's connectivity, residential and commercial developments and the population profile are critical factors that have great impact on the residential towns in Singapore over the past decade. The key results derived from the multiple regression model reveals the significance of town's connectivity, residential and commercial developments. In addition, all the variables were shown to have relationships with the township attractiveness that are congruent with past studies. Though no discernable conclusion can be made that changes in population profiles affects the town significantly, overall results highlights the fact that inter-temporal changes in other attributes do create an impact a town's appeal and hence explain for the price differential in residing properties.