GREEN PARK EFFECT ON HIGH-RISE PROPERTY PRICES

Abstract

This dissertation investigates the effect, if any, of green parks on high-rise residential property prices in Singapore. There are numerous international studies that consistently conclude that proximity of a residential property to green parks commands a premium and this research sets out to investigate the relationship between green parks and prices of high-rise residential properties. The focus of this study has been placed on high-rise residential properties and this is justified by the high percentage of residential units that are in buildings of 5 storeys and more. After reviewing the relevant literature and analyzing some 2,200 recent transactions of HDB apartments and private condominiums, it was found through hedonic analysis that proximity to green parks does command a premium. However, the magnitude of the premium has been found to differ from one housing sub-market to the other ranging from about S$3,317 to S$63,759. Premium attached to a public housing unit decreases from $4,699 (50m) to $3,317 (200m) when it is located further away from the neighborhood park. There is no premium attached to a public housing unit near to a town park. For private residential property, the positive value attached to proximity to a neighborhood park is highest within the 50m radial belt (14.1% or $63,759), followed by 200m (6.5% or $33,294) and 100m (1.2% or $6,394). There is a negative externality of -$96,714 or - 20.4% for a private property in the 50m radius of a town park.