STUDY OF THE IMPACT OF EXPRESSWAY ON RESIDENTIAL PROPERTY VALUES USING GIS MODELING

Abstract

This study aimed at investigating the impact of expressway on the prices of residential properties in Singapore. After a review of the literature appropriate to the study, an analysis involving 1,428 sales was conducted via the hedonic model to assess the effects of expressway on the transacted sales prices. Residential properties in the immediate vicinity of the expressway experience both positive and negative effects of the expressway. It was found out from the study that distance to the expressway node (improved accessibility) is positively correlated to the sale prices. All other things being equal, the closer the residential properties to the expressway node, the higher the price. But view of expressway (environmental impact) is negatively correlated to the sale prices, meaning, the closer the residential properties to the expressway, the wider the view of expressway and the lower the price of the properties. Thus there is a trade off. As this study focuses mainly on distance and view of expressway on the residential properties, therefore, no actual measurement of noise pollution in terms of decibels is carried out. For distance and view variables, there are measured using GIS. In comparison with the traditional methods, GIS has helped to improve the measurement of the distance variables. As for the view variables, the result derived from the analysis has shown that view of expressway from residential properties has negative impact on the prices. Also, by using percentage view variable in place of dummy view variable, it has slightly improved the explanatory power of the model. With the integration of GIS, the physical, accessibility and environmental variables of individual properties can be more easily quantifiable and also with more accuracy.