VALUE IN CONSERVATION: EVALUATING COSTS AND BENEFITS IN OWNERSHIP OF RESIDENTIAL TERRACE HOUSES

Abstract

Conservation is relevant in today's society as they usually met involve restrictions due to suppression of economic value in favour of historical and architectural heritage. Conservation in Singapore is a relatively recent phenomenon within the last 16 years and is generally applicable to buildings which fulfill the requirements set by Urban Redevelopment Authority for conservation of buildings. The author will look at residential shophouses/terrace houses by focusing on the economic aspect of conservation. The emphasis is on the costs and benefits this type of housing brings to owners and society. The analysis will be conducted by looking at attributes and conserved terrace houses possess like floor area, age, architectural heritage, historical background, proximity to expressways, public housing and number of owner-occupied units using the hedonic price model. Trend over time will be observed to see market performance of conserved terrace houses against non-gazetted terrace houses in the same district. From the results, in terms of capital and rental value, Emerald Hill has highest value while all three areas had relatively active markets during the observation period although transactions for Cairnhill was concentrated in only 1999-2001 and 2004-2005. Time lag was observed for Emerald Hill and Cairnhill in responding to market changes. As for the hedonic model, it is found there are premiums resulting from architectural features and historical background. Floor area was found to be the most influential factor for conserved terrace houses. The author recommends tax rebates, allowing adaptive reuse and collection of more owner feedback to improve benefits and to ensure quality.