DOES GOD HAVE A SAY IN THE VALUE OF YOUR HOUSE

Abstract

A multivariate regression model was used to test the hypothesis that religious buildings have an influence on the resale prices of Housing and Development Board flats in their vicinity. Data from over 4000 transactions was analyzed. Home prices were regressed against their housing attribute, their locational attributes and their distance from religious buildings. As expected, the results indicate that floor area, floor level and the distance to the CBD have the strongest influence on home prices. However, at a 5% level of significance, the results also indicate that as a single group, religious buildings (Christian Churches, Chinese Temples, Hindu Temples and Mosques) have a negative impact on house prices. The effect seems most significant for 5 room flats. The results also indicate that the effect is more significant for Churches than other religious buildings. Possible explanations for these observations are presented and discussed in this thesis. In particular, the demographic differences (such as religion, car ownership rates and income levels) between owners of various flat types that might help offer an explanation were examined.