SPILLOVER EFFECTS OF COMMERCIAL AMENITIES NEAR MRT STATIONS IN SUBURBAN AREAS

Abstract

Decentralization has been a key planning strategy of Singapore since the early 90s. The findings in the existing literature on the impact of mixed-use zoning are ambiguous. This study aims to investigate the proximity effect and disamenity effect of such uses in the context of Singapore. This study exploits a difference-in-difference study design with the awards and completion of commercial sites in the Government Land Sales (GLS) program as an exogenous shock. It estimates the influence of a new commercial building on the prices of public housing near MRT stations in the sub-urban areas of Singapore. The results show that in contrast to mixed-office developments, retail developments yield a higher premium. Office developments showed stronger anticipative effects, and new office spaces yield stronger negative capitalization effects. However, considering the accessibility benefits of rail transit, commercial developments create positive externality effects on nearby residential housing prices.