EFFECTS OF PLACEMAKING ON WEALTH INEQUALITY IN SINGAPORE

Abstract

Placemaking is recent in Singapore. It emerged as a formal government strategy in 2008, with intensified efforts after 2013. Introduced in 2016, current forms of Placemaking are organised in Placemaking precincts, all of which in central areas of Singapore. Placemaking in Singapore is contrary to Western literature and the ideals of its originators. Born in the 1960s as an American concept, it promotes the reinstatement of human centric public spaces as they were lost since the Industrial Age. In Singapore, Placemaking initiatives are not centred on resident communities, but geared towards marketing and improving tourist footfall. Even the involvement of business associations was superficial. The concentration of Placemaking initiatives at central areas can worsen wealth inequality as benefits are not widely enjoyed by most Singaporean households. Placemaking is a renowned approach to improving places. By virtue of the spatial equilibrium model, added vitality and amenities to places can improve housing values. At the point of writing, residential property is known to constitute more than half of assets in the household balance sheet. Hedonic pricing models, coupled with the Difference-in-Differences method were used to estimate the impact of Placemaking on housing prices. In this study, the positive impact of Placemaking on housing values can be affirmed. Besides that, its impact on housing values diminishes with distance from Placemaking areas. Results in this study provide basis for wider distribution of Placemaking initiatives, facilitated through recommendations for the involvement of the Housing Development Board and the People’s Association in government led Placemaking initiatives.