Impact of Integrated Transport Hubs on House Prices in Singapore

Housing is a commodity of variable uses, equipped with unique characteristics attributable to internal and external factors, each playing a major role in determining its inherent value. Location theories were developed by early economists to explain the pattern of land use by providing solutions to the problems associated with the optimal use of the land. Improvements in accessibility are expected to generate positive effects on house prices since commuting would be enhanced. Additionally, transportation networks would attract different types of activities for the work, live and play lifestyles for the residents.The objective of the study is to examine the effects of an Integrated Transport Hub (ITH) as an urban planning policy on the prices of public residential estates in Singapore. A controlled empirical study is conducted using the Bukit Panjang Transport Hub to examine the differences in resale prices between units located in the influence and the control areas. Hedonic regression methodology is applied to analyse the impact of the transport mode on the neighbouring residential properties. The hypothesis was formed on the premise that ITHs would generate a housing premium on units located in the influence areas, using walking distance to distinguish between units located near to or away from the transport hub. The findings from the multiple linear regression support the hypothesis when a premium of 12.6% was recorded for units within the influence area.The significance of the study is useful to assist in planning of public transport and its likely influence on prices in the housing market.