|Impact of schools on housing values in Singapore|
|Detail:|| A recently published study in the Journal of Urban Planning and Development assessed how ease of access to schools and the reputation of the schools impacted housing values in Singapore. The authors, Hoong Chor Chin and Kok Wai Foong, used a Hedonic price model, which measures the value of aspects of a good that are not formally traded (e.g., a view from a residence, “good” neighbors), in predicting changes in prices in the housing market in Singapore resulting from the presence of schools.|
Transaction data for property development in Singapore from January 1999 to December 2003 were analyzed. Property values were calculated using the hedonic model of residential property value using variables associated with market factors, structural factors, estate factors, neighborhood factors, locational factors, and proximity factors.
The findings indicate that the size, tenure, and age of the property, and the distance to the central business district had the greatest influence on property values. Additionally, proximity to a major shopping district or a subway station increased property values, while, the presence of industries decreased property values. Given a well-developed transportation infrastructure, Singaporeans may prefer neighborhood quality to proximity to a school. The ease of access and prestige of primary schools appeared to be a more important consideration when making a home purchase than that of secondary schools. This supports the common belief that quality of primary schools is one of the most important factors in home purchases when parents are trying to improve future life opportunities for their children. The findings are generalizable to all condominium properties in Singapore.
|Source:||Journal of Urban Planning and Development, 132, 3, 120-129, 2006|