Impact of Integrated Shopping Mall on Non-Landed Private Properties Prices in Singapore

Running head: REAL ESTATE 1
Impact of Integrated Shopping Mall on Non-Landed Private Properties Prices in Singapore.
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REAL ESTATE 2
Introduction
Over the last one decade scholars and economists have developed a substantial amount of study
on different elements manipulating the private residential properties value. Key property value
determinants include physical features amenity, property, and environmental attributes, financial
sale conditions and most essentially, property location. Buyers of homes look at various property
facets when deciding on the price they will be comfortable paying for the homes. Such facets
include number of bedrooms, property’s square footage, number of bathrooms, and size of the
lot. Nevertheless, as many say, there are only three things that matter in the entire industry. That
is location, location, and location. Hence this essay focuses on how private property prices are
affected by being located next to or above integrated shopping malls in Singapore.
Price Effects on Private Property Due to Integrated Shopping Malls
Since Singapore is city state there is no much pretty of land that is left unused. Therefore
many people are developing on non-landed private properties (Bay, 2014). Apartments and
Condominiums are built on top and below of each other. The owners of all the units share the
whole compound and hold a strata title. This article focuses on some of the price impacts brought
up by non-landed private properties developments.
The price of private non landed homes were high but eventually dropped after the
property cooling measures took place .Resale prices of condominiums and private apartments
declined by 0.2 per cent (from SRX property portal) (Sing, Tsai, & Chen, 2016). Developers
were expecting the sale price of non landed private properties to continue going higher even
though at a slower pace after higher additional buyer’s stamp duty (ABSD) rates and tighter
loan-to-value limits took place. After the property curb took place also, it brought a big drop in

REAL ESTATE 3
resale of private non landed homes that fell to 35.3 per cent. On year to year basis prices went
down. In her comments regarding the data, Christine Sun, the Orange Tee & Tie research and
consultancy head stated that: "These down trends might be an early signal that resale prices
might have peaked in a number of residential divisions and are beginning to unstiffen under the
present cooling regulations” . The drop was felt most by apartments in the in the central city
where homes are more likely to be bought for investment or speculative purposes and on which
the higher ABSD rates and loan limits are likely to apply.
Contrary the prices for units outside central city are more likely to be bought by
homebuyers continue to rise by 0.8 percent. (Yuen, KWEE, & Tu, 2016). The premium buyers
were prepared to pay over market value continued to decline as per SRX measure. Overall
median transaction over X-value (TOX) fell to zero after falling to $4,000 from $17,000 before
the latest cooling measures. TOX measures how much a buyer is overpaying or underpaying on a
property. Many people sold below the valuation because they recorded either zero or negative
median TOX. Ms Sun stated that "many signpost that the winds have moved from a seller's to a
buyer's market."
Prices of private properties near the MRT are of the same as the rest of the country or
slightly at a low percentage higher indicating a slow growth (Deng, McMillen, & Sing, 2012).
Condos located less than one kilometer away from the MRT station five years prior to opening
there is -5.9 percentage fall (from table 2) and to make the matter worse the price per square feet
of condos less than a kilometer its dropping in second and first year prior to the opening of the
MRT and the people knew that the MRT are opening in less period of time thereby indicating
that availability of MRT station nearby may not affect the price of private properties.