Singapore is known for its bustling urban landscape with towering skyscrapers, high interconnectivity and a dense population. Amidst the concrete jungle Singapore is known to be, lies a myriad of green spaces that offer you a breath of fresh air.
Green spaces provide residents with a range of benefits that go far beyond their aesthetic appeal, including promoting a sense of community in shared spaces, healthy living, sustainability, and–potentially an enhancement to property values.
In this article, we go over what green spaces are, and explore their significance for the overall well-being of residents and their relationship to property values in surrounding areas.
What are Green Spaces?
Green spaces are areas of land that are preserved and restructured intentionally in order to provide a serene, nature-filled environment within an urban landscape, offering visitors a break from their busy schedules.
Green spaces consist of an abundance of plants, trees, vegetation and grass. Moreover, they are restored in a way that allows residents and visitors to enjoy social, environmental and recreational activities in a shared space. In Singapore, green spaces enhance the quality of life and create a more green, sustainable environment while conserving our natural capital.
The Impact of Green Spaces on Property Value
According to a study conducted by Future Cities Laboratory and NUS, properties that are built close to nature reserves, urban forests, trees and woodlands are more sought after as compared to those next to grass patches. This could be due to the association grass patches have with cemeteries or golf courses. Moreover, the study highlights that flats that were in popular demand were situated about 200 metres to 1 kilometre from tree cover.
Additionally, the study reports that the value of an HDB flat increases by an estimated $553 for every 1% increase in greenery in the area. For the flats that are located within 200m to 1 km from green spaces, this value is driven up to $883.
Contributing Factors
There are a number of factors that contribute to the value appreciation of properties that are in close proximity to green spaces such as parks, gardens and nature reserves.
Limited Supply
Due to land being scarce in Singapore, there is limited availability of properties that are in close proximity to green spaces. As such, properties in these areas are highly sought after and are always in demand. The combination of limited supply and a high demand is a contributing factor for increased property values.
Health Benefits
As we mentioned earlier in the article, green spaces are known to have a positive impact on the physical and mental wellbeing of residents living close by. This includes improved mental health, less stress, and increased physical activity.
In addition to this, green spaces serve as a recreational hotspot for people to gather and partake in outdoor activities such as hikes, walks, picnics and more. This fosters a sense of community that people can use as a way to socialise and form new friendships and relationships.
These factors could potentially enhance the desirability of properties located close to green spaces, and also contribute to the increased value of the properties.
Aesthetic Appeal
Green spaces add to the aesthetic appeal of surrounding areas as they offer the perfect blend of urban and natural views. Residents staying in these areas not only get to enjoy the health benefits, but also the serene views of lush landscapes, greenery, parks and gardens.
As this enhances the overall attractiveness of the location it also increases the desirability of these properties, resulting in higher property values.
Potential for Higher Rental and Resale Rates
As a result of the factors mentioned above, there is a potential for properties located next to green spaces to fetch higher rental rates and resale prices. The desirability of these properties further increases demand from tenants and potential buyers, hiking the prices. There may be the likelihood of having a better view out the window or additional distance from the neighbouring blocks with higher percentage of green spaces.
To sum up, as green spaces contribute to a higher quality of life for residents, promote mental and physical well-being and enhance the aesthetic appeal of a location, they add value to real estate properties.
However, it is essential to note that while green spaces do add value to surrounding properties, they are not the key drivers of the increase in property value of real estate. Factors such as proximity to MRT stations, bus stops, amenities and schools are much more important to residents looking for a new home. In addition to this, the type of lease, land, property and facilities offered may also either add or lower the value of the property.
Although the study by NUS highlights the importance of green spaces in relation to increased property values, it also suggests that residing very close to parks, gardens and other green spaces (approx. less than 200m) may lead to disruptions, noise, higher humidity levels, and pests.
Price Comparison: Proximity to Green Spaces
For a price comparison in relation to the proximity of properties to green spaces, we will be analysing two locations, namely Bishan Point and Clover by the Park.
Both Bishan Point and Clover By The Park are 99-year leasehold condominium developments located in District 20, Bishan. The Bishan neighbourhood is known for its proximity to various green spaces such as parks and lush greenery that offer residents the opportunity to partake in various recreational activities.
Bishan Point, while not right next to a park, is a 20-minute walk away from the Bishan-Ang Mo Kio Park (BAP) and a 12-minute walk away from the Macritchie Treetop Walk. As such, residents can enjoy greenery and the benefits that come with green spaces within a short walking distance. On the other hand, Clover by the Park is located right next to the (BAP), providing residents direct access to the green space.
According to data provided by Edgeprop, the selling price for a unit at Bishan Point ranges from $1,279 to $1,410 PSF, whereas the price range for a unit at Clover by the Park starts at $1,339 and goes up to $1,856 PSF.
Similarly, the average monthly rental price for Clover by the Park is also slightly higher, at $4.1 PSF, as compared to Bishan Point’s average monthly rent, which is $3.8 PSF.
Moreover, the historical price trend presented in the graph also suggests that Clover by the Park has had a higher selling price than units at Bishan Point over the last two years.
These numbers suggest that the direct adjacency of Clover by the Park could be a contributing factor to its value and may impact property prices more compared to condos at Bishan Point. However, as we have mentioned previously, a number of other factors such as amenities, property and lease type, and proximity to MRT stations also affect property value.
Closing Thoughts
With Singapore’s commitment to making the city a green and sustainable haven, green spaces are valuable assets that contribute to overall enhanced quality of life and to a more sustainable and attractive environment. These spaces have resulted in a city where nature is integrated into different residential and commercial developments.
Along with benefits that positively impact people on an individual level, green spaces also enhance property values of real estate in surrounding areas. The scarcity of green spaces in residential areas and within Singapore’s urban environment, in addition to the positive effects on residents and their wellbeing, continue to drive up the demand for and prices of properties in greener areas.
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