{"id":6925,"date":"2016-08-31T06:51:16","date_gmt":"2016-08-30T22:51:16","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=6925"},"modified":"2022-07-01T04:03:32","modified_gmt":"2022-06-30T20:03:32","slug":"parks-can-affect-value-property","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/parks-can-affect-value-property\/","title":{"rendered":"Can parks near properties boost their resale value?"},"content":{"rendered":"
<\/div>

Parks have long been a point of contention between property investors. The main question is: Does having parks near properties nearby improve the value of your house? The conventional answer is yes, because we assume everyone enjoys having this facility. But while many studies of this type have been conducted overseas, there have been few or none in Singapore. So can we safely say that having parks near properties is applicable to the local context?<\/span><\/p>\n

Urban parks: do they impact property value at all?<\/b><\/h3>\n

There’s no denying that particularly famous, established parks raise property value. The best known example of this is Central Park in New York City, where blocks closer to the park exhibit a whopping <\/span>20 percent price difference<\/span><\/a> from surrounding properties.<\/span><\/p>\n

In almost any city you visit, the “famous parks” are no different from famous landmarks. They all contribute positively to surrounding properties. In Singapore, we have our own versions of this.<\/p>\n

\"In
In studying the effect of parks near properties, Jurong Lake has seen massive rises in value since 2014<\/figcaption><\/figure>\n

Consider, for example, the <\/span>Jurong Lake District<\/span><\/a>. Back in 2014, we saw median prices of around $870 per square foot in this area. Today, it’s more common to see median prices of around $1,160 per square foot<\/span>.<\/b> One of the key features of the <\/span>Jurong Lake District <\/span><\/a>is the planned integration between the famous Chinese and Japanese Gardens by 2020, into the Jurong Lake Gardens.<\/span><\/p>\n

\"Being
Being a UNESCO Heritage site does bolster the reputation of the Botanic Gardens<\/figcaption><\/figure>\n

Or, consider residences near the famed Singapore Botanic Gardens. It’s in Bukit Timah, a notably high rent area (<\/span>notice that famous parks and high rent areas go hand-in-hand, in almost any city in the world<\/span><\/i>). <\/span>Cluny Park Residence<\/span><\/a> condos (99 year leasehold), which are near the gardens, go for over $2.3 million (approx. $2,700 per square foot).<\/span><\/p>\n

But move further from the gardens toward Lewis Road, and we see <\/span>Signature@Lewis<\/span><\/a> (freehold), and units at $1.4 million are more common (approx. $1,450 per square foot).<\/span><\/p>\n

Now <\/span>Signature@Lewis<\/span><\/a> and <\/span>Cluny Park Residences<\/span><\/a> are not so far apart, or so vastly different in amenities (minus the park), that the price difference should be that huge. But the fact that one overlooks the Botanic Gardens, and that residents can just walk across, clearly matters in terms of price.<\/span><\/p>\n

Property developers are not unaware of this: look in any number of brochures (particularly those for upcoming developments in Paya Lebar), and you will see constant mention of the new park connectors, so there must be some logic behind the effect parks near properties can have.<\/p>\n

But why does it work for some parks, and not others?<\/b><\/h3>\n

Any number of condos boast landscaped parks as features. And there are plenty of urban parks in Singapore that – however well cultivated – do not seem to do much for nearby properties. Why? The reasons are hard to pinpoint, but it has interested urban space planners for many years.<\/p>\n

(Those who are deeply interested may want to look up a major work on this, Jane Jacobs’ <\/span>The Life and Death of Great American Cities<\/span><\/i>. While it’s not local, and it dates all the way back to 1961, it’s still considered a classic on urban space).<\/span><\/p>\n

Parks that have the potential to raise property value share the following features:<\/p>\n