Chapter 1: Background on Greenspace and Property Prices in Singapore

1.0: Introduction

1.1 Background

1.2 Research Rationale

In relation to the subject of residential properties and their pricing some research studies are conducted in the past in order to investigate and examine the core factors that affect the pricing and value of the residential properties (Yang et al., 2020). However, in the past research context, there is not conducted any research study in context to Singapore in relation to greenspace that affect property prices of residential property in Singapore.

Hence, the identification of this clear gap existing in the past research studies have enabled and motivated to undertake this research study for the research investigation purpose. Another rationale point that was induced to undertake the research study project was that there is ample scope of conducting the detailed research study on this subject and hence ample scope was found to conduct detailed research on this topic.

The research study will have greater significance in different contexts. Firstly, the research study will prove significant for the residential sector of Singapore to understand the importance of greenspace for enhancing the value and prices of the residential property. Secondly, in the academic context, the research study will prove helpful for the future researchers to not only gain the required knowledge on the subject matter but also to gain ideas for future research studies to conduct them in the new context.

1.3 Research Question

The primary question is to investigate “Whether the presence and accessibility of greenspace influence residential property values positively?”

1.4 Research Aim and objectives

Aim

The key aim of this research study is to examine the influence of the greenspace on the property prices and value of the residential properties in Singapore. The research is focused to examine whether the presence and accessibility of greenspace influence of the value and pricing of the residential property or not. The objectives of the research study are also designed in this research study in alignment of the research aim which are listed below:

Objectives:

The objectives of this research study are listed below:

• To examine the role of greenspace in ensuring the value and prices of the residential properties
• To determine whether the presence and accessibility of the greenspace influence the residential property and its values positively or not
• To examine the core factors related to green space that impact the value and pricing of the residential property in Singapore

Chapter 2 Background of research topic/issue

Background

Property in Singapore are most relevant and affordable for their investment purpose. Whereas, several types of properties available in Singapore named Public Housing (HDB flats) can be considered affordable, and approximately 80% of people live in this type of property. Moreover, other several types of properties can be found in Singapore including private housing, semi-detached houses, and detached houses (LOH, 2019).

Additionally, several factors affect the residential properties including the surrounding location, neighbors, social connections with surrounding people in their apartments, and easy accessibility to essential services such as medical services, economic aspects, condition of the building, rates of interest, and academic services (Pettinger, 2022). 

The cost of the resident’s buildings/properties in the market is approximately S$2,080,533. However, the cost of residents’ properties in Singapore runs based on the number of beds, and type of property such as cluster homes and bungalows.

The above Figure is the representation of the pricing of residential properties which starts from S$1,319 per square foot in the  June month of 2020. Therefore, terrace houses can be considered the most affordable properties that have an average pricing of S$3,168,077, This increases to the different types of properties which as Bungalow and there are several other types of properties present which are Cluster, Corner, and semi-detached houses (EVLANOVA, 2023).

2.1 Concept of Green Space

According to Jabbar, Yusoff, and Shafie (2021), green space is defined as the combination of green paved, open places, green gardens, and forests and creating a natural environment for human living by providing essential resources including fresh air, water, and fruits, and other foods to fulfill the human requirements. Furthermore, green spaces are responsible for facilitating the belongingness of the people. It also includes vegetation that lowers the risk of air pollution and makes the environment clean for human survival. This study also stated that green space has a positive impact on human lives as it provides a safe space to perform physical exercises such as walking, and running which further helps them to improve mental health and social connections.  In a similar context, Wood et al. (2018) defined green space as the presence of vegetation that is responsible for maintaining the economical quality that is beneficial for human well-being by making surroundings livable. Moreover, the implementation of green space has shown improvement in human well-being due to the lesser noise and air pollution, protecting from extreme heat waves which further results in the improvement in the psychological and economic status of humans.

Green space mainly focuses on the concept of holistic therapy which includes the presence of green plants and vegetation out of the window which leads to a reduction in depression in new mothers due to its easy accessibility, and lack of litter around them which is beneficial for both new mothers and their children. Browning and Rigolon (2019) defined green space in the context of academics in their study as more likely to have a positive impact on the performance of students, improve their health, and help them enhance their interest in various subjects such as geography, sociology, and environmental studies. According to Pauleit et al. (2019), green space is defined as the framework for the development to address the issues of urbanization which includes unusual climatic changes, and a lack of knowledge about the environment and natural resources.

Vanaken and Danckaerts (2018) defined green space as the presence of space for urban vegetation including parks, green lands, and space for sports. It seems to have several positive impacts on the mental health of children. However, there were several negative impacts were also found in green space such as increased prices in residential areas, limited access to the social connection of children, and higher maintenance costs.

2.2 Factors affecting the prices of residential properties

Here are some factors that can affect the prices of residential properties are as follows:

2.2.1 Role of Area or Location

According to the study conducted by Liang et al. (2018) in China, it was stated that residential housing considered a basic unit of living for people, and the prices of their houses depend upon the location and their surrounding areas. While purchasing any residential property, several factors need to be considered and prioritized such as surrounding location, condition of buildings, roads, and green space.

Similarly, Wittowsky et al. (2020) stated that while purchasing the property, the priority is the location that should have essential services including the presence of banks, shopping malls, and restaurants. Additionally, the distance from the house to the college or office should not be time-consuming and should be near the medical services. The environment should be pedestrian-friendly and have easy access to walking.

2.2.2 Role of Green Space

Kondo et al. (2018) stated that green space plays an important role in deciding the prices of residential properties for people.  People in residential locations prefer the presence of green space around them as the prices are higher than the prices of normal properties. Additionally, people living in the area green spaces or green parks near them are more likely to be physically active and have stable emotional health and less stress in their minds. Green space has increased the rates of residential properties, increased the number of shopping streets near them, construction of the greenway trails, and installation of planters increases.

Additionally, Jennings and Bamkole, (2019) stated that green spaces have implemented the belongings of more people and their retention in the society that further helped them to improve their social connection with their neighbors. In contrast, living in green space residents also hurts developing social connections outside of the green space residents. Whereas, the urban green spaces facilitated the development of relationships with living residents that come from different cultural backgrounds, ages, or demographic areas which can help to explore social diversity.

2.2.3 Role of Infrastructure and conditions of buildings

Durdyev, Omarov, and Ismail (2017) depicted that the role of the construction industry is essential to promoting economic growth in the real estate domain. Therefore, the poor building conditions can decrease the economic state of the property and it can also decrease the interest of people to purchase any property in a residential area. However, poorly constructed buildings or lack of maintenance of the buildings can decrease the quality of life. 

Moreover, Streletskiy et al. (2019) conducted a study in Russia that explained that reservation of the natural resources and better-constructed infrastructure plays an important role in enhancing their economic state, It provides an overview of the impact of better infrastructure on the price of residents. Furthermore, this study helped to understand that climate factors can damage poorly managed buildings that can decrease their cost, and result in a decrease in population in residential areas.

Additionally, Palme, Privitera, and La Rosa (2020) interpreted that Green Infrastructure (GI) was developed to reduce the energy in summer-time as per the requirement of people of cities. Implemented GI strategies help to deal with issues experienced by people living in cities in multi-story apartments by providing open space for their physical movement. Furthermore, it helped to reduce the load of cooling in the buildings of residential areas, it participated in providing solutions that are nature-based that can considered cost-effective, sustainable, and improve overall well-being.

2.3 Impact of Presence and accessibility of green space on the value of residential properties

Here are several impacts of the presence and accessibility of green space on residential properties, which are as follows:

2.3.1 Improved Health Quality and human well-being

According to the study conducted by Kondo et al. (2018), the presence and accessibility of green space play an important role in improving the quality of life of people, it was found that people living in green spaces have lesser stress, depression, lower risk of the heart and blood pressure related issues.   Furthermore, it has a positive impact on the mental and physical of children, they are more likely to be found with a higher intelligence quotient (IQ)  and more focus on their academics. Majorly, Green space has a positive impact on residential areas due to the presence of green plants, parks, and vegetation in the boundary of their society.

Additionally, Engemann et al. (2019), interpreted that green space is responsible for improving the psychological health of growing children by addressing their children’s trauma and other psychiatric disorders. Moreover, Pouso et al. (2020) explained the positive impact of green space on the mental health of people during the COVID-19 lockdown, it helped to improve the air quality, less exposure to air pollution and enhanced physical activity led to the improvement in their overall well-being and mental health well-being. People are more likely to spend their lives in nature which helps them to heal from their past experiences, breakdowns, relationship issues, and losses in their lives.

2.3.2 Environmental benefits

From the viewpoint of Kruize et al. (2019), green space can maintain environmental sustainability by developing woodlands, roadside verges, riverside footpaths, and public parks around residential buildings. Green spaces are likely to have a positive impact on the environment by developing well-designed streets, and roofs with plants that help to improve the climatic fluctuation further resulting in the improved quality of life of people living in the residential buildings. Moreover, it also helped to maintain the flow of gases such as Oxygen and carbon dioxide and promoted the cooling effect of the vegetation to promote optimal air quality.  It also helps to prevent the negative aspects of traffic, noise, and air pollution by refining the unwanted noise.

In a similar context, Suárez et al. (2020), explained the environmental condition of the metropolitan areas that were resolved by developing the green space, including the recreational activities including walking, playing with their pets, and staying in touch with nature. Additionally, it is also responsible for improving the risk of obesity and health issues related to the heart by promoting belongingness improving the social connections with people living in residential places, and lowering the hazards related to the environment including pollution.

Additionally, Koprowska et al. (2018), stated that the development of green space helped to improve the environmental conditions directly or indirectly by reducing the buffer of noise, reducing nitrogenous and other harmful gases that further leads to the improvement in cognitive health including sleep cycle, decreasing the risk of diabetes, cancer, and severe respiratory disease. Overview of these impacts of the presence of accessibility of the green space leads to the increase in the rates and values of residential properties.

2.4 Summary

Overview of Chapter 2 is based on the discussion of the concept of green space and its impact on the prices of residential properties, it includes the definition of green space based on the perception of different authors. However, green space represents the presence of green vegetation and green parks and the preservation of natural resources within the surrounding buildings to maintain their cooling effect and deal with environmental hazards. Furthermore, greenspace found to have a positive impact on human well-being by improving the physical and mental health, and academics of students, improving social connections with different people, and directly or indirectly environmental sustainability.

2.5 Gap

Several gaps were observed including the lack of research on Singapore, there was no research made to address the challenge and concept of the green space in Singapore. However, lack of data on the impact of green space on residential properties in Singapore. Moreover, several positive impacts were discussed in the research but there is no discussion about the negative impacts or any consequences on people or their well-being. Additionally, there is no discussion about implementing the greenspace for medium-earning countries but it was only implemented for the high-earning countries due to their easy accessibility and affordability.

Chapter 3 Research Design

The research study will undertake exploratory research design with clear intention and motivations. The exploratory research design is aimed to investigate any research phenomenon on which either no research study is conducted in the past or very rate research study was conducted and henceforth exploratory research design provides a good base to explore that particular research phenomenon in the form of a detailed investigation (Arthur et al., 2012). The exploratory research design is flexible in nature and hence its implication is quite valid and easy in all kinds of research studies. The exploratory research design gives facilitation to the researchers to get insight into the research data and hence to make the significant data interpretations to reach the research results. The exploratory research design is very much supportive to collect the empirical data about the research context and hence the data can be collected with the help of survey method in the research study.

In the light of the exploratory research design, the research study has implied the quantitative research design in this research. With the application of the quantitative research design in the research design the accurate and numeric data will be collected in the research study with the help of which to the point and accurate data results will be gained in this research (Brinkmann, 2018). The use of the quantitative research design has enabled the research study to find out the realistic and experience-based data with the help of the survey method and hence the data findings that will be collected with the help of this research design will be more accurate and realistic in nature.

The use of the quantitative research design in this research study will be done with the help of the positivism research philosophy. The positivism research philosophy directs to conduct the scientific research studies in such a manner that more realistic and practical data can be collected for the selected research phenomenon (Tsang, 2016). The positivism philosophy helps to gather the factual data about the research context and hence to reach the desired research findings based on that factual data. The research findings also proved supportive to reach on the realistic and empirical data findings based on the facts (Howell, 2012).

In the alignment of the exploratory research design the research study has also conducted using deductive research approach. The deductive research approach is a top-down approach that is also supportive and useful for the quantitative research studies and hence this is applied in this research study to the required extent. The use of the deductive research approach in the research study is done with the collection of the generic data and henceforth reaching to the specific data interpretations and results. In this relation in this research study generic data will be collected in relation to the impact of greenspace on the pricing and value of the residential property and henceforth the results will be related with the Singaporean context to the reach the research specific data and research specific data findings and results.

Chapter 4 Methodology

In this research study in the light of the quantitative research methodology and exploratory research design the research will undertake primary data collection method of survey. The survey method will be selected and used due to its varied advantages and benefits in terms of using it in the quantitative research (Pajo, 2017). The first is survey method is a cost effective and beneficial method of data collection in terms of saving the time consumed in collecting the data because the data is collected from the larger sample in a shorter time duration. Other than that in this research study, the use of the survey method is also done because with the help of the survey method the larger sample can be accessed and in this research study also a good and larger sample of the property dealers and sellers of Singapore will be approached in order to get the significant data about this research context (Tjora, 2018).

The survey will be conducted in the form of an online survey where the questionnaire tool was used for the collection of the data. The questionnaire will be designed in the form of Google forms and the links of Google forms were be shared with the research participants in such a way thatthey can access it and fill it (Sue and Ritter, 2012). The selection of the sample for the survey purpose was done with the help of the convenience sampling strategy. The use of the convenience sampling is done in the research studies when the data is required to be collected from the sample which is easily accessible and that is handful to the researcher (Saunders, 2011; Lord et al., 2012). Hence with the help of this sampling strategy, in this research study the properly dealers and agents who are involved in the activities of selling and buying of the residential properties in Singapore were accessed with the help of this research. Hence, in this research using the convenience sampling strategy, from the targeted sample population the total number of people selected for the survey purpose were 60. This sample was determined based on the responses of agreement to take part in the data collection process by the respondents because initially 85 were approached for the survey purpose.

The data that was collected with the help of the survey method from the selected sample size was analysed in quantitative manner. For the same purpose, in this research study, the MS-Excel software was used. With the use of this software the data was presented in this research study in the form of the graphical data presentation. The graphical data presentation helped the research work to present the data in the most effective and impressive manner. With the help of the graphical data presentation method the analysis of the data was done in the percentage form (Fink, 2009). The findings of the survey data that were generated from the graphical data presentation method were discussed in the light of the literature data findings and hence this discussion was proved the best suited approach to reach the final conclusion points of the research study.

The use of this research methodology in this research study was done including the ethical considerations such as the maintaining privacy and confidentiality of the participants, taking consent of participants for their involvement in the survey process and ensuring not violating the data protection acts and copyright acts (Loue, 2007).

Chapter 5 Results and Discussion

5.1 Results of the Survey

The key results of the research study are generated and presented in the form of graphical data presentation and these graphs as designed in the form of pie-charts in MS-Excel and these are presented as below under the particular headings:

Gender

From the analysis of the data, it has been interpreted that from the total number of respondents 80% were males and 20% were females (See Figure 1). From the analysis of the above data it has been interpreted that majority of the sellers of the residential property in Singapore are males.

Experience Level

When survey data was analysed to examine the experience level of the property sellers in Singapore, it was examined that 15% respondents were having experience of more than 7 years, 39% were having experience of 2-3 years, 28% were having experience of 4-5 years, 18% were having experience of 7-8 years (See figure 2). From the analysis of this data, it has been interpreted that the respondents have a good experience of working in the Singaporean properly selling field and hence their views can be very much valuable for the same purpose.

Involvement in Selling of the Residential Property

When the respondents were asked that whether they are involved in the selling of the residential property it was found that all 100% respondents were involved in the selling of the residential property in Singapore (See Figure 3). From the analysis of this data, it is interpreted that all the people are involved in the selling of the residential property so they must have good knowledge of about the research phenomenon.

Greenspace is the most important and concerned factor for the buyers of the residential property

When the respondents were asked whether the greenspace is the most important and concerned factor for the buyers of the residential property, it was responded by 54% that they are agreed with this aspect, and other 33% said that they are strongly agree, 2% were strongly disagree on this point and 3% were disagree on this point. The other 8% were neutral on this point (See Figure 4). From the analysis of this data, it has been interpreted that greenspace is the most important and very concerning area for residential property purchase for buyers and hence it is the most influencing factors.

Greenspaces increased the property values in your areas

When the respondents were asked that whether greenspaces increased the proper values in Singapore, it was responded by 60% of the respondents that yes, they agree that greenspace is the increased properly values in the areas, and 25% were strongly agree with this point. The other 7% were neutral on this point and 5% were disagree and 3% were strongly disagree on that point (See figure 5). From the analysis of this data, it has been interpreted that if the properties in Singapore, specially residential property, the greenspace proves a supportive factor for increasing the value of the property to higher level.

Customers in Singapore are very much concerned with the pricing factors of the residential properties

When the respondents were asked that whether customers in Singapore are very much concerned with the pricing factors of the residential properties, it was found that 55% were agreed on this point that pricing is an important factor for the buyers of the residential property in Singapore and the other 34% strongly agreed. Remaining 3% were neutral on this point and 5% were disagree and 3% were strongly disagree on this point (See figure 6). From the analysis of this data, it has been interpreted that in the purchase of the residential property the customers in the Singapore are very much concerned with the pricing factor and hence the sellers of the residential property must keep the pricing of the property.

Residential property prices incrementally increased with residential closeness to urban green spaces at particular distance intervals

From the analysis of this data, it has been seen that when the respondents were asked that residential property prices incrementally increased with residential closeness to urban green spaces at particular distance intervals, it was found that 68% respondents agreed that if the residential property comes close to greenspaces its pricing increases and other 17% were strongly agreed on this point. 7% were neutral on this point and 3% were disagree on this point and 5% were strongly disagree on this point (See Figure 7). From the analysis of this data, it has been interpreted that the properties which are close to the greenspaces are preferred by the customers on priority and hence this degree of closeness of the property increases the pricing of the properties in incremental manner.

Greenspace availability near the residential property influences the property pricing positively

When the respondents were asked that availability of the greenspace near the residential property influences the property pricing in a positive manner, it was responded by 68% that they agree that greenspace availability positively influence the property pricing, the other 17% said that yes, they agree that 7% were neutral on this point and 3% were neutral on this point and 5% were strongly disagree on this point (See Figure 8). From the analysis of this data, it has been interpreted that greenspace is the most contributing factors that influence the pricing of the residential property in Singapore positively.

Factors that are vital for the pricing and value of the residential properties in Singapore

When the respondents were asked that which factors are vital for the pricing and value of the residential property in Singapore, 14% said that location of the property determines the pricing and value of the property, 15% said that design features were agreed on this and 13% said that environmental factors are vital for the pricing and value of the residential property. 18% said that accessibility and convenience is the most crucial factor for determining the pricing of the property. 10% said the design and architecture is the important and vital factor for the pricing of the property and their value in Singapore, the other 7% said that facilities available in the Singaporean residential properties are responsible for pricing and the remaining 23% which was the most ratio of the respondents said that greenspace is the most important factor for increasing the price and value of the property (See Figure 9). From the analysis of this data it has been interpreted that though there are multiple factors responsible for increasing the price and value of the properties, however, the most important factor is the greenspace that influence the pricing and value of residential property in Singapore.

Greenspace is the most crucial factor that impact the value and pricing of the residential property

When the respondents were asked that whether greenspace factor impact the pricing and value of the residential property in Singapore the most, 46% were agreed that yes greenspace is the most important factor that influence the price and value of the residential property and other 42% said that they are strongly agreed on this point. 7% were neutral on this point and 3% were strongly disagree and 2% were disagree on the same (See Figure 10). From the analysis of this data, it has been interpreted that greenspace is the most important factor that influences the price and value of the residential properties the most in Singapore.

Greenspace valued by the consumers of the residential property in Singapore

When the respondents were asked that why greenspace is values by the consumers of the residential properties in Singapore, it was responded by them that 18% said that mental and physical well-being is the most important aspect of greenspace, 15% said that calm and natural environment is given by greenspace, 20% said that relaxing area outside the buildings is the most crucial aspect of green space and 13% said that improve and attractive physical environment is the most important aspect of the greenspace and the remaining majority percentage 34% said that all the above factors associated with greenspace are vital related to greenspace (See Figure 11). From the analysis of this data, it has been interpreted that multiple benefits are availed by greenspace facility in residential properties of Singapore and hence it was determined that greenspace is really a valuable factor.

Greenspace in the residential properties improves their brand image as their sustainable image

When the respondents were asked that whether greenspace in the residential properties improves their brand image as their sustainable image, 58% were agreed on this point and 33% were strongly agreed on this point. The other 2% were neutral on this point and 2% were strongly disagree and 3% were strongly disagree on this point (See Figure 12). From the analysis of the above data it is interpreted that with the association of the greenspace the brand image of the residential properties improves as the sustainable brand image.

5.2 Discussion

The findings of the above surveys are the representation of the insights of the concept of the residential properties in Singapore. Howeverthese findings have shown the major impact of the greenspace on the residential properties such as improvement in environmentalcondition, location of the property. The significance of these findings is the implementation of green space is crucial to enhance the value and prices of residential properties. Based on the figure 12, it is found that 58% people are agreed with the improvement in the brand image of residential properties due to the implementation of the greenspace.

Moreover, the findings of literature review depicts that greenspace has positive impact on the residenceproperties whichincludes improved health quality and their overall well-being including their physical and mental health (Pouso et al,.2020) and people are more likely to have lower risk of getting sick due to health conditions such as depression, obesity, heart related issues (Kondo et al,.2018). Additionally, literature review also explained the environmental benefits such as decrease in air pollution, noise pollution and improved air quality (Kruize et al,.2019). Greenspace are responsible for maintaining the optimal air quality by improving the flow of gases including Oxygen (Suárez et al,.2020).

Literature review have focused on other factors affected the value of residential properties including infrastructure, condition of the building, majorly focused on the role of green space, and the location (Liang et al. 2018).

Hence, the findings from the above survey and the literature are similar that shows that findings are closely related to each other and are more relevant. These findings commonly interpret the importanceof greenspace in the property marketing of Singapore. However, the data provided in the findingsthat both green spaces have a positive impactand is an essential part that needs tobe implemented in the surroundings of more properties. Moreover, this overview shows that the findings obtained from the literature review and surveysare authentic and novel so that it can help to understand the whole concept of green space.

Additionally, these findings are helpful in understanding the deep insights of the importance of greenspaceand its positive impact on residential properties. However, the data in the surveys considered as an agreement based on the response from the respondents to know their perception about the pricing and other factors that affects the residence properties.

Overall,the findings from both surveys and literature are provided the complete and authentic knowledge about the importance of the presence of green space and its impact on the pricing of residential properties.

Chapter 6 Conclusion

6.1 Conclusions

On the basis of the survey data findings and their discussion some crucial conclusion points are generated in this research study that are presented here. Based on the analysis of the data it has been concluded that residential property and their value and pricing is affected by varied factors however the most crucial and important factor that positively influence the price and value of the residential property is the greenspace. The consumers have a great concern for the greenspace as the most vital factor. In this relation based on the survey data findings it has been concluded that there are multiple factors associated with greenspace such as Mental and physical wellbeing, calm natural environment, relaxing area outside the buildings and improve and attractive physical environment. All these associated factors make the greenspace a very important and crucial factor for determining the price and value of the residential property. The current status of the pricing and value of the residential property has been increasing rapidly and in the development of the properties that main focus is given on the aspects of greenspace. With the inclusion of greenspace, it has been determined that greenspace positively influence the pricing and value of the newly designed and developed properties in Singapore.

6.2 Recommendations

• Considering the importance of the greenspace and its influence on the price and value of the residential buildings, it is recommended that in Singapore, the property builders must focus of designing of green buildings (Ur Rehman et al., 2023).Green building or green construction can foster sustainable building where physical structure of the building can have the application of techniques that are environmentally responsible and resource-efficient throughout the life cycle of a building.
• Other than this, in the residential building designing and constructions sector CSR practices must be followed with good compliance of the green and sustainable features (Avotra et al., 2021).

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