The illusion of distance - how map distortion affects Singapore's property prices

• Main Authors: Seng, Javier Chong Eu, Tan, Bernard Dong Ping, Yap, Joyce Hui Ting
• Other Authors: Tang Cheng Keat
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2024
• Subjects: Social Sciences; Map distortion; Economics; Regression analysis
• Online Access: https://hdl.handle.net/10356/175448
• Institution: Nanyang Technological University

Multiple researchers have confirmed that distortion is inevitable in the creation of transit maps which could potentially result in socioeconomic consequences. Map distortion can cause repercussions across multiple dimensions apart from its direct effect on individuals’ decision-making with respect to commuting. Examples include impacts on a country’s policymaking, public finance, urban economics, and housing markets. Distortions in transit maps could be reflected in differences in property values such that two apartments of equivalent sizes and characteristics can be valued very differently due to the perceived distances between their nearest railway stations and the business stations reflected on the map. This paper seeks to explore the effects of the Mass Rapid Transit (MRT) map distortions on residential property prices in Singapore. We identified the top ten economic stations in Singapore and computed distortions in the MRT map using readily available data from the government as well as QGIS, a geographic information system software. We then adopted a pooled Ordinary Least Squares (OLS) regression approach and ran regressions for the economic nodes to establish a relationship between distortion and property value. We found a positive correlation between the average Singaporean household’s willingness to pay and MRT map distortion. This increase in willingness to pay is indicated by the increase in the percentage of property value of a resale Housing Development Board (HDB) flat within a specified radius around the MRT station. Such findings hold important implications as this information could potentially help present and future homebuyers of the country make better and more informed housing decisions which can be crucial to social and economic stability and development of the nation.