Do Green Spaces Really Mean Better Property Value?

In a city as bustling and dynamic as Singapore, finding a home near green spaces can be a true gem. Our government's dedication to transform the nation into a city in a garden can be shown through their various green efforts, whether it is maintaining green areas, building vertical gardens, and developing parks in various neighbourhoods. Read on to find out if green spaces play a vital role in property value.

Green spaces include trees, gardens, and parks that have been developed for the purpose of aesthetic and recreational activities. Whether it is considered to be natural or not depends on the level of interference mankind has during the development of the green space.

The World Health Organisation (WHO) constitutes green spaces as necessary for sustainable and healthy living environments, and that everybody should ideally live within 500m of a green space.

Singapore has four types of green space: Recreational gardens and parks, nature reserves, skyrise greenery and street trees, and wetlands.

Here are some reasons why you should consider purchasing properties near green spaces.

1. Boost your overall quality of life

Humour me and close your eyes after reading the next sentence. Imagine stepping out of your home and straight into a natural reserve. Feels great right? You feel the wind blowing by, hear the sound of the singing birds, and smell the clean fresh air.

Living near green spaces offer you great respite from the hustle and bustle of the concrete jungle, offering you a quiet space to chill, unwind, and calm down at the end of the day. Whether it is a lazy weekend picnic, an evening walk, or a morning jog, these little pockets of green haven help us to achieve a happier and healthier lifestyle.

2. Feel the health benefits

There is something about being close to nature that just makes you feel good. Studies have shown that being exposed to nature can boost our mood, lower our stress level, and even improve our overall physical health.

In fact, when the late founding prime minister, Mr Lee Kuan Yew, opened the National Orchid Garden in 1995, he said "I have always believed that a blighted urban jungle of concrete destroys the human spirit. We need the greenery of nature to lift our spirits."

I am a huge nature kind of guy and being in close proximity with nature is able to alleviate whatever stress I may be experiencing. In a fast-paced society like Singapore, living near green spaces could be the key to staying healthy and balanced.

3. Build a sense of community

Green spaces are where friendship can be fostered. They create excellent opportunities for social encounters within the community, reducing the isolation often experienced when living in bustling cities, and leading to greater well-being and resilience at a community and individual level. Living near these areas also means better accessibility to community activities, festivals, and events that are organised and hosted there.

4. Exciting government projects

Mr Lee Kuan Yew once stated in his memoir that he transformed Singapore into a tropical garden city so that Singapore can achieve first world standards in a third world region.

Singapore is always looking for ways to partner the community in their design of green spaces to Singaporeans' needs. In order to protect Singapore's core ecological regions, buffer gardens and parks that attract and enhance biodiversity and ecological connections are developed. For example, when the 33-hectare Dover Forest was announced to make way for housing projects, the government also launched a public consultation exercise to receive feedback and suggestions.

The Singapore government is always working on new ways to enhance our green spaces. With upcoming projects and initiatives, these areas are set to become even better. This means homes near parks will continue to benefit from new improvements and amenities, making them a smart choice for the future.

At the end of the day, property value is still a critical aspect of our home. At one point, we might want to move to another location to meet our family needs. Some green spaces may be at locations that Singaporeans consider ulu and less valuable. Homes near green spaces do not only look nicer, but they can also potentially be worth more. In recent years, homeowners have placed an increased priority on being near green spaces.

Source: The Straits Times

To show their impact on property values, we will look at green spaces in the OCRs as they are furthest away from the city centre, specifically two green spaces: Pasir Ris Park (PRP) and West Coast Park (WCP).

Resale HDBs vs green spaces

2014-2024

Source: Investment Suite

HDBs 1.1km to 2km from WCP had 22.45% more resale value than HDBs within 1km of WCP. However, the results were opposite for HDBs near PRP. HDBs within 1km of PRP had 0.91% more resale value than HDBs 1.1km to 2km from PRP.

There are a couple of reasons why I think HDBs closer to WCP had lower resale value than those further away. For one, the PSA port is just by the park, meaning high noise level and smell. Another reason is that there is not much happening in the immediate surrounding. The entire area is occupied by NUS. The only reason why the average resale value is higher further from WCP is due to the million-dollar transactions made in the recent years

In the case of PRP, Pasir Ris MRT is situated well in the middle of the properties within the 2km radius, making it incredibly accessible no matter what. As such, the only factor that will make the difference is how close to the park the HDB is.

Resale condos vs green spaces

2014-2024

Source: Investment Suite

Condos 1.1km to 2km from WCP had 21.33% more resale value than condos within 1km of WCP. Similarly, condos 1.1km to 2km from PRP had 6.93% more resale value than condos within 1km of PRP.

In my personal opinion, this "phenomenon" could be due to the fact that condo developments already come with their own green spaces. Such amenities are one of the key reasons why people choose condo. Take D'Nest for example, a condo project 1.4km away from PRP. The resort-style project is developed with eco-friendliness in mind, and consists of several sky gardens located at several levels of each block among typical condo offerings. Hence, I believe that could be the reason why close proximity to green spaces did not impact the overall resale values of condos as much as we thought.

So, do green spaces really equate to better property value? Yes and no.

Singapore is committed to making the city sustainable and green. Pockets of green spaces have thus far created a city that integrates nature into various commercial and residential development types. They are more than just aesthetic and recreational opportunities. Green spaces offer immense benefits that affect not only individuals' physical and mental well-being, but also the overall property value.

One thing for sure is that we can see that while green spaces do contribute to property values, they are not the sole drivers. Factors such as distance to schools, amenities, and public transports are also key priorities that buyers and sellers consider when conducting a potential transaction. It is always wise to make informed decisions that come only with adequate research and study of the market. Hence, if you are looking to expand your property portfolio or are a first-timer homeowner, do not hesitate to engage our agents.

Views expressed in this article belong to the writer(s) and do not reflect PropNex's position.