http://www.theedgeproperty.com.sg/co...rby-properties

Do cemeteries impact prices of nearby properties?

The award of a plot of land in Sengkang to Eternal Pure Land, which planned to develop it into a commercial columbarium, drew the ire of prospective residents at a nearby HDB project. The government subsequently withdrew the award and called for a fresh tender for the building of a Chinese temple. On Oct 27, Thye Hua Kwan Moral Society was awarded the 21,500 sq ft site with its top bid of $6 million.

Do cemeteries and columbariums lower nearby property values? An analysis of historical transactions for HDB flats near Yin Foh Kuan Cemetery and Bright Hill columbarium and crematorium suggests they do.



Yin Foh Kuan Cemetery at Holland Close

HDB flats at 5, 6 and 32 Holland Close and 7 and 7A Commonwealth Avenue, which are fronted by Yin Foh Kuan Cemetery, were transacted at lower prices compared with similar properties in the vicinity. Since 2002, four-room HDB flats in blocks facing the cemetery have been 2.3% cheaper on average than those farther away. The price gap was larger for five-room flats, at 5.5% cheaper.

In 2014, a four-room flat on a high floor was sold at $700,000 while a similar unit farther away went for $735,000. Year to date, the average price for four-room flats on low floors was $648,000 in blocks fronted by the cemetery and $670,000 in blocks that do not.

There were no transactions involving five-room flats fronted by the cemetery in 2014 and 2015. In 2012, a low-floor unit fronting the cemetery changed hands at $770,000 while a similar unit farther away fetched more than $800,000.



Yin Foh Kuan Cemetery



Bright Hill columbarium and crematorium

HDB blocks 404, 405 and 408 Sin Ming Avenue in Bishan face the Bright Hill columbarium and crematorium, although they are not directly fronted by it. All the transactions in the three blocks involved five-room and executive flats. Based on historical transactions from 2002 to date, five-room flats in these blocks were 4.4% cheaper on average than those in nearby blocks that do not face Bright Hill.

In 2014, five-room flats on low floors were sold at an average price of $590,000, lower than the $608,000 seen for a similar unit farther away. This year, a mid-floor unit facing the columbarium went for $642,000 while a similar unit farther away fetched $690,000.

Due to limited data, we are unable to test the price difference at statistically significant levels. Our exercise used the stratified sampling method based on HDB resale prices from 2002 until today. Each comparison point was made between HDB flats of similar sizes and floor levels and sold in the same year, resulting in limited data within each criterion.



Proximity to cemeteries may increase property prices

http://www.theedgeproperty.com.sg/co...rby-properties