Disamenities of living close to transit tracks: Evidence from Singapore's MRT system

Abstract

<p>This study empirically tests how disamenities associated with Mass Rapid Transit (MRT) tracks affect public housing prices in Singapore. Residents living near aboveground rail tracks are more affected by MRT train noise than those living near underground rail tracks. Prices of public housing flats near the aboveground tracks are higher than those near the underground tracks by 3%–4% for every 1 km away from the MRT rail tracks. We use the erection of <a href="https://www.sciencedirect.com/topics/earth-and-planetary-sciences/noise-barrier" title="Learn more about noise barriers from ScienceDirect's AI-generated Topic Pages">noise barriers</a> on the selected segments of MRT tracks to mitigate noise effects as the shock in the models. The results show that housing prices increased by 2% and 3% for every 1 km reduction in distance to the segments of MRT tracks with new <a href="https://www.sciencedirect.com/topics/earth-and-planetary-sciences/noise-barrier" title="Learn more about noise barriers from ScienceDirect's AI-generated Topic Pages">noise barriers</a> after the announcement and completion of the projects, respectively. The welfare gains of the noise barrier project accrued to public housing residents near the noise-mitigating segments of rail tracks are estimated to be more than 700 million Singapore dollars.</p>