Public Transport, Noise Complaints, and Housing: Evidence from Sentiment Analysis in Singapore

Forthcoming Journal of Regional Science

52 Pages Posted: 18 Mar 2021

See all articles by Yi Fan

Yi Fan

National University of Singapore (NUS) - Department of Real Estate

Ho Pin Teo

National University of Singapore (NUS) - Department of Building

Wayne Xinwei Wan

University of Cambridge - Department of Land Economy

Date Written: December 26, 2020

Abstract

This paper investigates the effect of a new bus route on noise complaints of residents and the influence of noise on housing price. To overcome the challenge of mapping noise data with subjective emotion, we use a novel data source—text-based noise complaint records from residents in a town in Singapore—and apply natural language processing (NLP) tools to conduct sentiment analysis. To address the endogeneity concern regarding the bus route, we use a hypothetical least cost path as an instrument for the existing bus route. We find that living closer to the bus route for every 100 meters increases noise complaints by around 10 percentage points, and the effect is more severe on medium floor levels (5th-8th floors) and near bus stops (within 100 meters). We further link noise with housing price and discover a price reduction of 3% with a 1-scale-point increase in noise complaints. This implies that bus noise offsets 17.8% of the benefit from convenience, which sheds light on the importance of noise insulation in transit-oriented developments.

Keywords: noise, public transport, sentiment analysis, housing

JEL Classification: R41, Q53, R30

Suggested Citation

Fan, Yi and Teo, Ho Pin and Wan, Wayne Xinwei, Public Transport, Noise Complaints, and Housing: Evidence from Sentiment Analysis in Singapore (December 26, 2020). Forthcoming Journal of Regional Science, Available at SSRN: https://ssrn.com/abstract=3776488

Yi Fan (Contact Author)

National University of Singapore (NUS) - Department of Real Estate ( email )

United States

Ho Pin Teo

National University of Singapore (NUS) - Department of Building

United States

Wayne Xinwei Wan

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

HOME PAGE: http://xinweiwan.weebly.com

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