Price Discovery between Private and Public Housing Markets

Ong, Seow Eng; Sing, Tien Foo

doi:10.1080/00420980220099069

Cited by 42 publications

(42 citation statements)

References 37 publications

(24 reference statements)

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“…A more detailed discussion about Singapore housing market structure can be seen in both Ong and Sing (2002) and Bardhan et al (2003). The data with hedonic characteristics used in this paper are collected from the Singapore Institute of Surveyors and Valuers (SISV) transaction database.…”

Section: The Characteristics Of the Condominium Transaction Datamentioning

confidence: 99%

A Spatio-Temporal Autoregressive Model for Multi-Unit Residential Market Analysis*

Sun

2005

J Real Estate Finan Econ

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By splitting the spatial effects into building and neighborhood effects, this paper develops a two order spatio-temporal autoregressive model to deal with both the spatio-temporal autocorrelations and the heteroscedasticity problem arising from the nature of multi-unit residential real estate data. The empirical results based on 54,282 condominium transactions in Singapore between 1990 and 1999 show that in the multi-unit residential market, a two order spatio-temporal autoregressive model incorporates more spatial information into the model, thus outperforming the models originally developed in the market for single-family homes. This implies that the specification of a spatio-temporal model should consider the physical market structure as it affects the spatial process. It is found that the Bayesian estimation method can produce more robust coefficients by efficiently detecting and correcting heteroscedasticity, indicating that the Bayesian estimation method is more suitable for estimating a real estate hedonic model than the conventional OLS estimation. It is also found that there is a trade off between the heteroscedastic robustness and the incorporation of spatial information into the model estimation. The model is then used to construct building-specific price indices. The results show that the price indices for different condominiums and the buildings within a condominium do behave differently, especially when compared with the aggregate market indices. Copyright Springer Science + Business Media, Inc. 2005spatio-temporal autocorrelation, spatio-temporal model, heteroscedasticity, Gibbs Sampling, Bayesian, Singapore condominium market,

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Section: The Characteristics Of the Condominium Transaction Datamentioning

confidence: 99%

A Spatio-Temporal Autoregressive Model for Multi-Unit Residential Market Analysis*

Sun

2005

J Real Estate Finan Econ

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“…This positive relationship implies that macroeconomic performance may directly affect the would-be home-buyers's housing affordability. Ong and Sing (2002) provides evidence that real GDP is a significant variable reflecting the impact of long-run economic performance on the housing market. From the third quarter of 1986 until end of 1996, the growth of Singapore economy has been strong.…”

Section: Model Specificationmentioning

confidence: 99%

“…Ho and Tay (1993) developed a system of six simultaneous equations for the supply of and demand for private residential properties in Singapore in a two-stage least squares process. Other studies include Ong and Sing (2002) on price discovery between private and public housing market using a Granger causality error-correction model and Sing (2001) on the dynamics of the condominium market in Singapore.…”

Section: Literaturesmentioning

confidence: 99%

Structural Change Modeling of Singapore Private Housing Price in Simultaneous Equation Model

Huang¹,

Zhang²

2012

JFRM

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This paper investigates the structural change behavior of Singapore's private housing market and in particular the impact of government policies on housing price determination. A structural model of price is established and the "Regressive Segmentation (RS)" method is applied to detect the changing points without prior knowledge of the structural changes. Our study shows that the changing points indicated by the RS method are consistent with the timing of the policy changes.

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“…The HDB units accommodate over 80% of Singapore's resident population (Teo and Kong, 1997). But the dream of becoming a private homeowner is attracting a significant proportion of public homeowners to upgrade to private housing (Ong and Sing 2002). In Singapore those who purchase the housing units in the public sector are not regarded as private homeowners.…”

mentioning

confidence: 99%

“…Public housing in Singapore is managed by the Housing Development Board (HDB). Transactions of HDB units could take place through the direct allocation from the HDB or through a secondary market-the HDB resale market (Ong and Sing, 2002). The prices in the HDB resale and private housing markets are both determined by the market forces, except that foreigners are not eligible to buy HDB units in the HDB resale market.…”

mentioning

confidence: 99%