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The Dynamics of the Singapore Private Housing Market

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  • Yong Tu

    (Department of Real Estate, School of Design and Environment, National University of Singapore, 10 Kent Ridge Crescent, Singapore 119260, tuyong@nus.edu.sg)

Abstract

In this paper, a dynamic stock flow model is modified and applied to the Singapore private housing market. Two empirical models are then constructed, which offer an explanation for the dynamic patterns of both real private housing prices and new housing construction. In the long run, movements in the real GDP per capita and the total housing stock are found to have significant impacts on real housing prices, while the user cost, the public resale housing prices and the autocorrelation of housing prices with one lag explain most of the short-run dynamics of real housing prices. On the supply side, the long-run price elasticity of new housing construction is 1.31. It is also found that long-run new housing construction drops 6.5 per cent for every 1 per cent increase in the total housing stock.

Suggested Citation

  • Yong Tu, 2004. "The Dynamics of the Singapore Private Housing Market," Urban Studies, Urban Studies Journal Limited, vol. 41(3), pages 605-619, March.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:3:p:605-619
    DOI: 10.1080/0042098042000178708
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    References listed on IDEAS

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    Cited by:

    1. Tilak Abeysinghe & Jiaying Gu, 2016. "Estimating fundamental and affordable housing price trends: a study based on Singapore," Applied Economics, Taylor & Francis Journals, vol. 48(49), pages 4783-4798, October.
    2. Hyung Min Kim, 2017. "Ethnic connections, foreign housing investment and locality: a case study of Seoul," European Journal of Housing Policy, Taylor and Francis Journals, vol. 17(1), pages 120-144, January.

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