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Private residential price indices in Singapore: A matching approach

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  • Deng, Yongheng
  • McMillen, Daniel P.
  • Sing, Tien Foo

Abstract

We use a matching procedure to construct samples of private residential sales in Singapore for January 1995 to May 2010. Though the matching approach is similar to a repeat sales estimator in pairing each sale with the sale of a comparable property, sample sizes are much larger because the matched properties are not constrained to be identical in each period. An advantage of the matching procedure is that it makes it easy to characterize changes in the full distribution of quality-adjusted sales prices, rather than just the means. We find that the distribution of sales prices shifted much farther to the right at high prices than at lower prices for 1995–2010, and this pattern is particularly evident in the boom periods of 1996 and 2005–2007. The variance of the sale price distribution increased significantly during boom periods.

Suggested Citation

  • Deng, Yongheng & McMillen, Daniel P. & Sing, Tien Foo, 2012. "Private residential price indices in Singapore: A matching approach," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 485-494.
  • Handle: RePEc:eee:regeco:v:42:y:2012:i:3:p:485-494
    DOI: 10.1016/j.regsciurbeco.2011.06.004
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    More about this item

    Keywords

    Repeat sales; Matching; House prices; Price index;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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