IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v21y2004i2p143-159.html

Upgrading programme in public housing: an assessment of price and liquidity enhancements

Author

Listed:
  • Sau Kim Lum
  • Tilin Koh
  • Seow‐Eng Ong

Abstract

Upgrading programmes that aim to improve living conditions and enhance property values are often evaluated qualitatively. We propose a methodology for determining the market impacts of such projects and apply it for assessing the Main Upgrading Programme (MUP) in Singapore. This is a systematic S$15 billion project undertaken since 1992 to improve the condition of older public housing units. Both price and liquidity effects are examined. We find evidence that the programme has achieved its objective of value enhancement. Units that have completed upgrading fetch a significantly higher price while units that have been selected and successfully polled for upgrading fetch a small price premium. However, units undergoing upgrading sell at a statistically insignificant discount, ostensibly due to the disutility associated with construction. The MUP has little impact on the saleability of upgraded flats. The trade‐off in liquidity is seen only for units that have completed MUP. These take a longer time to sell.

Suggested Citation

  • Sau Kim Lum & Tilin Koh & Seow‐Eng Ong, 2004. "Upgrading programme in public housing: an assessment of price and liquidity enhancements," Journal of Property Research, Taylor & Francis Journals, vol. 21(2), pages 143-159, November.
    • Handle: RePEc:taf:jpropr:v:21:y:2004:i:2:p:143-159
    DOI: 10.1080/0959991042000328829
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0959991042000328829
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0959991042000328829?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jonathan McCarthy & Richard Peach, 2004. "Are home prices the next \\"bubble\\"?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 1-17.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sue, Eddie D.W. & Wong, Wei-Kang, 2010. "The political economy of housing prices: Hedonic pricing with regression discontinuity," Journal of Housing Economics, Elsevier, vol. 19(2), pages 133-144, June.
    2. Sam Il Myoung Hwang & Leo Ma, 2023. "Top‐floor discounts in residential buildings: Evidence from South Korea," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(2), pages 441-469, March.
    3. Lee, Nai Jia & Ong, Seow Eng, 2005. "Upward mobility, house price volatility, and housing equity," Journal of Housing Economics, Elsevier, vol. 14(2), pages 127-146, June.
    4. Diao, Mi & Sing, Tien Foo & Zhang, Xiaoyu, 2024. "The political economy of public housing upgrading programs," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 369-389.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edward L. Glaeser & Joseph Gyourko, 2006. "Housing Dynamics," NBER Working Papers 12787, National Bureau of Economic Research, Inc.
    2. Holly, Sean & Pesaran, M. Hashem & Yamagata, Takashi, 2010. "A spatio-temporal model of house prices in the USA," Journal of Econometrics, Elsevier, vol. 158(1), pages 160-173, September.
    3. Visar Hoxha & Alenka Temeljotov Salaj, 2014. "Fundamental Economic Factors That Affect Housing Prices: Comparative Analysis between Kosovo and Slovenia," Management, University of Primorska, Faculty of Management Koper, vol. 9(4), pages 323-348.
    4. Benati, Luca, 2021. "Leaning against house prices: A structural VAR investigation," Journal of Monetary Economics, Elsevier, vol. 118(C), pages 399-412.
    5. Lunde, Jens, 2006. "The owner-occupiers’ capital structure during a house price boom," Working Papers 2005-3, Copenhagen Business School, Department of Finance.
    6. Perry Singleton, 2015. "Health, Medical Innovation, and Disability Insurance: A Care Study of HIV Antiretroviral Therapy," Center for Policy Research Working Papers 182, Center for Policy Research, Maxwell School, Syracuse University.
    7. Andrew Leventis, 2006. "Removing Appraisal Bias from a Repeat-Transactions House Price Index – A Basic Approach," FHFA Staff Working Papers 06-01, Federal Housing Finance Agency.
    8. Ansgar Belke & Marcel Wiedmann, 2005. "Boom or Bubble in the US Real Estate Market?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 260/2005, Department of Economics, University of Hohenheim, Germany.
    9. Larraz-Iribas, Beatriz & Alfaro-Navarro, Jose-Luis & Rodriguez-Aragon, Francisco, 2008. "Asymmetric Behaviour of Spanish Regional House Prices: A Multivariate Approach," The Journal of Economic Asymmetries, Elsevier, vol. 5(2), pages 81-104.
    10. Konstantin Kholodilin, 2015. "Speculative Bubbles in Urban Housing Markets in Germany," ERSA conference papers ersa15p67, European Regional Science Association.
    11. Garner, Thesia I. & Verbrugge, Randal, 2009. "Reconciling user costs and rental equivalence: Evidence from the US consumer expenditure survey," Journal of Housing Economics, Elsevier, vol. 18(3), pages 172-192, September.
    12. Hott, Christian, 2015. "A model of mortgage losses and its applications for macroprudential instruments," Journal of Financial Stability, Elsevier, vol. 16(C), pages 183-194.
    13. Elias Oikarinen & Steven Bourassa & Martin Hoesli & Janne Engblom, 2017. "Revisiting the House Price-Income Relationship," ERES eres2017_173, European Real Estate Society (ERES).
    14. repec:wyi:journl:002167 is not listed on IDEAS
    15. Markus K. Brunnermeier & Christian Julliard, 2008. "Money Illusion and Housing Frenzies," The Review of Financial Studies, Society for Financial Studies, vol. 21(1), pages 135-180, January.
    16. Andrew Kish, 2006. "Perspectives on recent trends in consumer debt," Consumer Finance Institute discussion papers 06-05, Federal Reserve Bank of Philadelphia.
    17. Karl E. Case & Robert J. Shiller & Anne K. Thompson, 2012. "What Have They Been Thinking" Home Buyer Behavior in Hot and Cold Markets -- A 2014 Update," Cowles Foundation Discussion Papers 1876R, Cowles Foundation for Research in Economics, Yale University, revised Mar 2015.
    18. Yongqiang Chu, 2014. "Credit constraints, inelastic supply, and the housing boom," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(1), pages 52-69, January.
    19. repec:tur:wpaper:2 is not listed on IDEAS
    20. Marfatia Hardik A., 2021. "Modeling House Price Synchronization across the U.S. States and their Time-Varying Macroeconomic Linkages," Journal of Time Series Econometrics, De Gruyter, vol. 13(1), pages 73-117, January.
    21. Khandani, Amir E. & Lo, Andrew W. & Merton, Robert C., 2013. "Systemic risk and the refinancing ratchet effect," Journal of Financial Economics, Elsevier, vol. 108(1), pages 29-45.
    22. Koetter, Michael & Poghosyan, Tigran, 2008. "Real estate markets and bank distress," Discussion Paper Series 2: Banking and Financial Studies 2008,18, Deutsche Bundesbank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:21:y:2004:i:2:p:143-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.