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Dynamic pricing in the Singapore condominium market

Author

Listed:
  • Fesselmeyer, Eric
  • Liu, Haoming

Abstract

Dynamic pricing strategies are likely an important consideration of Singapore condominium developers because of the durability of condominiums, price transparency, and the long sales period. While we do not observe any systematic relationship between the new sale prices and time of purchase, we do find that quality-adjusted price increases and the quality of units purchased decreases over the new sale period. These results suggest that condominium developers allow early buyers to purchase high quality units at discounted prices but do not extend the price discount to later buyers of low quality units.

Suggested Citation

  • Fesselmeyer, Eric & Liu, Haoming, 2014. "Dynamic pricing in the Singapore condominium market," Economics Letters, Elsevier, vol. 124(1), pages 147-150.
    • Handle: RePEc:eee:ecolet:v:124:y:2014:i:1:p:147-150
    DOI: 10.1016/j.econlet.2014.04.022
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    References listed on IDEAS

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    More about this item

    Keywords

    Dynamic pricing; Housing markets; Repeated sales method;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • 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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