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Public and private housing markets dynamics in Singapore: The role of fundamentals

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  • Chia, Wai-Mun
  • Li, Mengling
  • Tang, Yang

Abstract

Singapore housing market features a sizable public sector and a non-negligible private sector. This paper examines the interactions between these two sectors and the contributions of economic fundamentals, including demographics, financial constraints and land supply, to both public and private housing prices growth. We construct a dynamic general equilibrium model capturing the main demographic characteristics and housing market arrangements in Singapore, where residents can choose between public and private housing while nonresidents only have access to the private housing. We find that economic fundamentals can account for about 47.6% of the public housing price growth from 1990 to 2015 and 81.3% of the private housing price growth from 1980 to 2015, in which demographics have contributed the most, accounting for about 60.8 and 73.2% to the public and private housing prices increase, respectively.

Suggested Citation

  • Chia, Wai-Mun & Li, Mengling & Tang, Yang, 2017. "Public and private housing markets dynamics in Singapore: The role of fundamentals," Journal of Housing Economics, Elsevier, vol. 36(C), pages 44-61.
    • Handle: RePEc:eee:jhouse:v:36:y:2017:i:c:p:44-61
    DOI: 10.1016/j.jhe.2017.03.001
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    Cited by:

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    2. Huang, Naqun & Yang, Zhenlin, 2021. "Spatial dynamic models with short panels: Evaluating the impact of purchase restrictions on housing prices," Economic Modelling, Elsevier, vol. 103(C).
    3. Fathali Firoozi & Abolhassan Jalilvand & Donald Lien & Mikiko Oliver, 2020. "The Impact of Population Aging on Housing Prices: A Comparative Study of Singapore and the U.S," International Real Estate Review, Global Social Science Institute, vol. 23(4), pages 467-482.
    4. Shengguo Li & Jiaqi Liu & Jichang Dong & Xuerong Li, 2021. "20 Years of Research on Real Estate Bubbles, Risk and Exuberance: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(17), pages 1-24, August.
    5. Hu, Genhua & Fan, Gang-Zhi, 2022. "Empirical evidence of risk contagion across regional housing markets in China," Economic Modelling, Elsevier, vol. 115(C).
    6. Xue Han & Changchun Feng, 2024. "Effects of Affordable Housing Land Supply on Housing Prices: Evidence from 284 Cities in China," Land, MDPI, vol. 13(5), pages 1-17, April.

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    More about this item

    Keywords

    Public housing; Private housing; Fundamentals; Demographics;
    All these keywords.

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • 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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