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

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  • 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
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    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.
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    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.

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