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Demand restrictions; government interventions; resale public housing market; private housing market; housing wealth

Author

Listed:
  • Mi Diao
  • Yi Fan
  • Tien Foo Sing

Abstract

Singapore's government imposes demand restrictions in 2011 and 2013 disallowing Singaporean residents to concurrently own a private housing unit and a resale public housing flat. The restrictions, however, do not affect public housing owners, who fulfill the minimum occupation period requirement. This paper uses the policy shocks to set up a quasi-experiment to test if differential housing purchasing behaviors exist between the private housing and the public housing buyers. Using private housing transaction data between 2005 and 2015, we find that prices decline by 2.4% and 1.8% for the private housing owners’ purchases after the policy took effects in 2010 and 2013, respectively, relative to public housing owners' purchases. Public housing owners could be motivated by housing wealth accrued to their existing flats to pay higher prices in their private housing purchases. We also find stronger treatment effects in resale market, core central region, medium to high-end market, and market with large size units.

Suggested Citation

  • Mi Diao & Yi Fan & Tien Foo Sing, 2018. "Demand restrictions; government interventions; resale public housing market; private housing market; housing wealth," ERES eres2018_32, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2018_32
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    File URL: https://eres.architexturez.net/system/files/P_20180116072731_321.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Demand restrictions; government interventions; housing wealth; private housing market; resale public housing market;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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