Build-To-Order Flats and Their Impact on Existing Flats.

Abstract

This thesis examines the effect of new public housing projects in Singapore on the price of surrounding properties. Using a difference-in-difference specification combined with a hedonic price model, I find that the BTO projects have positive spillover effects on property valuations after the launch and again after the completion of the BTO project. These spillovers decrease with increasing distance from the BTO site. Across the different sub-samples, executive condominiums, condominiums, resale properties, and properties aged 0 to 10 years were found to respond more strongly. The impact was also greater when the region was largely developed, with no observable effect when the project was the youngest building in the region. Amenities or signals of future provision of amenities could have contributed to the price increase, but overall, the price gradient could not be confidently attributed to commonly known externalities found in the literature.