COOLING MEASURES AND THE GREEN HOUSING MARKET DYNAMICS
QUEK HOU YEE
QUEK HOU YEE
Citations
Altmetric:
Alternative Title
Abstract
Today, urbanity permeates most of the developed world, signifying promises of a better
life. In reality, the built environment is a key contributor of climate change bearing high
economic costs while threatening to disrupt and end the menial everyday lives. A
notable solution is the green buildings, an optimistic opportunity to reduce carbon
emission. But there is an existing literature gap on policy effects on the green
residential market dynamics as compared to the non-green market. Given higher green
premiums and comfortable living environments, green buildings may have lower
turnover rates, which suggest that in negative demand shocks, green buildings may
establish a stable market outcome. The paper addresses the literature gap as an
exploratory study investigating this presumption “whether PIDS-related policies have a
differentiated effect on the green over the non-green private non-landed residential
market”. In Singapore, Policy-Induced Demand Shocks (PIDS) are caused by cooling
measures that targets demand like the ABSD and sometimes, LTV limits. The research
design probes transacted prices and holding periods via a Hedonic Pricing and Flexible
Parametric Hazard models respectively within the new sale and resale markets.
The findings demonstrate that green projects are able to ensure a stable housing
market of lower turnover rates and price stability driven by economic fundamentals with
minimal policy strength than non-green projects. After a PIDS, the green new sale
residential market experiences a reduced green premium and shorter holding periods
than the non-green market. Stronger policies incite larger green premiums and longer
holding periods than previous rounds in the green new sale market. Within the resale
market, the green market after a PIDS experiences larger green premiums and longer
holding periods, which when accompanying stronger policies, grows in larger
magnitudes compared to previous rounds. Thus, given their socio-economic and
environmental benefits and stable market outcomes, the authorities should identify
actions to encourage green building developments in Singapore.
Keywords
RE, Real Estate, 2019/2020 RE, Tu Yong
Source Title
Publisher
Series/Report No.
Collections
Rights
Date
2020-05-14
DOI
Type
Dissertation