Price strategy and time-on-market in high-rise multiple-unit residential developments in Singapore

Abstract

This thesis focuses on the price strategy and time tradeoff for new residential developments where developer motivations differ substantially from individual seller motivations. There are two research objectives: firstly, it examines the factors affecting time-on-market (TOM). By using the information in listing and selling prices, we evaluate how the two measures of overpricing affect TOM. The similar results of two measures suggest that the developers adopt the appropriate price strategy in the Singapore condominium market. In addition, a theoretical model on the price and time tradeoff is established for new developments sale. Our theoretical and empirical analysis show that the overpricing strategy does not pay off but leads to longer TOM. Secondly, it concentrates on the extent to which sellers are willing to compromise on the price if properties stay too long in the market. Competitor behavior that few previous studies focus on is also considered in the thesis.