PROPERTY SPECULATION IN SINGAPORE

Abstract

Property speculation is viewed by the public as the major cause of rising prices. Hence, it is very unpopular. The main purpose of this study is to investigate the nature of property speculation in Singapore, and its effects on prices. After reviewing the relevant literature, the study found that there is no consensus on the definition of property speculation. However, because of the need for a clear definition to delineate the scope of the study, a definition of property speculation within the context of Singapore has been suggested. Furthermore, after analyzing the available data with the use of a stabilization model, the study found that property speculation does not contribute significantly to price variations in Singapore. However, it does have the effect of shoring property prices.