THE IMPACTS OF NEW RESIDENTIAL CONSTRUCTION ON THE EXISTING RESIDENTIAL HOUSING VALUE IN SINGAPORE

Abstract

The sales data of 1,129 private condominiums located in or near district 10 were obtained from the SISV sales database. Sales transactions that took place from the first quarter of 1998 to the fourth quarter of 2002 were taken into account. The regional economic crises occurred during the period of (1999 - 2002) and it was inevitable that Singapore's economy was affected by it. As a result the property market slowed down and there was a decrease in the number of new constructions as shown in the statistics. The study by Tang (1996) has shown that the relationship between the changes in the prices of condominiums and the factors affecting them differ over the period of regional economic crises. Therefore our research has taken this time factor into account. Multiple regression models in Tang's hedonic analysis of housing prices has also proven that floor area, storey height, tenure of development and location are significant factors in influencing the selling prices. These factors are also considered in the course of our study.