THE BEHAVIOUR OF HOUSING TIME-ON-MARKET UNDER CHANGING MARKET CONDITIONS

Abstract

This study examines the impact ofchanging market conditions on the time on the market (TOM) in the Singapore public residential housing resale market. Using a duration model methodology, and data from a single brokerage agency to control for brokerage incentive effects, the studyfinds changing market conditions have an influence on TOM. Housing market indices are shown to significantly affect buying and selling behaviour ofprivate and public houses and consequently affect TOM. Increasing interest rates and unemployment is found to extend housing TOMs but only the lower segment of the market is significantly affected. The study provides some evidence that rising markets generally shortens the marketing duration ofpublicflats.