IMPACTS OF THE 13 JANUARY 2011 ANTI-SPECULATION MEASURES ON THE PRIVATE HOUSING MARKET

Abstract

This study investigates the impacts of the property anti-speculation measures introduced by the Government on 13 January 2011. In doing so, it determines general sentiments to the deterrent measures and analyzes impacts on various stakeholders including home buyers, speculators and businesses. Previous empirical studies in Hong Kong and the US have found similar characteristics in property speculation and housing bubbles. However, these factors need to be examined within the specific economic, social and political context of different cities. In this study, the variables are employed to investigate whether cooling measures have similar significant impacts on the demand and supply of the dense and highly regulated Singapore residential market. The data used consist of surveys with condominium buyers and agents, together with empirical models to support the findings. Empirical evidence confirms the negative relationship between property anti-speculation measures and demand for housing. Nevertheless, the study also shows that demand for private residential is largely affected by other factors besides government regulations. Genuine home purchasers constitute a substantial proportion of private residential demand. Results indicate that the anti-speculation measures impacted mainly the property investors and speculators.