ELECTION EFFECTS ON RESALE HDB PRICES

Abstract

Housing Development Board (HDB) flats house the majority of the population. Their values constitute a substantial portion of household wealth. This paper examines the political economy of HDB resale flats. Hedonic and difference-in-differences regressions reveal that HDB flats in opposition wards transact at discounts to those in People’s Action Party (PAP) wards. Treatment effects are applied through the election dates. The Main Upgrading Programme (MUP) is also found to have a positive impact on HDB resale prices. A multinomial logistic regression shows that opposition wards face substantially reduced priority for the MUP. This is one of the reasons why opposition resale HDB flats transact at discounts.