Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/219735
Title: THE DETERMINATION OF BID PRICES IN PUBLIC LAND AUCTIONS � THE SINGAPORE EXPERIENCE
Authors: PEH MEI QIN
Keywords: Real Estate
Master (Real Estate)
Ho Kim Hin David
Land auctions
Winner's curse
Yield curve
Issue Date: 5-Jan-2012
Citation: PEH MEI QIN (2012-01-05). THE DETERMINATION OF BID PRICES IN PUBLIC LAND AUCTIONS � THE SINGAPORE EXPERIENCE. ScholarBank@NUS Repository.
Abstract: This paper examines the key determinants of bid prices for first-price sealed bid public land auctions within the Singapore context. Key explanatory variables like site attributes, buyer characteristics, degree of competition, stock market performance and yield spread, are regressed against the winning bid price premium. The empirical results were based on 193 public land auctions under the Singapore Sales of Sites program, held from 1996 to 2011. The results show that contrary to the auction theory; joint competition has no significant impact on the winning bid price premium. On the one hand, other aspects of buyer characteristics, namely the experience of the developers and publicly-listed firms tend to increase the optimal bid of the winner. The regression results also show that an increase in the number of bidders in the auction results in a higher winning bid. On the other hand, it is also discovered that both the yield spread and stock market performance, characterizing the general business sentiments, affect the bidding strategies of developers. Finally, the results eliminate any evidence of plot-age and show that the winning bid does not depend on the land size nor plot ratio.
URI: https://scholarbank.nus.edu.sg/handle/10635/219735
Appears in Collections:Master's Theses (Restricted)

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