Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/219858
Title: THE IMPACT OF BIDDING BEHAVIOURS ON LAND VALUE: AN EMPIRICAL STUDY ON SINGAPORE GOVERNMENT LAND SALES
Authors: LUO ZHI HAN
Keywords: Real Estate
RE
Fan Yi
2017/2018 RE
Issue Date: 4-Jun-2018
Citation: LUO ZHI HAN (2018-06-04). THE IMPACT OF BIDDING BEHAVIOURS ON LAND VALUE: AN EMPIRICAL STUDY ON SINGAPORE GOVERNMENT LAND SALES. ScholarBank@NUS Repository.
Abstract: High land sales prices being achieved over the past few years has coincided with the increased participation of foreign developers with some winning bids setting new pricing benchmarks as part of the Singapore Government’s Land Sales Programme. The final winning bid is often construed as reflective of developers' optimism about future prospects for the real estate market. In this regard, this study aims to find out the strategic bidding behaviors of both local and foreign developers through investigating their bidding price determinations under Singapore’s first-price sealed-bid auction framework. This study utilizes GLS private residential land transaction records from 2005 to 2017 and applied Linear regression models to measure the results at both parcel level and the overall auction level. The regression result at the parcel level shows that, land value (winning bid) and price premium is positively correlated with broader market characteristics and the number of the bidders as predicted by the auction theory. While the presence of foreign developers has positive impact on land value growth and it has negative relationship with the Coefficient of Variation. This is probably due to wider variations of bids due to the entry of new bidders or average bid being pushed up by local developers whom motivated by the optimistic market sentiments or the fears of losing out. The results at the overall auction level shares some similarities, while the bidding prices shows negative relationships with Gross Plot Ratio and number of bidders. Additional heterogeneity tests also showed some time-series inconsistency as compared with the main findings due to changing market conditions as represented by external shocks and imposition of government policies in the real estate market.
URI: https://scholarbank.nus.edu.sg/handle/10635/219858
Appears in Collections:Bachelor's Theses

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