INTRA-PRICING OF EXECUTIVE CONDOMINIUMS IN SINGAPORE

Abstract

This study seeks to ascertain the impact of internal spatial attributes on the value of new Executive Condominium (EC) units. The basic hypotheses are that favourable internal spatial attributes increases property value, and vice versa. The hypotheses are operationalized through statistical analysis (via the hedonic model) of 9,042 new sales transactions from 23 ECs. The results provide strong evidence that internal spatial attributes have significant impact on the intra-pricing of EC units. As expected, EC units with better views command a premium. Specifically, housing units facing the swimming pool enjoy a 5.13% premium over a similar unit without pool view. Units located on the higher floors are also priced significantly higher, although units located on the top most floors is priced at a discount of 3.73%. Housing units exposed to traffic noise and pollution in contrast sold at a 1.19% discount. With respect to the orientation, apartment units facing afternoon sun were priced at a marginal discount of 0.50% while unit facing the morning sun were priced at a premium of 2.43%. Finally, the study observed that house numbers appear to have a prevalent effect on EC pricing. Lucky-numbered units were priced at a marginal 0.60% premium while unlucky- numbered units were priced at a 1.49% discount.