Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/221952
Title: ADDITIONAL BUYER'S STAMP DUTY AND ITS IMPACT ON DEVELOPERS AND PROPERTY PRICES
Authors: WUN KAR MIN CARMEN
Keywords: Real Estate
RE
Sing Tien Foo
2017/2018 RE
Issue Date: 11-Dec-2017
Citation: WUN KAR MIN CARMEN (2017-12-11). ADDITIONAL BUYER'S STAMP DUTY AND ITS IMPACT ON DEVELOPERS AND PROPERTY PRICES. ScholarBank@NUS Repository.
Abstract: Singapore’s private housing prices have escalated sharply and quickly in a short span of 2 years after recovering from the 2007 Global Financial Crisis. Concerned about potential overheating in the market, the government took swift actions to intervene into the housing market in the late 2009. Since then, nine rounds of cooling measures have been introduced between 2009 and 2013 to curb property speculation. Additional Buyer’s Stamp Duty (ABSD) is one of the anti-speculative measures implemented to discourage speculative residential land hoarding by developers. In this policy, developers are required to complete and sell all housing units within five years from the date of land procurement. Remission of ABSD would be granted upon developers’ fulfilment of the time requisites. This study aims to evaluate the binding effects of the ABSD policy on developers’ pricing in new non-landed property launches. It is hypothesised that ABSD has a binding effect on property prices; and that the policy effect is even greater after the remission deadline. By using difference in differences (DID) methodology and using transacted prices obtained from Real Estate Information System (REALIS), we evaluate the ABSD policy effects on property prices controlling for hedonic attributes, spatial and time fixed effects. The results showed that the ABSD policy negatively impacts prices of non-landed private residential properties for properties subjected to the ABSD remission rules (treatment group). Prices of the treated properties (those affected by ABSD) were transacted at 5.85% lower than control group (properties unaffected by ABSD). Further, the robustness tests and heterogeneity tests support the negative policy effects. The results from the additional tests show that the binding effect of ABSD policy on property prices is greater after the remission deadline. Overall, this study provides evidences to the existing research that explores the effectiveness of anti-speculation measures on prices of new non-landed private property launches by developers.
URI: https://scholarbank.nus.edu.sg/handle/10635/221952
Appears in Collections:Bachelor's Theses

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