Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/221995
Title: FOREIGN BUYERS AND THE SINGAPORE HOUSING PRICE
Authors: HOW RUI YING PAMELA
Keywords: foreign buyer
housing price
ABSD
market segment
RE
Real Estate
Tu Yong
2019/2020 RE
Issue Date: 2019
Citation: HOW RUI YING PAMELA (2019). FOREIGN BUYERS AND THE SINGAPORE HOUSING PRICE. ScholarBank@NUS Repository.
Abstract: In the founding days of independent Singapore, foreign investments into Singapore has been pivotal in ensuring the continuous growth of Singapore’s economy. The scope of foreign investments in Singapore was wide, and one aspect would be the Singapore residential market. In a bid to curb speculative foreign investors, foreign restrictive measures implemented into the property market dates back to 1973 and has continued to be renewed and introduced even till today. With a dramatic increase in private property prices alongside the surge in foreign buyers in the recovery period after the 2008 Global Financial Crisis, interest of speculators peaked and worries of a potential housing bubble arose. An assortment of cooling measures was introduced by the Singaporean government to dampen irrational investment speculations and maintain housing affordability. However, it was only in 2011 that the government started to target foreign buyers and non-individuals by enforcing the Additional Buyer’s Stamp Duty (ABSD), which was effective in cutting down the number of foreign buyers of Singapore private residential properties. The fluctuations in the number of foreign buyers has effects on the housing prices in different market segments, namely the Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR). This study aims to analyse the impact of the number of foreign buyers on the prices of Singapore non- landed private housing in general and the different market segments. The main methodology applied in this paper is the Time Series Model, which has been utilised in many studies pertaining to the real estate market. Without accounting for ABSD, results from the study show that foreign buyers indeed affect home prices and had the greatest impact on CCR PPI by 4.31%. All results were statistically significant. After accounting for Round One of ABSD, ABSD seemed to be effective for CCR and RCR but not OCR as the effect of foreign buyers are almost negligible in both market segments. Round Two of ABSD showed ineffectiveness, especially in CCR and RCR. Effectiveness could have been diluted due to ABSD rates being unchanged for almost five years, which prompted a third upwards revision of ABSD rates. Influence on CCR was recorded to be the highest. However, only three quarters were studied, which might not be enough to reflect the full impact of Round Three of ABSD. All results were generally statistically significant.
URI: https://scholarbank.nus.edu.sg/handle/10635/221995
Appears in Collections:Bachelor's Theses

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