EFFECTS OF THE POLICY RESTRICTING CONCURRENT OWNERSHIP OF PUBLIC AND PRIVATE HOUSING

Abstract

Anti-speculation measures implemented in Singapore may not necessary yield negative effects on purchasers all the time. It might be possible that anti-speculation measures bring about positive effects as well. The restriction on concurrent onwership of public and private housing implemented on 30th August 2010 just might be one such example. It is postulated that the policy have a positive effect on HDB upgraders and it improves their upward mobility to own non-landed private housing. By using difference in differences methodology, a hedonic pricing model is adopted and the policy effects on HDB upgraders is measured using transacted prices obtained from Real Estate Information System (REALIS). The results showed that the policy has a positive effect on the non-landed housing purchase price of the HDB upgraders vis-à-vis other non-HDB buyers and the results are statistically significant. Robustness tests and heterogeneity tests are carried out and the results support the positive policy effects observed. Hence, this study proves that the policy restricting concurrent ownership has a positive effect on HDB upgraders and improves their upward mobility in the long run.