Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/223622
Title: THE EFFECT OF COOLING MEASURES ON THE COLLECTIVE SALE MARKET
Authors: LUI KIT MENG JUSTIN
Keywords: Real Estate
RE
Alice Christudason
2019/2020 RE
Collective Sale
Cooling Measures
En-Bloc
Issue Date: 2019
Citation: LUI KIT MENG JUSTIN (2019). THE EFFECT OF COOLING MEASURES ON THE COLLECTIVE SALE MARKET. ScholarBank@NUS Repository.
Abstract: In 2019, the Singapore government announced that it would pro-actively use cooling measures to regulate the price of the Singapore residential market (Kalpana, 2018). However, these measures have had unintended consequences. The collective sale market has suffered due to these cooling measures. Since the 2018 cooling measures were implemented, more than 30 collective sale sites were unsuccessful. The collective sale market is of unique importance for two reasons. One, collective sales provide an alternative channel of sale, thus increasing their property rights (Khadijah & Zakiah, 2017). Two, the redevelopment of collective sale sites can yield more units for land-scarce Singapore. This study’s first objective is thus, to investigate the causality between the 2018 cooling measures and diminishing collective sales. For this, difference-in-difference analysis was applied. Another objective was to determine if the cooling measures were the greatest challenge to a successful collective sale. A face-to-face survey was conducted among residents of failed collective sales. The last objective would be to suggest a policy alternative to alleviate the consequences. The difference-in-difference had a r-squared value of 71% in relating the reduction in collective sales to the 2018 cooling measures, and the survey results affirmed that the cooling measures were the largest impediment. While rights of sale of the owners and land rejuvenation was diminished generally, further analysis showed that larger sites were more unfavourably affected. The paper therefore, suggested a change to the 25% remissible ABSD, from the entire site to a pro-rated figure to the unsold number of units as a possible balanced solution.
URI: https://scholarbank.nus.edu.sg/handle/10635/223622
Appears in Collections:Bachelor's Theses

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