Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/223949
Title: EMPIRICAL EVIDENCE OF BUBBLE IN SINGAPORE OFFICE MARKET
Authors: TRAN THI CAM HA
Keywords: Real Estate
Issue Date: 1-Oct-2009
Citation: TRAN THI CAM HA (2009-10-01T10:06:30Z). EMPIRICAL EVIDENCE OF BUBBLE IN SINGAPORE OFFICE MARKET. ScholarBank@NUS Repository.
Abstract: The primary objective of this study is to test for the existence of bubble in Singapore office market. There is a considerable amount of literature on bubbles focusing on stock, residential and real estate market in general. However, little attention has been paid to office market. Moreover, office is one of the important property market sectors in the Singapore economy as the Republic is building itself as the financial hub of not only Southeast Asia but also Asia and the world. Being different from the previous studies in bubbles that were primarily qualitative and survey based, this study applies quantitative research method with time series data to empirically test for the existence of bubble. Four financial econometric models are used: Present Value Model, Co-integration test, Model for fundamental values and Variance bound test. Overall, this study shows that there is a positive bubble present during Asian Financial Crisis period (from early 1996 to late 1997) with the observed prices were substantially higher than corresponding fundamental values. A negative bubble is also detected during the period of two consecutive crises namely dot-com bubble and SARS (2000-2004). Currently, empirical evidence indicates that bubble is building up in Singapore office market and that the current price levels may not be sustainable. Keyword: Bubble, Singapore office market, Present Value Model, Co-integration test, A model for fundamental values, Variance bound test.
URI: https://scholarbank.nus.edu.sg/handle/10635/223949
Appears in Collections:Bachelor's Theses

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