Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/224057
Title: IMPACT OF IMMIGRATION ON SINGAPORE'S RESIDENTIAL PROPERTY MARKET
Authors: CHOO CHIA JEAN
Keywords: Real Estate
Lum Sau Kim
RE
2017/2018 RE
Issue Date: 30-Apr-2018
Citation: CHOO CHIA JEAN (2018-04-30). IMPACT OF IMMIGRATION ON SINGAPORE'S RESIDENTIAL PROPERTY MARKET. ScholarBank@NUS Repository.
Abstract: In 2013, the government released the policy paper: Population White Paper. There has been backlash to the Population White Paper, much of the public outrage has been fuelled over the years due to rising tensions from increased competition for resources. One of the central issues was increasingly unaffordable housing due to immigration influx. This study aims to dispel such claims by exploring the relationship between immigration influx and property prices and rentals. The study involves analysing Immigration numbers, housing price indices and rental indices between 1996 and 2016 in quarterly periods. To determine the long run and short run association, the following methodology is utilized: the Philips Peron Unit Root test to determine if all variables are integrated at order I(1), followed by the Johansen Cointegration test to identify long-run association, and lastly, the Vector Error Correction Model (VECM) is applied to examine the speed of adjustment to long-run equilibrium and the short-run relationship between variables. Findings suggest that there is positive long-run relationship between immigration inflow and public resale flat prices and private rentals which mirror the findings of overseas literature. Significant positive short-run relation was also found between immigration inflow and public resale flat prices, and housing rents. An interesting finding was that a negative long-run relationship was found between immigration inflow and private residential prices, this finding deeply contrasts with housing market fundamentals and existing literature done on this subject matter. The author attributes exogenous factors such as state intervention on the housing market, cooling measures to be a plausible reasons for this divergent finding. Nonetheless, there may be some truth to the claims that immigration drives up the property market. The findings can aid policy makers in formulating relevant policies relating to immigration and housing.
URI: https://scholarbank.nus.edu.sg/handle/10635/224057
Appears in Collections:Bachelor's Theses

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