Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/224117
Title: DYNAMIC PRICING STRATEGY IN NEW RESIDENTIAL DEVELOPMENTS IN SINGAPORE
Authors: WANG, YULING
Keywords: Real Estate
Li Qiang
2018-2019 RE
RE
New Residential Developments
Dynamic Pricing
Pricing Strategies
Anti-Speculative Measures
Issue Date: 14-May-2019
Citation: WANG, YULING (2019-05-14). DYNAMIC PRICING STRATEGY IN NEW RESIDENTIAL DEVELOPMENTS IN SINGAPORE. ScholarBank@NUS Repository.
Abstract: One of the unique features of the residential property sector in Singapore is the long duration of the selling process of new housing developments, which could start from four years before the project completion until two years after, providing an opportunity for private residential developers to adopt dynamic pricing strategies. This study aims to deepen the understanding of developers’ pricing behaviours by examining the use of dynamic pricing in newly built housing units. This study was conducted using several empirical models to test whether pricing by developers systematically varies over the first eight quarters after launch. The results indicate that residential developers in Singapore are adopting a pricing strategy in which they sell the higher quality units at discounted prices in the initial selling stage to stimulate sales. Over the selling process, they gradually raise the quality-adjusted prices for later buyers. On the other hand, several rounds of anti-speculative measures were imposed by the government to restrain speculative demand in recent years. Therefore, this study intends to investigate the spill-over effects of cooling measures on developers’ dynamic pricing behaviours due to market demand changes. A smaller variation in quality-adjusted prices over the first eight quarters of sales was observed for units which were initially purchased after the implementation of cooling measures, compared to units with its first purchase before the policy intervention. While the developers may not have significantly changed the rate of increase in nominal new housing prices over the selling period, they reduced the quality variation between units sold in the earlier stage and the later stage after the policy implementation.
URI: https://scholarbank.nus.edu.sg/handle/10635/224117
Appears in Collections:Bachelor's Theses

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