HOME SHARING SERVICES AS A DISRUPTION TO SINGAPORE’S PRIVATE HOUSING MARKET.

Abstract

In the last decade, Singapore has been facing an influx of Home Sharing Services into the property market. Such Home Sharing Services are AirBnB listings from AirBnB and Co-living spaces from a plethora of Co-living operators. This introduction of home sharing services with flexible and relatively short lease terms were thus met with high demand and supply. The continued growth over the last decade led to more listings over time and growth of home sharing services in Singapore. Thus, this study aims to bridge the gap in home sharing research by identifying if there are any disruptions brought to the private property market due to: 1. The Presence of Home Sharing Services within Private Property Developments 2. The Introduction of Home Sharing Services Regression models from this research uncovered that the presence of Home Sharing Services within private property developments has a positive impact on transacted property prices. Private properties within developments that have home sharing presences benefitted from price premiums of 7.2% as compared to private properties within developments without any presence of home sharing services. This supports the expected outcome from Hypothesis 1, that the presence of home sharing services within developments drive property prices up. Also, the DID approach used in this study also uncovered that the Introduction of Home Sharing Services attributed to price premiums of 32.4%. This could be due to increasing number of renters and operators purchasing properties over time for their home sharing businesses. This is supported by the strong demand for home sharing services that will be discussed in this paper.