The significance of en-bloc sales in influencing private property prices in Singapore

• Main Authors: Hwee, Kit Leong, Teo, Jie Wei, Yang, Kun
• Other Authors: Sng Hui Ying
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2020
• Subjects: Social sciences::Economic theory::Microeconomics
• Online Access: https://hdl.handle.net/10356/139165
• Institution: Nanyang Technological University

Using data from 1996 to 2019, we establish a relationship between en-bloc sales and the private resale markets, comprising both the aggregate/overall effect and the localised effect using 2 different models. From our analysis using the Finite Distributed Lag Model (FDLM), en-bloc sales have a positive effect on the private property resale market in the aggregate sense. Analysis using the hedonic pricing model shows that en-bloc sale announcements have a positive effect on the resale prices of properties in the surrounding area, with this effect growing stronger with each successive announcement. Further analysis of sale launch dates and completion of redevelopment dates reveal that surrounding resale prices fall on such announcements. We also found deflationary spillover effects from the en-bloc sales into the public resale market.