Dynamic pricing in the Singapore condominium market

• Main Authors: FESSELMEYER, Eric, LIU, Haoming
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Dynamic pricing; Housing markets; Repeated sales method; Asian Studies; Real Estate
• Online Access: https://ink.library.smu.edu.sg/cis_research_all/2; https://ink.library.smu.edu.sg/context/cis_research_all/article/1001/viewcontent/1_s2.0_S0165176514001505_main.pdf
• Institution: Singapore Management University

Dynamic pricing strategies are likely an important consideration of Singapore condominium developers because of the durability of condominiums, price transparency, and the long sales period. While we do not observe any systematic relationship between the new sale prices and time of purchase, we do find that quality-adjusted price increases and the quality of units purchased decreases over the new sale period. These results suggest that condominium developers allow early buyers to purchase high quality units at discounted prices but do not extend the price discount to later buyers of low quality units. (C) 2014 Elsevier B.V. All rights reserved.