Evaluating the effectiveness of cooling measures on property prices: An exploration of alternative econometric techniques

David K. C. LEE, Singapore Management University
Sock Yong PHANG, Singapore Management University
Kok Fai PHOON, Singapore Management University
Karol WEE, Singapore Management University

Abstract

To study the degree of success of various government measures to maintain house price stability in Singapore by exploring and determining the effectiveness of various interventions using different econometric models. We find that the May 1996 measures which included capital gains taxation had a clear impact on prices and that many of the recent measures such as additional stamp duties and disallowing various financing arrangements appear not to have had a significant effect on housing prices.