Within-development density and housing prices in Singapore

Author

Eric FESSELMEYER, Singapore Management UniversityFollow
Haoming LIU
Louisa POCO

Publication Type

Journal Article

Version

submittedVersion

Publication Date

11-2023

Abstract

This paper measures how much more households pay for less density in their immediate surroundings. Using transaction and administrative data and exploiting the introduction of a regulation that restricted the number of housing units for certain land lots, we find that households discount density: a 10% increase in within-development density decreases the price per square meter by 5%. Further, the mean price per square meter of the average development increased by 1%–3% after the regulation was introduced, while the amount of built-up space remained constant. The increase in total revenue suggests developers may underestimate the externality caused by density.

Keywords

density, externalities, land-use policy, regulation

Discipline

Asian Studies | Public Economics | Real Estate

Research Areas

Integrative Research Areas

Publication

Journal of Regional Science

First Page

1

Last Page

39

ISSN

0022-4146

Identifier

10.1111/jors.12677

Publisher

Wiley

Citation

FESSELMEYER, Eric; LIU, Haoming; and POCO, Louisa. Within-development density and housing prices in Singapore. (2023). Journal of Regional Science. 1-39.
Available at: https://ink.library.smu.edu.sg/cis_research/143

Copyright Owner and License

Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Additional URL

https://doi.org/10.1111/jors.12677