Tracking the short term impact of floods on residential property markets

This paper investigates whether real house price appreciations can be attributed to the surge in real capital inflows into Singapore. We proxy capital flows by using the amount of Foreign Direct Investments (FDI) to real estate capturing the foreign purchases of property in Singapore which we deflate by the private residential property price index. Notwithstanding the absence of a cointegrating relationship, our results support the hypothesis that lagged short term fluctuations in capital inflows are positively associated with the growth rates of house prices over the last decade. We also provide evidence that macroprudential measures implemented by Singapore reduced the impact of capital inflows on house price appreciation by more than half, suggesting the effectiveness of such market cooling measures in weakening the credit growth channel.

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Residential property markets

How to Report Economic News ◽

10.4324/9781315678535-ch9 ◽

2017 ◽

pp. 188-223

Keyword(s):

Residential Property ◽

Property Markets

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Estimating Residential Property Values on the Basis of Clustering and Geostatistics

Geosciences ◽

10.3390/geosciences9030143 ◽

2019 ◽

Vol 9 (3) ◽

pp. 143 ◽

Cited By ~ 5

Author(s):

Beata Calka

Keyword(s):

Estimation Error ◽

Local Property ◽

Percentage Error ◽

Residential Property ◽

Property Value ◽

Second Stage ◽

Spatial Factor ◽

Using Data ◽

The Impact ◽

Property Markets

The article presents a two-stage model for estimating the value of residential property. The research is based on the application of a sequence of known methods in the process of developing property value maps. The market is divided into local submarkets using data mining, and, in particular, data clustering. This process takes into account only a property’s non-spatial (structural) attributes. This is the first stage of the model, which isolates local property markets where properties have similar structural attributes. To estimate the impact of the spatial factor (location) on property value, the second stage involves performing an interpolation for each cluster separately using ordinary kriging. In this stage, the model is based on Tobler’s first law of geography. The model results in property value maps, drawn up separately for each of the clusters. Experimental research carried out using the example of Siedlce, a city in eastern Poland, proves that the estimation error for a property’s value using the proposed method, evaluated using the mean absolute percentage error, does not exceed 10%. The model that has been developed is universal and can be used to estimate the value of land, property, and buildings.

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