The impact of crowdedness on housing prices (Opinion, Page A20)

Wednesday, 17 May 2017

The Straits Times

This was an article contribution by Dr Eric Fesselmeyer, Senior Lecturer, student Kwok Ci Yi, Jonathan, both from the Department of Economics at NUS Faculty of Arts and Social Sciences and Dr Seah Kiat Ying from the Department of Real Estate at NUS School of Design and Environment as part of the monthly Ask: NUS Economists series. Addressing the impact of crowdedness on housing prices, they studied 11,913 transactions from 337 projects from 2002 to 2016 and found that an increase in localised density negatively affected prices: a 10 per cent increase in density caused a decrease in price per square foot by about 2 per cent. Their conclusion that crowdedness negatively impacts welfare carries important policy implications since almost all cities regulate density using measures such as plot ratio in Singapore.

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