Hedonic Price of Housing Space

45 Pages Posted: 22 Aug 2019

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Yanying Chen

School of Economics, Singapore Management University

Jing Li

Singapore Management University

Yi Jin Tan

School of Economics, Singapore Management University

Date Written: August 15, 2019

Abstract

This paper estimates hedonic prices for different levels of housing space, by exploiting a unique space-adding project in Singapore that added a uniform amount of space to each existing housing unit regardless of the original size. This space adding program was carried out if sufficient residents vote in favour of space adding. Using a difference-in-differences strategy after restricting our sample to narrow margins around the voting cut-off, we find that the additional space increased the resale price of a housing unit by 7% on average, and the extent of price appreciation varied significantly across the original size of the units.

Keywords: housing space, implicit price, hedonic regression, urban redevelopment

JEL Classification: D04, R21, R28

Suggested Citation

Agarwal, Sumit and Chen, Yanying and Li, Jing and Tan, Yi Jin, Hedonic Price of Housing Space (August 15, 2019). Available at SSRN: https://ssrn.com/abstract=3440448 or http://dx.doi.org/10.2139/ssrn.3440448

Sumit Agarwal

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Yanying Chen

School of Economics, Singapore Management University ( email )

90 Stamford Road
Singapore, 178903
Singapore

Jing Li (Contact Author)

Singapore Management University ( email )

90 Stamford Road
178903
Singapore

HOME PAGE: http://www.mysmu.edu/faculty/lijing/

Yi Jin Tan

School of Economics, Singapore Management University ( email )

90 Stamford Road
Singapore, Singapore 178903
Singapore

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