The Effects of Housing Price Changes on the Distribution of Housing Wealth in Singapore

Abstract Accelerating public housing prices may have resulted in housing wealth distribution changing over time. Measurement of public housing wealth distribution in Singapore from 1984 to 1992 is carried out. Result show that, overall, the distribution was reasonably good from 1984 to 1990. But, starting from 1991, inequality increased. Housing price change is the major reason for the change in equality. The estimated result of the impact of the price change on inequality indicates that a $1000 price increase in a 3-room flat reduces the Gini coefficient by 0.35 percent, while a $1000 price increase in a 5-room flat increases the Gini coefficient by 0.37 percent. The price change of a 4-room flat has an uncertain effect on inequality.