Is Singapore property market in a Bubble ?!
The Singapore housing market is experiencing a boom due to monetary policies both within and outside the country;
housing affordability has thus become a key concern for the Singaporeans. This project will attempt to thus predict housing prices and affordability to address these concerns, particularly for the HDB resale market who despite a global economic downturn due to the federal reserve’s tightening starting March 2022, has managed to see growth till the time this paper was written.
The Autoregressive integrated moving average (ARIMA) model will be used to assess the affordability of housing by predicting the future value of Singapore’s ratio of household assets and liabilities.
The ARIMA model will also be used to predict the future value of the 3 most popular HDB flat types, particularly the 3, 4 and 5 room units.
Lastly, we will also perform a linear regression to assess the ability of the Singapore Overnight Rate Average (SORA) in controlling housing prices, as a tool the government uses to cool the housing market.