The determinants of housing price in Singapore

Singapore's housing market has experienced significant price expansion over the past few years, a trend that has become a source of concern for many residents. The purpose of this study is to examine the relationship between housing prices in Singapore and a set of macroeconomic and financial system variables from 1980 to 2014. Macroeconomic variables included in the study are gross domestic product, consumer price index (inflation), and population rate, while the financial system variable is the lending rate. The study utilizes 35 years of secondary annual data for each variable from 1980 to 2014. For the analysis, several tests were performed using EViews version 7.0, including stationary tests, normality tests, correlation analysis, regression analysis, and descriptive analysis. The results indicate that not all predictors in this study are significantly related to house prices. The findings show that only gross domestic product and the consumer price index (inflation) are significant determinants of the movement of the house price index.