Dynamic Pricing in the Singapore Condominium Market

Abstract

Dynamic pricing strategies are likely an important consideration of Singapore condominium developers because of the durability of condominiums, price transparency, and the long sales periods. While we do not observe any systematic relationship between new sales prices and time of purchase, we do find that quality-adjusted price increases and the quality of units purchased decreases over the new sales period. These results suggest that condominium developers allow early buyers to purchase high quality units at discounted prices but do not extend the price discount to later buyers of low quality units.