Study of property prices over the last decade shows that property in Opposition wards do not suffer

Singaporeans have many reasons to vote for the People’s Action Party (PAP) at every General Election.

Apart from the PAP being possibly the only party credible enough to form a government, Singaporeans thinking about voting opposition have to contend with their constituency coming in behind in the Great Upgrading Roulette of neighbourhoods.

Prime Minister Lee Hsien Loong admitted in 2011 that add-ons such as the Lift Upgrading Programme does arrive rather belatedly in areas where the populace does not support PAP policies and programmes.

It would be an “injustice” to place opposition neighbourhoods ahead of those PAP supporters when it comes to upgrading, he says.

Does this injustice then lead to stunted appreciation in homes?

The logic seems solid after all. Surely homes in neighbourhoods with fewer amenities would be worth less than homes with loads of amenities within walking distance?

NOPE.

nopeoctoSource

Prancing octopus has it right. The correct answer is nope.

According to a survey by real estate website 99.co, properties under opposition control appreciate at basically the same rate as properties under PAP control.

Private property transaction prices

A brief look at private property transaction prices across constituencies in the last 10 years reveals as much.

privateproppricesSource

Note that purple line right at the top. That’s property prices in Aljunied GRC, which fell to the Workers’ Party (WP) in the 2011 General Election.

Yes, property prices in an opposition ward generally outperformed that of Ang Mo Kio GRC, homeground of PM Lee.

Even prices in Potong Pasir SMC, often described as having a ‘kampung vibe’ for the lack of shiny upgrades and tall buildings, performed close to, or above the national average. The area also experienced a spike months after PAP candidate Sitoh Yih Pin took over from long-time Potong Pasir opposition stalwart Chiam See Tong.

Conversely, property prices in West Coast GRC — a staunch PAP supporting ward — performed below the national average.

HDB transaction prices

The graph of HDB transaction prices looks largely similar.

hdbpricesSource

Potong Pasir HDB units may be the most volatile, but public housing prices generally follow the same boring general trend, regardless of location.

Definitive proof that opposition wards do not equate to cheaper housing

So there we have it. The one myth of Singapore housing has been throughly busted. Constituencies under the opposition do not affect property prices at all.

Opposition supporters need not fret about their political affiliation affecting the price of their property. Instead, typical factors such as infrastructural improvements (such as train stations) and simple demand and supply arguably have more of an impact.

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Featured Image via Jnzl on Flickr
With reference to 99.co