The housing market in Singapore has observed extensive development and growth over the past years due to the validation of favourable economic, lawful, social, civilized, and political policies. housing and Development Board is the managerial organization that responsible for the development and improvement of the housing area in Singapore. In Singapore, above 80% of its citizens own homes, apartments, hostels and flats. Singapore has also set up economic facilities such as the Central Provident Fund (CPF) to provide loan to its citizens at a lower interest rate to acquire houses and apartments. Favourable housing policies have also enabled the development and growth of other housing industries in other developed economies such as the UK, USA, Sweden, and Poland. © Copyright by Wydawnictwo Uniwersytetu Warmińsko-Mazurskiego w Olsztynie.

Singapore's market for new privately developed apartments exhibits wide quasi-experimental variation in ownership tenure. We develop an empirical model in which prices are decomposed into the utility of housing services and a factor that shifts with asset tenure and the discount rate schedule, which we discipline to vary smoothly over time. We estimate discount rates that decline over time and, to accommodate the observed price differences, fall to 0.5–1.5% p.a. by year 400. The finding that households making sizable transactions do not entirely discount benefits accruing centuries from today is relevant, with the appropriate risk adjustment, for evaluating climate-change investments. © 2021 John Wiley & Sons, Ltd.