Exploring Internal Factors that Affect Real Estates Prices: Evidence from Singapore

The purpose of this paper is to analyze the internal factors that generate the difference in real estate prices in Singapore. The objectives are to achieve a deeper understanding of the reason why prices of real estate are different at the same period and to provide a standard for investors to detect real estate with prices that are underestimated and consider whether to invest or not. This paper examines intrinsic factors that mainly affect real estate prices. Regression analysis is the core methodology to analyze the factors; the author used normalization to process the data. The result shows there is a strong relationship between the price of real estate and house age, distance to the nearest MRT station, the number of convenience stores, and the latitude. It can be discovered that the price of real estate negatively correlates to the house age and the distance to the nearest MRT station; positively corresponds to the number of convenience stores and the latitude.