This document is examining the determinants of new private residential units sold in Singapore during the 1990s. The Singapore housing market is characterized by the coexistence of a dominant public sector and a small, growing private sector with relatively higher quality housing. The distinguishing feature of our model is that we account for the impact of the former on the latter, and the interaction between the two. Our analysis generates three principal conclusions: first, there is a statistically significant ‘‘wealth effect’’ driving the sales of new private residential properties. Second, the real loan interest rates have a statistically significant negative impact on these sales. Finally, an increase in the rate of change of public housing resale prices has an important and significant positive impact on the sales of private residential units. Housing institutions and policies have been developed systematically and comprehensively to advance social development and economic growth in Singapore. A singular feature of the residential market in Singapore is the existence of a relatively small private sector. Almost 86% of Singaporeans live in public housing (Lum, 2002). The Government owns more than 80% of the land in Singapore, including land destined for private development.