This paper examines whether homebuilders take advantage of their local market power by setting higher prices for new units they are selling in the neighbourhood. By virtue of the size of their new developments, homebuilders can often dominate the supply of housing units available for sale in a vicinity. Based on a sample of 854 new private housing developments launched in Singapore between 2003 and 2012, a new development, on average, supplies 44% of the total stock of new unsold housing units in the district. The regression results further show a positive and significant relationship between the market power and the prices of units in the development, which is robust even after controlling for the reputation of the homebuilders. This is consistent with the notion that homebuilders take advantage of their domineering position in the local housing market by setting higher prices. We also observe that homebuilders with strong market power took a longer time to sell their units. The combined findings suggests that homebuilders with strong market power take their time to sell the new units at higher prices.