# data[].attributes.body
Command: Discuss
Give two (pov)

Content:
Demand and supply determinants
PED and PES

Context:
SG housing policies, contextual knowledge

# data[].attributes.body
Command: Discuss
Give two perspectives (pov) and challenge reasons for outcomes.

Content:
Supply and demand factors (determinants of supply and demand?)
How do these factors affect the supply and demand? To what extent? And what is the effect on the price as a whole?
Give diagram to show overall changes.

Context:
Private residential properties -> luxury? YED?
Substitutes? -> Public housing
Outcome: Price rise in private residential properties

# data[].attributes.body
The increase in prices of private residential properties may be increasing at a decreasing rate due to 1. income of consumers, 2. changes in prices of related goods, and 3. expectation of future prices.

1. DD: since private residential housing is a normal good for most people,  which varies directly with income, citizens may have experienced decreases in income for the past 8 years, leading to a lesser demand for normal goods as people turn to inferior goods like BTO flats or resale flats.

2. DD: there may have been changes in the price of related goods (substitutes in consumption), where for eg, the government may have put forth more policies to make HDB flats more affordable. as prices of flats decrease, the quantity demanded for flats increase. Since flats and private residential housing are substitutes in consumption, demand for private housing will decrease. Sellers are unable to sell all they want at the current price and will lower price so the quantity demanded increases and quantity supplied falls. The surplus will create downward pressure on price, lowering eqm prices and increasing eqm quantity.

3. SS: Based off the decrease in the rise in prices over the last 8 quarters, sellers may have expected a decrease in future prices. Hence, they are more incentivised to sell more private housing now, leading to an increase in the current supply for the good.

PES diagram and PED diagram

# data[].attributes.body
Command: take into consideration the possible outcomes of each SS and DD factor on the prices of private property increasing at a decreasing rate. Discuss: weigh and evaluate the more important  demand and supply factors

Content: Demand factors cause a decrease in demand, supply factors cause an increase in supply -> surplus, downward pressure on price. PED < 1 as private housing is a luxury good with its substitute in consumption being more affordable public housing (HDB flats.

did supply and demand influence the price exactly how we predicted it to? how did the demand and supply factors interplay?

Context: Determinants of demand and supply, Price Mechanism, PED.

Chloe

# data[].attributes.body
Command word: Discuss
- Need to provide 2 point of view for various arguments, and since it is hard to have a definite anti-thesis for the question, anti-thesis can challenge the increase in demand or increase in supply

Content:
DD and SS (Draw diagram)
PED and PES
Relevant government policies or contextual knowledge related to the market for private housing

Context:
Part 1: Explain the rise in prices of private residential properties
- Increase in DD and Increase in SS
- For price to increase overall, DD must have increased greater than SS
Part 2: Explain the decrease in the rise in prices
- PES ( < 1 because it takes a long time to build private properties)
- PED ( > 1 because it takes up a large percentage of the consumer's income)

- How to do evaluation for essay questions in general?
- With the introduction of stamp duty in Singapore during that period, why does the supply still rise to a record high?

# data[].attributes.body
Context:
DD/SS (include diagram)
Increasing Prices of private housing is slowing down
And this can affect both PES and PED.
Housing is a necessity so PED should be inelastic.

Command: Discuss
Provide 2 POV, and describe the strength and limitation of each determinant (or the Pros and Cons)
Explain the effect of determinant on dd/ ss
Describe general Shifts of both graphs
Put the two Curves together
Explain if DD has a greater shift than SS

Content:
Demand and Supply determinants
- DD Factors
Rising income after the Global financial crisis in 2008
Demographic changes where more people are seeking to buy houses
Expectations in decreasing rate of price increases in private housing market

- SS Factors
Cheaper input prices available, and improvement in tech that decreased the COP and increase SS

Private Housing is a form of housing - necessity, but is relatively more price elastic than public housing.
PED > 1, PES <1

# data[].attributes.body
Command: “discuss”
Content: DD&SS factors
Content: P and SS of private residential properties rise
rise in P of priv residential properties slow down
- consider possible factors/ determinants that will affect DD and SS causing it to lead to a increase in P (eg increase in Y so more consumers are willing and able to buy priv residential properties)
- will the same factors/ determinants stated above cause rise in P to slow down?
- what causes the total SS of new priv residential properties to be at a record high (eg more companies to build more priv residential properties)

# data[].attributes.body
The question may be asking us to evaluate which determinants of demand and supply are more important for the increase in demand and supply.
Content: Demand and Supply
PED
Context: Rising prices of private residential properties and record high of supply of private properties. Rising prices of private properties mean that the increase in demand is more than the increase in supply. However the rise in prices is slowing which means the increase in supply is getting closer to the increase in demand.