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Intro - kelly
Demand - jon
Supply - maxell
Elasticity - QS
Production of cost - nat

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Proportion of income spent on a good

“The influx of new condominiums in the market has also led to a drop in private housing rental prices.”

The drop of rental for private housing has allowed more people to afford. It is because the proportion to the income spent on a good is smaller and more people are willing and able to rent units of private housing.

Since it covers a smaller proportion of one's income. People would have a large response to the drop in rental for private housing and thus, being price elastic.

Necessity vs Luxury

Housing is an essential good that everyone will have constant demand for despite for its price. The graph for elasticity will be a horizontal graph. No matter how costly the smallest unit may be, consumers will still need to settle down in it. They only can source for cheaper units by region locally. Thus, there will be less response when the rent price fluctuates. Therefore, price inelastic.

Time period

If consumers were given a long period of time, the market will fluctuate as time goes by which means, consumers will react to the increase and decrease of price. Thus, it is price elastic.
However, if consumers were given a short period of time, the market will stay constant for a short period of time. Thus, consumers do not face much change in the price, being price inelastic.

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There are available substitutes for HDB.

Examples : HDB, BTO and condos, renting of flats

"expatriates who used to prefer renting HDB flats, are now choosing condo units instead.” Having condos as one of the substitutes over HDB, when prices of the condos decreased and prices of HDB remain the same, people would go with the former as they will just have to fork out a similar sum  to enjoy better living environment with gym facilities.

Since there are many alternatives, it will be price inelastic.

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Dwellings here, Dwellings there, Dwellings everywhere

The jigsaw puzzle that is the Singaporean real estate market can be divided up, labeled, categorized, and sliced into various forms and types of housing types - or, dwellings. To make sense of it all we have created an excruciatingly comprehensive - yes, that kind of comprehensive - overview of round about all types of housing that can be found in Singapore.

Public Housing - (HDB)

First off, there are of course the HDB properties. For those who are not familiar with the Singaporean housing market, listen up! For everybody else, either skip ahead or keep tuned in to relive a piece of Singaporean history.

So, HDB properties - right. The tale goes something like this: once upon a time there was a tiny dot of land that was experiencing relentless economic growth leading to a rapid appreciation of its real estate market. With mansions, luxury estates and skyscrapers mushrooming all over the place, the government decided to intervene in the housing market, so that its citizens could continue to enjoy affordable homes - and thus the HDB flats were born.

Subsidized and regulated by the Housing and Development Boards (hence HDB), the flats were hugely popular and today more than 80% of Singaporeans live in public housing.

Relatively cheaper housing does of course come with some strings attached, the most notable of which is that to be eligible for HDB property your household income cannot be a specified amount.

To accommodate the different segments of societies, HDB offers public housing in various forms, all of which shall be detailed in this piece.

Studio Apartment

Studio apartments are designed and tailored to meet the needs of elderly residents with modest means, who aim to live independently. They come in two sizes, 36 and 45 sqm, both of which can comfortably accommodate one or two people.

The apartments have many elderly-friendly features such as specialized non-slip tiles, support bars in the bathroom and multiply pull-for-help cords. Navigate your way around this type of unit with this awesome virtual tour here.

2 - Room Flat

The two room HDB flat is specifically tailored towards the smaller and less affluent households. These dwellings are typically around 45 sqm including a bedroom, a living room, a kitchen, bathroom and storeroom. When viewed in comparison to its private counterpart, the 2 - room HDB flat can be viewed as a one bedroom apartment's twin brother, just a lot cheaper.

3 - Room Flat

Despite what the name suggests, the 3 - room HDB flat is actually quite a bit more than just a one room upgrade from the 2 -room HDB flat. It comprises of a living area, a master bedroom plus attached bathroom, another bedroom, a common bathroom, a kitchen, a service yard and a storeroom. This flat totals about 60 to 65 sqm While still a little compact it is a viable living option for families with a child that are on a budget.

4 - Room Flat

Ideal for young couples starting a family, the 4 - room flat offers an intimate and cozy living experience. Basically, it's the 3 - room flat plus one bedroom, upping the total estimated living space to about 90 sqm. This flat type is available in a variety of layouts tailored to your preferences.

5 -Room Flat

Covering 110 sqm, the 5 - room flat is a more spacious variation on the previously mentioned flats, including an additional dining area.

This one is a heads-up for Singaporeans too. The HDB is trying out a new type of design dubbed the 3 Gen Flats, or 3 generation flats, specifically tailoring to multi-generational families. Compared to the 5 - room flat it is considerably more spacious with an estimated 115 square, making way for an additional bedroom and bathroom.

This type of unit is currently piloted at Yishun where 84 units are built. And alas, there are not yet any visual tours available.

Executive Flats

This mammoth of an HDB flat has an estimated 130 sqm of floor area. The highlights include an extra space, ideal for a study room or alternative television corner. Additionally, some of the executive flats come adorned with a balcony.

In the spirit of offering greater choice and wider variety to meet the housing aspirations of higher income flat buyers, HDB introduced the Design, Build and Sell Scheme in 2005. While put under review in 2011, a total of 13 DBSS sites were launched.

The DBSS falls somewhere in between the larger HDB flats and an Executive Condominium. In terms of class, it caters to the segment of society that is affluent enough to buy or rent the better HDB flats, yet are not ready to make the jump into the private market space.

Public - Private Hybrids

Both the HUDC flats and executive condominiums are special in that they both share in public housing characteristics and private housing qualities.

The Housing and Urban Development Corporation (HUDC) flats are the dinosaurs of public housing in Singapore. Originally built in the 70s and 80s, the HUDCs were phased out after 1987, and today still 18 estates comprising 7,731 residential units remain. In the mid-90s a wave of popular demand for privatization made the government consider phasing in privatization of the HUDC estates. Up to date all estates have been privatized.

Executive Condominiums

The executive condominium as a type of property starts off as a public housing unit, then phases into private housing after 5 years of ownership. Tailored to young professionals who can afford more than an HDB flat but find private property still a little out of reach, the executive condominium share most of the design and facilities of a private condominium yet has the cheap edge of being HDB issued.

So why would anyone go for a private condominium when you can basically get the same deal, just cheaper in the HDBs executive condominium? Apart from considerations of status, there are some noteworthy differences. When putting the metaphorical magnifying glass on the fine print, it becomes clear that there are three noteworthy differences:

The executive condominium comes with some ownership restrictions. Designed to dissuade investment and stimulate ownership driven purchasing, the executive condominium comes with a 5-year Minimum Occupation Period (MOP), which means that you have to live in the condominium for at least 5 years before you are granted the rights to sell it on the open market to Singapore Citizens and PRs. And after yet another 5 years the executive condominium acquires "privatized" status, and effectively becomes a normal condominium, enabling the owner to also sell it to foreigners.

Yet another difference lies within the CPF housing grants. For executive condominiums, when eligible, you can apply for government assistance and get a subsidy, generally worth between S$10,000 and S$30,000, depending on your household income.

While condominiums can be either 99-year, 999-year or freehold, all executive condominiums come with a 99 - year leasehold.

Private Housing

Decades of strong economic growth combined with the more or less continues influx of affluent foreigners, and relatively limited supply of land (it's a tiny dot!), have led to decades of private residential property appreciation. This in turn has made Singapore a hotspot for real estate investments, a phenomenon which in turn feeds into the property appreciation. Economic gibberish aside, bottom line is that prices of private residential property have, when put in a historical perspective, been on a rising trend. This has led Singapore to host a dynamic and diversified private housing sector.

The different types of private residential property can mainly be subdivided into two main cadres: landed property and Condominiums/apartments.

Condominiums and apartments form the most popular destination for private property enthusiasts. Essentially they a more luxurious version of the HDB flats, and can widely be categorized into condo's, apartments and a variation that is called a "walk up"

Condominiums

Condominiums can be regarded as the liberated, and relatively unrestricted brother of the executive condominium. Home to recreational facilities such as swimming pools, security, gyms and at times tennis courts, basketball pits, and well-maintained gardens, condominiums are the go-to option for those who are looking for private housings yet find landed properties either too expensive or too much maintenance.

Apartments

Apartments are similar to condominiums yet they tend to be part of smaller developments and are home to less generous provisions of communal and recreational facilities. Apartments are generally more affordable than both landed property and condominiums yet more expensive than the subsidized HDB flats.

Brilliantly coined the "walk up", this particular type of dwelling is a condominium or apartment that has been specified for not including a lift. Naturally, such dwellings are low-built so that even though a lift is absent no extensive trekking is required to reach one's unit.

Landed Property

Landed Property is by many Singaporeans viewed as the housing equivalent of reaching the top tiers of the society's social ladder. While admittedly high maintenance, landed properties are unrivaled in terms of their sheer size, spacious living quarters and privacy.
From the upper left corner to the bottom right one the different dwellings are: 1. Bungalow 2. semi-detached house 3. Terrace Houses 4. Shophouses 5. Good Class Bungalow 6. Cluster 7. Townhouse
Terrace Houses

Terrace houses are properties which are part of a row of similar houses joined together by a common boundary. While joined, each Terrace House is a property in its own respect and has its own walls and roof.

Conservation Houses

Rather self-explanatory, conservation house constitute historically significant houses in Singapore which have been renovated and are conserved to fit within the urban fabric of modern Singapore.

Shophouses

The bulk of the conservation houses in Singapore are known as Shophouses. In stark contrast to the modern and at times futuristic architecture that marks many of Singapore's buildings (yes we are talking about that spaceship-cum-hotel at Marine Bay, and the Durian shaped theatre that we call the Esplanade), Shophouses are a reflection a traditionally rich mix of Chinese, Malay and European architecture.

Essentially a Shophouse is a special type of terrace house. Often two to three stories high, Shophouses are conserved terrace houses, that due to their historical significance have grown out into a type of dwelling on their own in Singapore.

While not very common, the Shophouses give the Singaporean urban landscape a distinct look and can be found in neighborhoods such as Katong, Little India, Emerald Hill, and Chinatown.

Bungalow House

The smaller (and mostly cheaper) brother of the Good Class Bungalow caters to the near-top-tier of the better-offs. With a minimum plot size of 400 sqm, the Bungalow House is still one of the larger estates, even amongst landed properties. By definition, a bungalow is also detached, in that no other estate is in some way linked to it, adding to its privacy and exclusivity.

Within the faction of Bungalow Houses there are 4 types or "classes", differentiated on the basis of their respective plots of land: from 400 sqm till 550 sqm is class 1; from 550 sqm till 700 sqm is class 2; from 700 sqm till 1000 sqm is class 3; and lastly, from 1000 sqm till 1400 sqm is class 4; anything above that will put the property in the Good Class Bungalow class.

Good Class Bungalow

Semantically understated, the ahum "good" Class Bungalow is a type of landed property tailored to the top-tier of the best-offs. This is the type of dwelling you may see in a Singaporean version of MTVs (you know, that program with rich people, big houses and lots of bling). With a land plot of minimum 1400 sqm, the Good Class Bungalow has a wealth of space, often encompassing large gardens, swimming pools and other luxury facilities -yes private cinemas and basketball courts are not unheard of here. Stressing their exclusivity in space-scarce Singapore, there are approximately 1000 Good Class Bungalows spread out amongst the authorized strips of land.

Semi-Detached Houses

A semi-detached house is not really a type in itself, rather it denotes a category of different houses, all of which abide by a series of criteria. For a dwelling to be semi-detached, it has to be partially attached on one side to any number of other units. Common examples are semi-detached bungalow houses and semi-detached terrace houses (also known as a corner terrace).

The townhouse is a bit of a hybrid between a condominium and a landed property. While it has the characteristics of a landed terrace house, the town house shares common facilities such as swimming pools, gyms and other recreational facilities with other houses. Either part of a lager condominium establishment or an entire estate, Town houses offer both privacy, spacious living, and convenience of facilities.

Cluster House

Another hybrid, designed to combine the privacy and spaciousness of landed properties, and convenience of condo-style facilities such as swimming pools, gyms, and taken-care-off gardens, the Cluster house constitute a rare yet upcoming market in Singapore. Cluster developments can be home to terraces, semi-detached housing, bungalows, a mix of these and share facilities within their developments.

Wrap up

So, there is the jigsaw puzzle of the Singaporean real estate market for you. Familiarizing yourself with the different types of houses can be a useful first step in the search for your new home, and tailoring your search according to property type is one of the easiest and most efficient ways to separate the wheat from the chaff. At 99.co we have incorporated a feature where you can use the property search engine and filter the results to the types of housing relevant for your search by simply ticking off a series of boxes.

Is this real estate puzzle still giving you a headache? Feel free to drop us a line in the comment section below!
Ready to find the home you'll love? Go to 99.co!

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Housing Types in Singapore; a General guide

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Dwellings here, Dwellings there, Dwellings everywhere First off, there are of course the HDB properties. For those who are not familiar with the Singaporean housing market, listen up! For everybody else, either skip ahead or keep tuned in to relive a piece of Singaporean history. So, HDB properties - right.

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Elasticity: Assuming all other variable are constant. Elasticity for renting Condo is both price and income elastic. Elasticity for renting a HDB is are both income and price inelastic

However, in this article for elasticity of renting a condo, tenants are not responsive towards the decrease of rental price of condo, making it price inelastic in this situation.

Determinants of Elasticity for condo and HDB flats : Necessity V Luxury.
Since renting a condo is a generally a luxury, it is very price elastic. In addition, since renting a HDB is a generally a necessity, it is price inelastic. Both HDB and condo are income elastic.

Normal or Inferior good :
Renting of HDB is an inferior good as having a place to stay is a necessities and there are also better options instead of renting a HDB flat. Renting of condo is a normal good as living in a condo is generally a luxury with the extra facilities.

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Determinants of Supply :
Expectation of sellers:
In the newspaper, it states that "The private rental market is expected to continue facing downward pressure. Experts said supply is expected to rise this year as more condos are completed and HDB upgraders seek to rent out their flats."
Due to sellers expecting the rent for condos to continue falling and more condos are being constructed, they will rent out more now before the price actually falls. This caused the supply for HDB to increase today causing a rightward shift in the supply curve for HDB flats. According to the law of supply, the increase in supply is due to the decrease in demand for HDB flats.
In addition, according to the law of supply, the increase in demand for condos, decreased the supply, causing a leftward shift in the supply curve for condos.
Number of sellers:
As more condos are being constructed, it increases the number of sellers in the market. It increases the number of sellers, causing a rightward shift in the supply curve.

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Demand: Demand for HDB flats is higher than demand for condo.

Determinants of Demand 1: This is because there are more number of buyers searching for HDB flats than condo. In addition For example, there are more buyers for HDB because both S Pass and EP holders demand for HDB  flats while only EP holders demand for condo as EP holders are able to afford it.

Determinants of Demand 2 : Money income of buyers. EP holders able to afford both HDB flats and condo but S Pass holders only able to afford HDB flats. This increase demand for HDB flats.

Determinants of Demand 3 : Taste & Preferences. Even though condo prices are down, tenants still prefer HDB over condo due to HDB being larger in size.

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Determinants of Supply:

Number of sellers:
The number of private housing (condos) units increased. Sellers will sell their current unit (public housing unit or HDB unit) and go for the recent built unit for better facilities and environment. This increases the number of sellers. Therefore, causing a rightward shift of the supply curve.

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( normal & inferior goods )
Rental prices of Housing -
HDB vs Condo

"gap in rental prices between HDB flats and older private properties has narrowed" Price is similar,

Taste & Preferences -  Expatriates prefer Condo over HDB.
Condo comes with facilities such as Swimming pools, Gymnasiums, BBQ Pits, Function rooms ->
More attractive choice compared to HDB - Common space ( Void Deck)

"Analysts expect a flood of 26,467 new private condo and executive condominium units this year."

Expectation of Buyers, Number of buyers - Flood of new condo in market -> Supply increase, competition between suppliers up, create surplus which pushes the price down ( Link to elasticity - housing necessity, not  luxury -> housing inelastic -> not responsive to change in price)
price down in future -> expatriates  will be not be very willing to buy housing now, as they wait for prices to drop to get the best deals.

Also, since there are more and more people decided to live life abroad, the amount of units left vacant increases. This caused the demand to decrease as the number of buyers decreased. This leads to a leftward shift in the demand curve.

"banking and finance industry is seeing a slowdown. As a result, consumers have become more cautious with their spending habits."
"world’s most expensive city, according to the latest Worldwide Cost of Living Survey released by the Economist Intelligence Unit (EIU)"

Money Income - high cost of living, slow down of finance sector means the rate of increase of income also slows down -> if buyers expect slow down -> more cautious with spending habits, more thrifty -> buying house is huge spending, Buyers take more time to make decision as they are more reluctant to spend. -> less demand. Therefore, this causes a leftward shift in the demand curve.

"job markets here are going through a slump" -> not enough money, cannot afford, decrease in demand.
"fewer jobs being created" - relatively lesser influx of expatriates move to singapore to work -> Money Income - Demand of housing down. -> leftward shift in demand curve

Consumer more cautious with spending habits -> Demand down due to
Money income

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Hi guys, I'm slightly confused. It seems that you selected housing as your topic but I don't see this confirmed anywhere?
Also, please list out the MIEC concepts that you will be discussing in your report - i.e. report outline. So far you only have Demand, and that is not enough.
Cheers, mrs Sharpe

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cover page pretty weird but article can relate to determinants of demand

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not a news article but allowed

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By Sukanya Thalpati
Singapore remains the world's most expensive city, according to the latest Worldwide Cost of Living Survey released by the Economist Intelligence Unit (EIU). Meanwhile, the property and job markets here are going through a slump. It has also been widely reported that the global oil and gas sector has been greatly affected.

At the same time, we also see other sectors being affected. For instance, Singapore's banking and finance industry is seeing a slowdown. As a result, consumers have become more cautious with their spending habits.
Demand and supply
With fewer jobs being created, there has been a relatively lesser influx of expatriates moving to Singapore, which has caused a fluctuation in demand and supply. Expatriates whose jobs have been affected, have also moved out of Singapore. This has led to an increase in supply of homes and less demand for them, thereby reducing rents. Adding to this is the slew of stringent cooling measures by the government to prevent a property bubble here, which has impacted the rental market.

The government also imposed a quota system for HDB rentals which took effect from 16 January 2014. This system was introduced after the Little India riots, to help maintain a good ethnic mix in HDB estates.

The HDB said the measure was put in place "to prevent the formation of foreigner enclaves in HDB estates, and maintain the Singaporean character of our HDB heartland".

Malaysians are not subject to this quota in view of their close cultural and historical links with Singaporeans. The non-citizen quota is set at eight percent for neighbourhoods and 11 percent for an HDB block, and is applicable if the subtenant renting the entire flat is a non-Malaysian foreigner. If the quota is reached, then only Singaporeans and Malaysians can rent a flat in that neighbourhood or block.

Information on the quota allotment is available on the Housing Board's website. It is updated on the first of every month and changes every month, depending on transactions taking place during the month.

Click here to check the quota.
Shifting rental trends
The influx of new condominiums in the market has also led to a drop in private housing rental prices. Analysts expect a flood of 26,467 new private condo and executive condominium units this year.

We see a shift in rental trends, where expatriates who used to prefer renting HDB flats, are now choosing condo units instead.

The gap in rental prices between HDB flats and older private properties has narrowed quite a bit, making condominiums, which come with facilities like swimming pools and gymnasiums, more affordable for new expatriates.

According to data from the Urban Redevelopment Authority (URA), private residential rents dropped by 4.6 percent last year. The suburbs registered the biggest decline, with rents falling 5.6 percent, followed by the city fringe and city area at 4.9 percent and 3.8 percent, respectively.

The dynamics of demand and supply have largely impacted the market, and its effects can be seen. It looks like this slump may stay for a while unless there's a drastic change in market dynamics or economic policies.

This article was first published on dreamhomeforu.blogspot.sg.

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Shifting demand and supply trends in Singapore's rental market

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By Sukanya Thalpati Singapore remains the world's most expensive city, according to the latest Worldwide Cost of Living Survey released by the Economist Intelligence Unit (EIU). Meanwhile, the property and job markets here are going through a slump. It has also been widely reported that the global oil and gas sector has been greatly affected.

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Oil, taxis, housing are all good topics. However, you need to decide on 1 topic: either oil, or housing, or taxis, and get three articles on that particular selected topic.
Then post an outline of the applicable MIEC concepts that are relevant to the topic and articles selected, so that I can give you a more specific feedback.
Cheers, mrs Sharpe

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Due dates:
-15 July: Padlet Wall
-1 August: Report (Hardcopy and Softcopy)

(Things to note: PUNCTUAL SUBMISSION & APA CITATIONS