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Article: http://www.teoalida.com/singapore/hdbprices/
In the market of public housing in Singapore, there is only one firm present, the HDB. As they are the monopoly of government housing, they are the price setters and have the freedom to set the price of the government houses. The prices of HDB flats are falling since 2013. The government is building more flats to meet the rising population and demand for housing. The government expected that the decrease in prices of government flats will lead to more quantity being sold, resulting in generating more revenue to maximise their profit. When there was a decrease in price, the increase in the number of flats sold did not change much. Hence, it proves that HDB flats are price inelastic goods.

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How does Monopoly link to Supply in terms of Singapore Public Housing?

Photo: http://www.tablebuilder.singstat.gov.sg/publicfacing/partialDisplay.action

From the statistics shown below, the supply of flats has always been higher than the demand for the flats.

As at 2014, the number of flats constructed was 27,120, whereas the number of flats sold was 15,204. This equates to a total of 11, 916 flats remaining unsold; which is 43.9% of the total number of flats built for sale.

This shows that the number of flats put in the market for sale far exceeds the number that the buyers purchase; the supply of flats is higher than the demand for the flats.

Also, as there was a trend in decrease in prices of HDB flats, the consumers expect the prices to fall in the coming years, hence they are waiting for prices to fall further before purchasing. This is another possible reason to why the percentage of flats sold is decreasing.

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Article 2: http://www.hdb.gov.sg/cs/infoweb/about-us

HDB IS SINGAPORE'S MONOPOLIST WHEN IT COMES TO PUBLIC HOUSING.

Evidence:
"The Housing & Development Board (HDB) is Singapore's public housing authority. We plan and develop Singapore's housing estates; building homes and transforming towns to create a quality living environment for all."
- [Housing & Development Board (2016, July 13). About Us: Housing & Development Board. Retrieved from Housing & Development Board: http://www.hdb.gov.sg/cs/infoweb/about-us#]

The above excerpt from the Housing & Development Board (HDB) website has stated that it is Singapore's public housing authority, and that hence, it is the only public housing authority in Singapore.

With the establishment of HDB being Singapore's sole corporation in the public housing market, it is right to say that HDB is indeed a Monopolist in the market of public housing.

HOW HAS HDB BEHAVED LIKE A MONOPOLIST?

Article: http://esales.hdb.gov.sg/hdbvsf/eampu05p.nsf/0/16MAYBTO_page_1705/$file/about0.html

Because of the extremely high barriers of entry into the public housing market in Singapore, HDB is the current and only firm in the public housing market in Singapore right now. With this company being the monopolist, HDB has substantial market power (HDB is able to control the price it sells its flats at, as well as the number of flats it chooses to sell).

HDB has started many different schemes and policies to help provide flats for their consumer base. One example is the Build-to-Order (BTO) scheme, where customers purchase flats beforehand, and once the order quota has been made, HDB will start to construct the buildings.

This scheme is a prime example of HDB being a monopolist in the market. Using HDB's most recent BTO scheme as an example (which will be carried out from May 2016 onwards); it shows how HDB has absolute control over the resources used to build the flats, as well as the prices that the company sells the flats at.

1. Full control over output.
In the website excerpt, it has stated that HDB is planning on 6 major BTO projects in May 2016 alone, of which total up to 3,770 units of flats. Moreover, in February 2016, another BTO project was established, and it had provided a total of 4,170 units to its consumer population, and the November 2015 BTO project had provided a total of 7,061 units. This totals up to 15,001 new units being built in less than a year.

It can hence be said that HDB has full control over its resources as it can use as many resources as it wants to in order to provide and reach the self-set quota of its various projects; HDB has full control over its resources, and full control over their quantity of output.

2. Price Maker.
Since HDB is the sole firm in the public housing industry in Singapore, it is the market. As such, HDB has full control over what price they want to sell their flats (output) at, and it can be seen in the table below, where the prices are stated by HDB and HDB alone, and were not negotiated with the market.

HDB has full control over the price it chooses to sell its flats

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Article 1: http://sbr.com.sg/residential-property/in-focus/property-prices-slide-another-two-years-ubs

PROPERTY PRICES TO SLIDE FOR ANOTHER TWO YEARS.

"Singapore's real estate market will continue to deteriorate for at least the next couple of years, with occupancy and rents under pressure from slow economic growth, weak demand and high space supply."

The article has addressed the issue brought up by the constantly increasing supply of properties in Singapore coupled with a stagnant, weakening demand for the said properties.

It has stated that the value of properties will be expected to decrease if the situation were to stay as it is; increasing supply yet weak demand for housing, will decrease. Moreover, the threat of declining property value is caused also by the rising financial costs and capitalization rates*.

At a micro level, properties for rent as well as currently vacant properties are experiencing threat due to the rising supply of new properties; as the demand (no matter how weak) for newer properties is higher than that of older, vacant, properties and those for rent.

In summary, the article has pointed out how the increasing supply of new properties will not only have a counter-effect on itself since it is faced with a weak demand and will also contribute to decreasing property values, but it has also negatively impacted other aspects of housing as well; properties for rent and vacant properties are under pressure.

*Ratio of Net Operating Income (NOI) to a property asset value

Applying Microeconomics Concept: Supply & Demand

Supply of new properties is increasing; Supply curve shifts to the right.
Determinant of Supply in practice: Technology
Advanced technology has made the cost of property production cheaper, and hence why suppliers are more willing and able to produce and sell newer properties; supply of new properties increases.

Determinant of Supply in practice: Factor/Resource Price
The resources needed to produce and build the properties are cheap enough for the suppliers to be able to afford, and are able and willing to buy and use to build the new properties to sell; supply of new properties increases.

Demand for new properties is decreasing; Demand curve shifts to the left.
Determinant of Demand in practice: Price of Related Good.
The cost of staying within their current homes is much cheaper than purchasing a newer property which is more expensive, hence why buyers choose to not opt for newer properties; weak demand for new properties.

Determinant of Demand in Practice: Taste & Preference
Buyers prefer living in their cheaper, older properties than in a newer one; weak demand for new properties.

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http://www.todayonline.com/business/property/enough-home-supply-2030

http://www.todayonline.com/business/singaporeans-are-ageing-fast-lets-get-planning

http://www.channelnewsasia.com/news/business/singapore/high-end-property-market/2444750.html

http://www.cnbc.com/2016/06/14/why-singapore-residential-property-prices-may-take-their-cues-from-car-loans.html

http://www.propertyguru.com.sg/property-management-news/2016/6/127437/singapore-property-price-correction-attracts-hk-interest

http://www.bloomberg.com/news/articles/2016-05-26/singapore-property-closer-to-bottom-than-hong-kong-lasalle-says