MIEC GROUP PROJECT TA25 GROUP 4 by maxilimus chng https://padlet.com/maxellchngjy/miec_ta25_g4 GROUP MEMBERS: KELLY HAN// MAXELL CHNG// NATASHIA PEK// JONATHAN POH// ZHOU QUNSHAN en-us 2016-06-26 07:22:32 UTC 2025-10-30 14:17:05 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Dootheets.png MAXELL TA25 maxellchngjy https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115443239 Due dates: 
-15 July: Padlet Wall
-1 August: Report (Hardcopy and Softcopy) 

(Things to note: PUNCTUAL SUBMISSION & APA CITATIONS]]> 2016-06-26 07:30:33 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115443239 Tutor's Comment: vha2 https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115574433 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]]> 2016-06-28 08:53:38 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115574433 ARTICLE #1 epicjonnycake https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115752273 not a news article but allowed]]> 2016-06-30 14:05:32 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115752273 ARTICLE #2 epicjonnycake https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115752737 cover page pretty weird but article can relate to determinants of demand

]]> 2016-06-30 14:11:08 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/115752737 Tutor's comment #2: vha2 https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116380862 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

]]> 2016-07-14 02:42:53 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116380862 DEMAND #1 maxellchngjy https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445599 ( 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

]]> 2016-07-15 02:57:29 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445599 SUPPLY #1 maxellchngjy https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445612 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.
]]> 2016-07-15 02:57:45 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445612 DEMAND #2 maxellchngjy https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445811 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.]]> 2016-07-15 03:01:05 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445811 SUPPLY #2 maxellchngjy https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445934 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.  

]]> 2016-07-15 03:03:26 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116445934 ELASTICITY #2 maxellchngjy https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116446003 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.]]> 2016-07-15 03:05:16 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116446003 ELASTICITY #1** epicjonnycake https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116446326 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.
]]> 2016-07-15 03:10:25 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116446326 ELASTICITY con'td natashiapekk https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116447142 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.
]]> 2016-07-15 03:26:47 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116447142 Outline  epicjonnycake https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116983592 Intro - kelly
Demand - jon
Supply - maxell 
Elasticity - QS
Production of cost - nat

]]> 2016-07-26 05:42:32 UTC https://padlet.com/maxellchngjy/miec_ta25_g4/wish/116983592