What is it about?

This quantitative research paper investigates if the market-force hypothesis and upgrading hypothesis still hold in explaining the demand for first-hand housing development board (HDB) flats in Singapore.

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Why is it important?

With historical to prevailing economic data and relationships so obtained, Simulations are carried out via system dynamics models to assess how policy changes, differentiated in scales and frequencies, affect the first- hand demand for HDB flats in Singapore.


The findings refute the market-force hypothesis and affirm that the flat upgrading hypothesis is attributable to capital appreciation through selling in the resale HDB market. Such public housing upgrading policy contribute to the upgrading of flats and properties among HDB owners,. Such policy also provides incentives for non- homeowners to make the first move in realizing the “Singapore Dream” of full home ownership. Furthermore, the simulations reiterate that too few or too many institutional changes in response to market adjustments render the HDB system unhealthy. The former induces fluctuating demand while the latter likely generates extra administrative cost, causing long-term adverse effects on the financial position of theHDB ownership.

Kim Hin / David HO
National University of Singapore, Department of Real Estate

Read the Original

This page is a summary of: Dynamics of Assisted Homeownership in Singapore, Journal of Urban Affairs, May 2009, Taylor & Francis,
DOI: 10.1111/j.1467-9906.2009.00430.x.
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