THE CHOICE BETWEEN NEW HOMES AND RESALES

Abstract

Since the evolving of the housing market in the sixties, the supply of residential properties has been tremendous. With the increasing rate of household formation, affluence and government encouragement on homeownership, the take-up rate has been encouraging. However, with the saturation of the property market and the development of an active secondary market, properties are becoming more difficult to sell. In such a situation, the real estate professionals must be able to identify their target groups, their tastes and preferences. The socio-economic characteristics of purchasers and their desires are important in the perception by vendors of the consumers to whom the property is to be sold. This dissertation attempts to examine the differences between new homes and resales and purchasers' choice with regards to physical, cost and locational factors. In general, standard of maintenance, physical condition of dwelling and accessibility are the three most important factors affecting the choice of purchasers. Differences in. response were obtained between purchasers of new homes and resales for the following factors :- Location of development Age of dwelling Design and layout of unit Availability of facilities Social mix within development Standard of workmanship Ambiance of development Price Maintenance contribution Availability of finance Newness of unit Ability to see unit physically Tenure Certainty of delivery Reputation of developer It is hoped that this study will illuminate t between the factors influencing the choice of the two types of properties and assists planning, design and marketing of properties ma rke t.