THE DEMAND FOR CONDOMINIUMS

Abstract

Economic progress over the last 25 years has a lot to do with the way condominiums have caught on. Better design, the inclusion of facilities like swimming pool, sauna and squash court all very upper middle-classy and trendy have fired people's imagination. It is seen as part of the good life. The depression of the economy in the mid 1908s has resulted in a more increased growth than ever for condominiums. There is, then the question whether the economy has an adverse relationship with the demand of condominiums. In this study, an attempt will be made to distinguish the indicators of demand for condominiums. Emphasis is on predicting the future demand for condominiums by anticipating future growth in the economy. With the growth in GDP, the indicators for condominium demand will move in a certain way so as to enable the forecast of future demand. The forecast, however, cannot rely on the indicators alone. An attempt must be made to determine how many potential purchasers of condominiums will shift their preference to its substitutes. Although the middle income earner may be able to afford a condominium property, he may decide to buy a terrace house or HUDC flat, which are priced competitively with condominiums.