FACTORS INFLUENCING THE CHOICE OF 4-ROOM & 5-ROOM HDB FLATS

Abstract

Public housing in Singapore has progressed over the last forty years to meet the rising aspirations of its flat consumers. Bigger-sized HDB flats therefore evolved. However, the bleak economic performances in recent years, job retrenchments and wage cuts have dampened the demand for such flats considerably. The newly effected change in CPF contribution has also affected the flat owners' intention to upgrade. Therefore, it is important to realise that the consuming behaviour of the flat owners has changed. Their preference for smaller flats not only reflects the changing demography of smaller families but also the impact of the poor economy. A survey is conducted with the 4-room and 5-room HDB flat owners to determine the factors that influence their flat purchase decisions. It also examines their socio-economic characteristics and investigates the impact of the reduction in the CPF contribution on these household groups. Findings reveal that financial factors are their main considerations. Some 4-room flat owners with high monthly incomes are found to purchase and own a smaller flat to save for other commitments. The intention of the flat owners to upgrade is also established not to be dependent on gender and flat type. Majority of the flat owners are surprisingly not greatly affected by the reduction in CPF contribution. Further research is recommended to include the potential flat purchasers in the current analysis. It is also worth exploring the impact of the economy on the consuming behaviour of various HDB flat household groups and comparing the housing choices of the different household groups during different economic situations.