HOUSING FUNCTION AND THE IMPACT OF BEHAVIOURAL TRAITS ON SELLING DECISIONS IN THE HDB MARKET

Abstract

A house fundamentally encompasses two main functions, the first of which involves the consumption function, and the other being the investment function. Past studies have examined the role of housing in terms of housing equity, and how its dual role influences the portfolio of investors, given that a house constitutes a significant asset. Notwithstanding past research, little has been done to uncover the dominant housing function behind a property purchase. Additionally, the emergence and increased application of a behavioural approach to real estate in Asia makes for an interesting and noteworthy study utilizing behavioural elements to be performed.

The purpose of this paper is to delve into a comprehensive analysis, in the form of a theoretical and empirical overview, to ascertain the dominant housing function, and the impact that psychological traits have on an individual’s selling behaviour in Singapore’s public housing market.

This paper aims to fulfill its inquiry into the issues discussed above, by utilizing a quantitative approach to obtaining primary data, achieved through a survey conducted. The results of a study of 389 homeowners delineate that the consumption function proves to be the more dominant of the two housing functions. Furthermore, it was also established through the study that behavioural traits indeed influences an individual’s decision to sell, validating the results of past works. Finally, this study provides the platform for future research to be undertaken by academics, by building on the results obtained to design future research to quantify and qualify the relationship between the variables.