UPWARD RESIDENTIAL MOBILITY: FROM PUBLIC HOME OWNERSHIP TO PRIVATE HOME OWNERSHIP

Abstract

The presence of the unique public housing in Singapore allow the nation to observe a special housing upward movement: from the public homeownership to the private homeownership. With the cooling measures implemented by the government, it is expected that demand for private housing among the foreigners will decrease while former public homeowners who have met the Minimum Occupation Period are likely to contribute significantly to the demand. Upward mobility is an important activity that affects the volatility in both public and private housing market. With changing demographic and economic trendsas well as narrowing gaps between public and private housing, the need to understand the changing preferences among HDB upgraders are essential.

Results generated from the probit model on upgraders’ housing choice have shown some minor changes in their preferences over the years. Area is a relative constant factor across the study period while the rising income among former public housing homeowners allow them to afford more expensive units in recent years. In terms of tenure and type of sales, evidence have shown that the study group are more inclined towards resale and freehold private property. Lastly, more upgraders choose to purchase property in the central region.

The study serves to understand the changing housing preferences among the HDB upgraders which enable government to formulate better housing decisions and allow developers to gain insights on the demand for current housing characteristics.