THE RELATIONSHIP BETWEEN DEMOGRAPHICS AND THE RESIDENTIAL HOUSING PRICES IN SINGAPORE

Abstract

This study examines the effects of demographic changes on the Singapore's residential property market. The decline in birth rate, which translates to a shrinking and ageing population, may have consequences upon the housing market. In the analysis, what impact demographic factors have had on demand for housing is scrutinized. It also reveals the importance of demographic factors compared with other factors such as gross domestic product, income, interest rates, and unemployment rates. In addition, it assesses what more recent demographic patterns imply about housing prices in the near future. The results suggest that residential demand generally reacts more to factors such as gross domestic product other than demographics. Based on demographic forecasts, expectations cannot be accurately formulated about the future shape of the residential market.