FACTORS AFFECTING THE DEMAND FOR 3-ROOM HDB FLATS

Abstract

With the rising affluence and aspirations of people over the years of economic growth, better quality and bigger-sized HDB flats have been well sought-after by the consumers. However, in recent years, there has been an increase in the demand for smaller flats. This change in consumers' preference for smaller flats has been brought by the demographic and economic changes. This study aims to determine the factors that affect the demand for 3-room HDB flats and examines the socio-economic characteristics of the 3-room flat owners. Hence, a survey is carried out on the first time flat purchasers as well as the downgraders. The survey findings reveal that most of the 3-room flat purchasers have a smaller family size and with a lower family income. The findings also reveal that financial constraints are the main reason people downgraded. The volatile job market, unemployment and pay cuts induced by the sluggish economy have caused a downward mobility trend. Further works to include the potential 3-room flat purchasers is recommended for a more in-depth analysis of consumers' housing preferences.