GOOD SECURITY WILL AFFECT CONDOMINIUM BUYERS' CHOICE

Abstract

In land scarce Singapore, over 85% of the population lives in public housing while the rest stays in private housing. Condominium is one such form of private housing. The condominium concept of development was introduced in the 1972 and offers two features not found in public housing - recreational features and security. Security is viewed as just another feature of condominium living and is often taken for granted. Hence, there is a need to determine whether good security affects homebuyers' decisions. The purpose of this study is firstly, to determine whether the amount of security features affect homebuyers' choice of condominiums. Secondly, to determine whether developers could leave out certain security features if they are unimportant. Thirdly, to determine how much more are homebuyers' willing to pay for the added security features. Results showed that the amount of security features only affect the choices of higher income buyers and buyers who have young children. Developers cannot leave out any aspect of security features but instead, have to incorporate new technology in their developments. This is especially so if developers are constructing projects that are targeted at higher income buyers or families with young children. It is also found that buyers are willing to pay a premium of between 5% and 15% for good security. The demand of security features is dependent on age, income and number of children.