ISSS608 2016-17 T1 Assign1 Thian Fong Mei

Abstract

Public housing has been said to be a Singapore icon, with HDB housing more than 80% of Singapore’s resident population. (http://www.hdb.gov.sg/cs/infoweb/about-us/our-role/public-housing--a-singapore-icon). Indeed, home ownership has been the aspiration for many. For first timers looking to purchase a unit in public housing, there is always the dilemma of buying a flat direct from HDB or a resale flat from the open market. Purchasing a flat direct from HDB, though cheaper, has a longer wait time depending on how long the developer takes to build the new units. With Cash over Valuations (COVs) dropping in recent years, a resale flat seems within reach for first timers again. This analysis targets the HDB resale transactions which occurred in 2015 and first half of 2016 only.

Problem and Motivation

Buying a flat is a major commitment, and one does not want to fall into the trap of behaving irrationally, and thus making a wrong decision.

One will look at time fluctuation of the resale flat prices in 2015 and first half of 2016, for price is always a major consideration in being able to service the housing loan without getting an indebtedness situation. In addition to that, it has been commonly quoted that when it comes to a property purchase, it is always about “Location, location and location”. In this analysis, besides analyzing price and location, one will also look at other attributes of the resale flat such as location, age, size, design and height of flat.

Through this analysis, it is hoped that one who is looking for a home currently is able to make an informed and rational decision for oneself.