HOUSING MOBILITY STUDY

HOUSING MOBILITY STUDY

27.

Assoc. Prof. Ong Soh Khim asked the Minister for National Development in light of the recent 1995-2005 housing mobility study by the Department of Statistics (a) what is the percentage of housing shifts which occurred during each year for (i) the first 5-year period of the study when the residential property price indices were relatively higher; (ii) the later 5-year period of the study when the unemployment rates were higher; and (b) if there are any correlations between housing mobility and residential property price indices and unemployment rates.

Mr Mah Bow Tan: According to the Housing Mobility study by the Department of Statistics, 62% of households who moved house between 1995 and 2005 shifted to bigger housing, 20% moved laterally and 18% shifted to smaller housing. Of those who upgraded to bigger HDB flats, the majority (61%) did so between 1995 and 1999, compared to 39% between 2000 and 2005. As for those who moved to smaller flats, about half moved between 1995 and 1999, and the other half did so between 2000 and 2005.

It is not clear from DOS’ data whether there is a correlation between housing mobility and residential property price indices and unemployment rates. Among both upgraders and downgraders, there were higher proportions who moved house between 1997 and 2001. This is the period following the Asian Financial Crisis, which saw a slowdown in Singapore’s economy and decline in residential property prices. On the other hand, the proportion of households who upgraded to bigger flats over the last two years in 2004 and 2005 was small, despite improvement in our economic and employment conditions. Hence, besides property prices and unemployment rates, there could be other factors such as market sentiments and financial prudence, which affect the housing decisions of HDB flat buyers.

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