Demand+for+landed+properties+likely+to+be+robust+-+Zelda

Demand for landed properties likely to be robust

 * Channel News Asia: [|http://www.channelnewsasia.com/stories/singaporelocalnews/view/1111176/1/.html]
 * February 16, 2011
 * According to market watchers, the demand for landed properties is likely to be robust in Singapore this year. Analysts think that limited supply of landed properties, low interest rates, and abundant liquidity will fuel the great demand for landed properties. Another reason for this increase in demand is because some home-buyers feel that the newer apartments are not as spacious as the older apartments. Healthy demand for landed properties pushed prices up by 31 percent last year, surpassing the 17.6 percent increase in non-landed home prices. Tan Wee Yong, founder of Mushrooms Realty, makes a normative statement, as he thinks that there is a supply crunch for freehold. Analysts say that landed property prices should rise by 8 to 12 percent this year.
 * determinants of demand: fundamental factors influencing buyers' demand for goods and services.
 * normative statement: a statement about an opinion or value judgement that cannot be proved or disproved.
 * limited supply: total amount of a product available for purchase at any specified price.
 * interest rates: the rate at which interest is paid by a borrower for the use of money that they borrow from a lender.
 * liquidity: measure of the extent to which a person or firm has cash to meet immediate and short-term obligations.
 * Due to an increase in demand caused by expectations and taste, the demand curve shifts to the right for landed properties such as detached, semi-detached, and terrace houses. According to the article, a landed property site in Serangoon Gardens has its price jump from about S$500 per square foot to about S$800 per square foot currently. This means that the supply remains the same as price increases.




 * Due to the limited supply of land in Singapore, shortage might occur if demand continues to increase due to expectations and tastes. In order to maximise utilisation of supply, the government could intervene and advertise for an increase in demand for apartments or for bigger apartments to be built due to the increase in population that is occurring in Singapore. In my opinion, with the continuation of a robust for landed properties, apartments should also be encouraged to be bought due to the available units right now.