{"id":121077,"date":"2021-07-26T05:39:17","date_gmt":"2021-07-25T22:39:17","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/clustering-in-some-neighbourhoods-due-to-purchasing-power-disparity\/"},"modified":"2021-07-26T14:06:01","modified_gmt":"2021-07-26T07:06:01","slug":"clustering-in-some-neighbourhoods-due-to-purchasing-power-disparity","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/clustering-in-some-neighbourhoods-due-to-purchasing-power-disparity\/","title":{"rendered":"\u2018Clustering\u2019 in some neighbourhoods due to purchasing power disparity"},"content":{"rendered":"


\nChinese clusters were seen in central areas, while Malay clusters were in the northern and\u00a0eastern neighbourhoods; Indian clusters were found in Admiralty, Pasir Ris Drive and Boon Lay as well as\u00a0areas such as Kampong Java and Bendemeer.
\nA study showed that homeowners from the main ethnic racial groups\u2014namely, Chinese, Malays and Indians\u2014have been gravitating towards certain parts of Singapore, despite the implementation of the Ethnic Integration Policy (EIP), reported TODAY.
\nThe study was led by Associate Professor Leong Chan-Hoong, a psychologist and statistician from the Singapore University of Social Sciences. Since 2016, Assoc Prof Leong has been studying the spatial distribution of Housing and Development Board (HDB) blocks that have met their EIP limits.
\nIn August 2020, the study was published in a book titled, Building Resilient Neighbourhoods in Singapore, which was also co-edited by Assoc Prof Leong.
\nAccording to the study, the proportion of HDB blocks that have achieved the occupancy quota for at least one of the ethnic groups increased from 28% in 2016 to 33% in 2021.
\nThe percentage of blocks that had achieved the Chinese quota remained largely stable at about 17% since 2016, while the figure for Malaysia doubled to 10.1% this year from 4.7% in 2016. The figures for Indians also increased to 8.8% from 6.8% over the same period.
\nAssoc Prof Leong attributed the clustering trend primarily to the differences in the purchasing power of the different ethnic groups, with price as the main consideration.
\nIn his study, a cluster is considered to have been formed when at least five or six blocks within a group of 10 blocks at a certain neighbourhood had met their ethnic quota.
\nUsing HDB data, he calculated the average resale prices per sq m of flats in different neighbourhoods based on resale transactions between 2017 and 2019.
\nAssoc Prof Leong then mapped out the neighbourhoods based on the following average resale price bands\u2014$3,000 to $3,958.46; $3,958.47 to $4,699.24; $4,699.25 to $5,492.50; $5,492.51 to $6,501.28; and $6,501.29 to $9,000.
\nHis study showed that Chinese households tend to set up homes in areas where resale flat prices were higher compared to where minority races had formed clusters.
\nChua Beng Huat, a sociologist from the National University of Singapore (NUS), believes clustering may be driven by cost rather than a desire to live with those of similar ethnicity.
\nChinese clusters were seen in central areas like Bukit Ho Swee, Bishan East, Holland Drive, Cheng San, Tiong Bahru and Marymount, where the average resale price per sq m (psm) for an HDB flat hovered between $3,958.47 and $6,501.28.
\nMalay clusters were in the northern parts of Singapore, like North Coast in Woodlands and Woodlands West as well as the eastern neighbourhoods such as Pasir Ris Drive and Tampines East. The average resale price psm stood at between $3,000 and $3,958.46 in the north, and between $3,000 and $4,699.24 in the east.
\nIndian clusters were found in Admiralty, Pasir Ris Drive and Boon Lay where resale prices psm hovered at between $3,000 and $3,958.46.
\nThere were also Indian clusters in areas with higher resale prices, such as Kampong Java and Bendemeer, where the average resale price psm ranged between $5,492.51 and $6,501.28.
\nThe emergence of Indian clusters in both areas with low and high average resale prices could be due to the \u201cdifference in choice\u2026 between local-born Indians and naturalised Indians\u201d, said Assoc Prof Leong.
\n\u201cWe do not have residential location segmented by place of birth and income, but we know that permanent residents and by extension, naturalised citizens, tend to have higher income than average Singaporeans,\u201d he added as quoted by TODAY.
\nThe latest census data from the Department of Statistics showed that while the median household income from work increased across the board for all households from 2010 to 2020, the increases for Indian and Chinese households outpaced the hike for Malay households. Last year, the median household income from work for Indians stood at $8,500, $7,972 for Chinese and $5,704 for Malays.
\nWhile Indians have the highest median household income, Chinese homebuyers are able to \u201cdictate\u201d market forces in resale prices since they make up the majority, said Assoc Prof Leong.
\n\u201cGiven the numerical dominance, if the majority of Chinese decide to move into a residential neighbourhood, that will drive up resale prices and limit the options for minority home buyers with lower purchasing power,\u201d he explained.
\nAlthough cost may be a factor in the formation of clusters, most property analysts and sociologists believe that there could be other factors to such formation, such as being near to workplaces and family.
\nChristine Sun, OrangeTee\u2019s Senior Vice-President of Research and Analytics, said the preference for a certain neighbourhood might be driven by industries that hire a higher proportion of a certain race.
\nNicholas Mak, Head of Research and Consultancy at ERA, on the other hand, said location also plays a role in buying decisions. He noted that many buyers prefer areas near their parents, schools where their children attend or workplaces.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…\u2018Clustering\u2019 in some neighbourhoods due to purchasing power disparity<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese clusters were seen in central areas, while Malay clusters were in the northern and\u00a0eastern...<\/p>\n","protected":false},"author":1,"featured_media":121078,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-121077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/HDB-EIP.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vuR","jetpack-related-posts":[{"id":120554,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ethnic-integration-policy-remains-important-to-building-racial-harmony-says-desmond-lee\/","url_meta":{"origin":121077,"position":0},"title":"Ethnic Integration Policy remains important to building racial harmony, says Desmond Lee","date":"July 6, 2021","format":false,"excerpt":"\r Ethnic Integration Policy remains important to building racial harmony, says Desmond LeeLee explained that the EIP remains \u201ccritical, because so much of our lives, and our children\u2019s lives, revolve around our homes and our neighbourhoods\u201d.\u00a0 Minister for National Development Desmond Lee believes the Ethnic Integration Policy (EIP) is still\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/HDB-Singapore-1.jpg?fit=810%2C422&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":121284,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-exploring-ways-to-keep-public-housing-accessible\/","url_meta":{"origin":121077,"position":1},"title":"Government exploring ways to keep public housing accessible","date":"August 6, 2021","format":false,"excerpt":"\r Government exploring ways to keep public housing accessibleThe Government is working on making public housing, especially in prime areas, more inclusive amid growing income inequality.\u00a0 Second Minister for National Development Indranee Rajah said Singapore must think harder on how it could keep public housing accessible and inclusive, amid the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/08\/HDB-flat-Singapore.jpg?fit=820%2C411&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":121102,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/any-potential-measure-to-reduce-eips-economic-impact-should-apply-to-all-races\/","url_meta":{"origin":121077,"position":2},"title":"Any potential measure to reduce EIP\u2019s economic impact should apply to all races","date":"July 27, 2021","format":false,"excerpt":"\r Any potential measure to reduce EIP\u2019s economic impact should apply to all racesWith more HDB flat sellers from minority groups coming forward to appeal the EIP, the Ministry of National Development\u00a0is carefully studying the situation. More flat sellers from the minority races have appealed the Ethnic Integration Policy (EIP),\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/HDB-flats-in-Ghim-Moh-1.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":120596,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ethnic-integration-policy-for-public-housing-a-direct-and-real-financial-burden-for-minorities\/","url_meta":{"origin":121077,"position":3},"title":"Ethnic Integration Policy for public housing\u2014a \u2018direct and real\u2019 financial burden for minorities","date":"June 28, 2021","format":false,"excerpt":"\r Ethnic Integration Policy for public housing\u2014a \u2018direct and real\u2019 financial burden for minoritiesThe Ethnic Integration Policy for public housing states minorities can only sell to another\u00a0minority member, should the majority race quota\u00a0been met, limiting the opportunity to sell their flats. Workers\u2019 Party (WP) Secretary-General Pritam Singh said minorities in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/06\/older-hdb-flats-still-in-demand.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":99118,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-plans-to-buy-back-unsold-flats-due-to-ethnic-integration-policy\/","url_meta":{"origin":121077,"position":4},"title":"No plans to buy back unsold flats due to Ethnic Integration Policy","date":"October 4, 2018","format":false,"excerpt":"\r The policy was introduced in 1989 and ensures there is a balanced mix of ethnic groups in HDB estates. The government has no plans to buy back flats from homeowners who claim they are unable to sell their units due to the Ethnic Integration Policy (EIP), said National Development\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":125225,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-to-buy-back-flats-from-owners-constrained-by-eip-yishun-hdb-jumbo-flat-sold-for-over-1mil-and-more\/","url_meta":{"origin":121077,"position":5},"title":"HDB to buy back flats from owners constrained by EIP, Yishun HDB jumbo flat sold for over $1mil, and more","date":"March 15, 2022","format":false,"excerpt":"\r 8th March to 14th March 2022 The Housing and Development Board (HDB) will offer to buy back flats from eligible owners facing difficulties selling their homes due to constraints from the Ethnic Integration Policy (EIP). Low-income families, who are second-timer applicants, planning to acquire\u00a0an\u00a0HDB flat will now enjoy higher\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/03\/HDB-BTO.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/121077"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=121077"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/121077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/121078"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=121077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=121077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=121077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}