Reflection on Kingsley Hills Housing Project

   So today, 4/3/2013, our class (PL1) did a presentation on Kingsley Hills Housing Project. Our presentation covers factors influencing the demand of a good of service, factors influencing the supple of a good or service, explaination and calculation of price elasticity of demand (PED), income elasticity of demand (YED), cross elasticity of demand (XED),  evaluations and limitations. What have I learned today?

     What do poeple look into when buying a real estate property? According to the survey, most people chose whether the price is affordable or not as the most important factor of demand. To me, I think price is very important to me. If I like this house which costs around 3millions but I do not have the money to buy it, in other words it is not affordable by me, I would have to give up on that, even though I really want the house. The survey states that availability of loans is the least important factor. Well, when the price is affordable, poeple do not need loans from the bank. Loans can sometimes be at a disadvantage because of the high interest rates, for instance.

   We have also learnt about factors affecting supply. One of it was experience. It can be the company's experience in dealing with the project. For example, an experienced business man would take greater risk in buying more lands. When he has more lands, the supply will be higher, thus he'd be able to develop the housing project and expand it. Next, the cost of production is also one of the factors affecting supply. The price of getting the building materials and supplies required also play a role in deciding the quantity of housing project that should be supplied.

   From other classes’ presentation, they mentioned about economic ‘boom period’ and the downfall of economic. True enough, during boom period, when economic rises, people can afford to buy more, buy what they desire. But the sad thing is, economic recession will cause people to cut down on stuffs which they desire to buy. Even for the wealthy ones, I think they will also cut down on what they’ve been spending all this while.

   Not to forget, there are limitations as well. Limitation can be the change in demand and supply conditions. As everyone know, housing property development takes a very long time. There’s like the piping system, renovations and all. Because of these, some people might change their minds, they wouldn’t wanna invest in Kingsley Housing Project anymore. Also, the result from the survey is inaccurate, it does not represent the society, the people doing the survey might not be honest about it.