Versioning model in dual housing markets and its application

• Main Authors: Zhang, Dongxu, Zhang, Jianhuan, Zhou, Qin
• Other Authors: Yao Shuntian
• Format: Final Year Project
• Language: English
• Published: 2012
• Subjects: DRNTU::Social sciences::Economic theory; DRNTU::Social sciences::Economic development
• Online Access: http://hdl.handle.net/10356/50801
• Institution: Nanyang Technological University

Versioning model has been frequently used to explain information economy, yet its application in housing markets seems absent. As housing market is a crucial determinant in defining countries’ economic and social welfare status, in this paper, versioning model is modified to explain the general mechanisms of housing markets and housing welfare re-distribution systems. In particular, the key relevant policies and regulations (e.g. income ceiling restriction, resale restriction and subsidy plan) of Singapore are examined to verify the effectiveness of the model, as Singapore is superior to many major Asian housing markets in maintaining housing price and promoting housing welfare. Under the assumption of existence of only two types of consumers (high-end and low-end consumers), our results show that the modified versioning model is not only capable of explaining dual housing market in Singapore, but also a theoretical guidance which can be applied to other emerging housing market, such as China. This project also implies the possibility of promoting welfare public housing and maintaining private market sectors at the same time based on the modified versioning model and it will be able to contribute to future research and policy making on Asian housing markets