RES exam question on Real Estate Market: An economist explains the drivers of the Singapore private residential market to a group…
An economist explains the drivers of the Singapore private residential market to a group of new salespersons. Evaluate the statements: (i) Population growth and household formation are demand drivers (ii) Interest rates affect affordability and hence demand (iii) The property market is cyclical, influenced by economic conditions and policy (iv) Residential property prices only ever rise and never fall Which statements are CORRECT?
- A(i), (iii) and (iv) only
- B(i) only
- C(ii) and (iii) only
- D(i), (ii) and (iii) only
Show answer & explanation
Answer
D. (i), (ii) and (iii) only
Explanation
(i) is correct: population growth and household formation are fundamental demand drivers for housing. (ii) is correct: interest rates affect affordability and borrowing costs, and so influence demand. (iii) is correct: the property market is cyclical, shaped by broader economic conditions and government policy.
Why the other options are wrong
- (iv) is wrong: prices do not only ever rise; residential property prices can and do fall during downturns.
Study the concept behind this question: The Property Market & Government Intervention (Singapore)
Practise more Real Estate Market & Government Intervention questions
Drill the full Real Estate Market & Government Intervention bank with instant answers and explanations — free to start, no card needed.
Related Real Estate Market & Government Intervention questions
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.