PROJECT

So i guess this will be my first ever project to be done in high school. So basically our main aim on doing this project is to learn more about the theory of demand. We have been told by our economics teacher to do a research on a housing development project on the factors affecting demand and factors affecting supply of that particular housing project. We then have to calculate the ped, yed and xed of the project and lastly make an evaluation. 

After being told what we were suppose to do for our projects, many thoughts came running through my mind. I mean its definitely our first time working together. Will it turn out well? Were we able to complete them in time? It's the night before our presentation, I'm glad to say that we're almost done with the project. 

Everyone has their different criteria when deciding to buy a house. Either its within area with  easy access to the public transportation (Lrt, bus stop), single storey house?, double storey house? We call all those factors affecting demand. There are many other factors evolving when buying a house. One of the most important factor is the price. Factor of affordability. We did a survey surveying buyers on what they think is most important when buying a house. Majority chose factor of affordability being most important. What's the point if he/she sees her dream house but can't afford it. They will have to settle for another house that is within their budget. The availability of loans are one of the factors as well which is also the complement to the housing project. 

After getting to know on factors affecting demand of a housing project, we now talk about factors affecting supply. I always had this simple mindset that it is easy to start a new housing project. Architects designing the plan, contractors start building and taaa-daa, a brand new house ready to be sold. Guess i was wrong. There are so many things to be done before getting a property built. An important factor would be the customers preference. If this factor was unknown and when the property has been without meeting the customers preference suppliers will face a hard time selling them.

There are so many properties being built. Land, labour, capitals. All these are important resources that we need before being able to build a house. Developers have to know the price range for the houses, whether they would like to build a middle priced housing project or a lower priced housing project. This is important so that developers does not exceed the limit for their cost of production. 

Our housing project,  Kingsley Hills is a luxury good which is an elastic good. Developers should decrease the price of the houses so that more customers will buy it. However, in the real world, developers would not decrease the prices simply because they will suffer a loss as the cost of production has been high. 

I can say that I've absorb some knowledge throughout this project. It made me understand better on this chapter regarding theory of demand. Carrying out this project together with my classmates made things easier to understand and of course, learning became funner. Oh yes, and from now on, at least I'll know how troublesome and all the many decisions i will be making when buying my own house in the future =p