Chinese clusters were found in central areas such as Bishan East, Bukit Ho Swee, Cheng San, Holland Drive, Marymount and Tiong Bahru, where the average resale price psm for an HDB flat was between S$3,958.47 and S$6,501.28.
Clusters of Malay homeowners were mostly found in the northern parts of Singapore such as North Coast in Woodlands and Woodlands West and the eastern neighbourhoods such as Tampines East and Pasir Ris Drive. These areas have an average resale price psm of between S$3,000 and S$3,958.46 in the north, and between S$3,000 and S$4,699.24 in the east.
Clusters of Indian households were found in Admiralty, Boon Lay and Pasir Ris Drive where resale prices psm were between S$3,000 and S$3,958.46.
Indian clusters were also found in areas with higher resale prices. These included central areas such as Bendemeer and Kampong Java, where the average resale price psm ranged from S$5,492.51 to S$6,501.28. There were also clusters in the northeast such as Punggol and Sengkang where resale prices psm ranged from S$3,000 to S$4,699.24.
Assoc Prof Leong said that in general, Chinese flat buyers with higher purchasing power are pricing out the minorities with lower purchasing power in the prime and central areas where flats have higher resale value.
“And then minority ethnic groups will move to other places, perpetuating this ethnic clustering effect,” he added.
On clusters of Indian homeowners found in both areas of high and low average resale prices, Assoc Prof Leong attributed it to a “difference in choice... between local-born Indians and naturalised Indians”. He added: “We 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.”
He noted that the Global Indian International School has a campus in Punggol, while Kampong Java and Bendemeer were located near Little India. As such, both areas had amenities which drew Indian permanent residents or naturalised citizens.
https://www.todayonline.com/singapo...rhoods-largely-due-purchasing-power-disparity