In the recent years from 2020 to 2022, the real estate industry, specifically apartment sector, in Vietnam has had several emergent events in different market segments.

High-end apartment segment

The sales and prices of high-end apartments (so called "grade A apartments" with price level above 40 million VND/sqm) has been increasing (Zingnews 2021 and Vietnamnews 2022).

Single-occupancy apartment segment

The single-occupancy apartments has attracted the public attention with the changes in demographics of single-person households (Rude 2020 and Vietnamplus 2021) and government's approval of new regulation allowing construction projects of micro-apartment sizes (Nguyen 2020, Hong Khanh and Thuy Tien 2022).

Affordable apartment segment

The affordable apartments (so called "grade B and grade C apartments" with the price levels ranging from 25 million VND to lower than 40 million VND/sqm) have become scarce in the urban cities of the country (Vietnam Investment Review 2021 and Thuy Tien 2022)

Each apartment segment can be viewed as a market of a kind of apartment product. The market segment topic (Segment 0 - High-end apartment market, Segment 1 - Single-occupancy apartments, Segment 2 - Affordable apartment market) is assigned to you randomly. Get the sum of the last 2 digits in your student id, then divide it by 3 and get the remainder. The remainder is the number of the topic assigned to you above.

Develop the analysis of market equilibrium mechanism of the assigned topic. Following are the questions about the market adjustments of the three market segments.

Segment 1 - The single-occupancy apartments:

Given the recent changes in the demographics of Vietnamese household sizes and the Government's regulatory update for micro-apartments (cited above), what are the possible market situations going on with this real-estate product? Are there any change/s in demand and supply of this product? Does the market likely have shortage or oversupply? Would there be likely the increases or decreases in market price and quantity?

Make sure you explain your answer and support it with evidence (by facts and figures) of the market based on your additional research. You are also expected to illustrate your analysis by a clearly-labelled graph.