Singapore is among the top cities around the globe. Singapore last week saw hundreds housing units for the public sector being offered for sale at over $1 million Singapore dollars, which amounts to about $176,000.
This is because the COVID-19 delays to construction caused a shortage of housing units.
The property market is booming
There are at most two houses that have seen their value over the 1 million dollar mark in US dollars.
The high cost of property has fueled discussions of being introduced with new policies by the government to control the rising property market.
The housing system that is public in Singapore, the Southeast Asian city-state has allowed nearly 80% of the residents living in Singapore to own their own homes.
It is one of the most high rates anywhere and it has happened due to the system offers apartments built through the state to residents of Singapore directly through a lease that lasts 99 years.
They are frequently known as Housing & Development Board (HDB) flats. They are also located in an ideal location.
A few of them are situated near train stations and malls and are a great resource for a range of social classes.
Resale market
Additionally, you can find a resales market since ownership can be transferred to permanent residents and citizens within five years.
Many properties that were originally purchased at a price of S$500,000 are now sold at a price twice that in relation to location and the size.
The most expensive flat in the public sector that was resold in the year was at a price that was S$1.418 million. The flat is remaining lease for 92 years and is spacious with 122 square meters, and is located near trains and schools.
HDB flats are utilized by Singaporeans for many years to sell them at a profit or rent out to earn additional cash.
Experts think that these flats will remain for a long period of time as they will be residents who want to reside in bigger spaces or in central areas.
Private condos
Comparatively to HDB flats private condos in the same area and size may cost about S$2.5 million. The condos are equipped with amenities such as gyms and swimming pools as well as security personnel.
Many first-time buyers of flats in the public sector can apply for loans from the government and housing grants, meaning they won’t be affected by the rising rates of interest.
A large number of people want to leave the rental market that has increased dramatically in the course of the COVID-19 pandemic. The people who have used government loans to purchase flats have to contribute 23 percent of their income for mortgage.
There were significant disruptions in the construction sector in Singapore as a result of the COVID-19 epidemic because it is heavily dependent on foreign workers.
There were delays as well because of the limited supply of materials. According to experts they expect this to decrease by 2023.
Although less than 2% the total transactions involve million-dollar flats approximately 259 housing units have been sold at more than $1 million in the last year.
