Prices of Singapore’s public flats to continue increasing: MM
Lee
December 26, 2009
Singapore´s founding father, Minister Mentor Lee Kuan Yew, said
public flats will appreciate in value as long as the country´s
economy continues to grow, reported Channel News Asia.
He was speaking at the launch of The [email protected] yesterday.
Standing at 50 storeys high, this development is the tallest
Housing Development Board (HDB) public housing project in
Singapore.
The issue on public housing affordability is a hotly debated
topic that has divided Singaporeans.
Data from the HDB shows that the Resale Price Index (RPI) has
continued to climb even further, posting a record 145.2 points for
the third quarter.
This is a growth of 3.6 percent over the previous quarter.
While the record rise has benefitted HDB upgraders, young
couples and singles trying to get their first leg into the property
market, are finding HDB resale flats far too expensive.
The property boom means HDB upgraders made at least S$200, 000
in profit when selling their flats this year.
This has enabled them to upgrade to mass market
condominiums.
Young couples and singles, however, have to deal with rising
resale prices and increasing cash-over-valuations (COVs), which
have resulted in many deciding to defer their purchase.
PropNex notes that the overall median COV for the third quarter
is $12, 000.
This is a 300 percent increase compared to the $3, 000 figure in
the second quarter.
The rise in the RPI and COV are due to the lack of supply and
increased demand from both Singaporeans and permanent
residents.
This has prompted the HDB to ramp up supply of its Build to
Order (BTO) flats from 8, 000 to 9, 000 units.
According to government data, Singapore´s population has grown
to almost 5 million.
Of this, approximately a quarter of that is foreign workers.
The number of foreigners getting permanent residency status also
surged more than 11 percent in 2009.
MP Dr Muhammad Faisal, an assistant professor of real estate at
the National University of Singapore (NUS), recently said
young couples who were unable to get an HDB flat should plan
ahead.
However, some say the onus remains with the HDB as the increase
in demand is due partly to the government´s liberal immigration
policy.
haha wat a joke is this
his pay 5 digit a month, of course no problem lar
no money.. then plan wat?
he paying ar?
