Singapore wants to make public housing more affordable ahead of elections. That’s creating another headache for developers already under pressure from plunging sales and home prices.
Prime Minister Lee Hsien Loong said Sunday he’s boosting grants for public housing, where more than 80% of Singaporeans live. He will also raise the household monthly income ceiling to qualify for new units by $2,000 to $12,000 and to $14,000 for more upscale executive condominiums to ensure homes are within reach for more of its citizens.
Developers are already grappling with falling prices and lower sales after the government began introducing residential curbs in 2009 as low interest rates and demand from foreign buyers raised concerns that the property market was overheating. More generous public-housing rules are likely to hurt demand from middle-income families who otherwise would have had to buy on commercial terms.
“The move will impact sales of mass-market private homes, which are already suffering from a loss in demand due to the property curbs,” said Donald Han, Singapore-based managing director at real estate broker Chestertons.
Monthly private home sales have dropped to about a third the level prior to the mortgage curbs in 2013, Han said. Mass- market homes account for about half the monthly sales. For Singaporeans who live in public housing, about 90% own their apartments, one of the world’s highest ownership rates.
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Prime Minister Lee Hsien Loong said Sunday he’s boosting grants for public housing, where more than 80% of Singaporeans live. He will also raise the household monthly income ceiling to qualify for new units by $2,000 to $12,000 and to $14,000 for more upscale executive condominiums to ensure homes are within reach for more of its citizens.
Developers are already grappling with falling prices and lower sales after the government began introducing residential curbs in 2009 as low interest rates and demand from foreign buyers raised concerns that the property market was overheating. More generous public-housing rules are likely to hurt demand from middle-income families who otherwise would have had to buy on commercial terms.
“The move will impact sales of mass-market private homes, which are already suffering from a loss in demand due to the property curbs,” said Donald Han, Singapore-based managing director at real estate broker Chestertons.
Monthly private home sales have dropped to about a third the level prior to the mortgage curbs in 2013, Han said. Mass- market homes account for about half the monthly sales. For Singaporeans who live in public housing, about 90% own their apartments, one of the world’s highest ownership rates.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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