Singapore Is Seeing The Rise Of Million Dollar Public Housing

SINGAPORE (Reuters) – Hundreds of public housing apartments in Singapore, one of the world’s most expensive cities, are being sold for more than one million Singapore dollars ($716,000) as construction delays related to COVID create a shortage of new units. At least two units have crossed the million-dollar mark in US dollars, and the high prices are fueling talk of new government measures to try to cool booming property markets. The Southeast Asian city-state’s public housing system – which sells government apartment units directly to citizens on 99-year leases – has resulted in 80% of Singaporeans owning their own homes, one of the highest rates in the world. Many units – known as Housing & Development Board (HDB) flats – are conveniently located near train stations and shopping centers and cater to various socio-economic groups. As ownership is transferred to both citizens and permanent residents after five years, a resale market has emerged. Some apartments originally bought for around S$500,000 now fetch twice that price, depending on size and location. The most expensive public resale flat – a spacious 122 square meter unit near train stations and schools and with a 92-year lease – sold for S$1.418 million this year. For decades, Singaporeans have been using their HDB flats for extra cash by renting them out or reselling them at a profit. “Million dollar HDB flats are here to stay as there will always be people who like to live in central locations or larger spaces,” said Clarence Long, who brokered a public sale of 113 sq m flats. for S$1.4 million in May. “If you’re looking at a similar-sized private apartment in the same location, the price could easily be S$2.5 million,” Long said. Unlike HDB flats, private flats in Singapore usually have security guards and facilities such as swimming pools and gyms. Most first-time apartment buyers in the public sector can apply for government grants and housing loans, making them less affected by rising bank rates and looking to get out of a rental market that has also soared amid the pandemic. The story continues “The monthly mortgage for my HDB flat is about S$3,400, this is much cheaper as the rent for a similar flat now will be about S$5,000,” said Rajiv Malhotra, 45, who bought a public flat 94 sq.m. for S$1.08 million. last year. The percentage of monthly income used for mortgage payments has remained for three years at around 23% on average for public apartment buyers with government loans, the government said late last year. PRICES EXPECTED Singapore’s construction sector, which is heavily dependent on foreign labour, has faced major disruptions amid the COVID-19 pandemic, with tight supplies of materials also leading to delays. Analysts expect tight supply to taper off in early 2023. While million-dollar apartments still account for less than 2% of total transactions, a record 259 public apartments have sold for S$1 million or more last year, official figures show, and there have already been about 230 by August this year year. Those who find the resale market unaffordable can look to purchase off-plan public flats directly from the government, known as HDB Built-To-Order (BTO) public flats, which typically sell for around S$300,000 to S$700,000 . However, most popular BTO projects are oversubscribed and take around five years to complete, pushing many into the resale market. When contacted by Reuters about any new cooling measures under way, HDB did not comment but referred to previous government statements. The Ministry of National Development said last month that the government planned to increase the supply of new BTO flats to meet demand. Singapore announced cooling measures on property markets last December, including an increase in stamp duty and tighter loan limits, and transaction volumes have fallen. “There is a possibility that the government will consider another round of cooling measures given the rise in prices in both the public and private housing markets,” said Christine Sun, senior vice president of research and analysis at OrangeTee & Tie. “But it won’t be easy…because he’s a willing seller, a willing buyer,” Sun added. ($1 = 1.3961 Singapore dollars) (Reporting by Chen Lin in Singapore; Editing by Lincoln Feast)

title: “Singapore Is Seeing The Rise Of Million Dollar Public Housing Klmat” ShowToc: true date: “2022-12-04” author: “Yolanda Choiniere”

SINGAPORE (Reuters) – Hundreds of public housing apartments in Singapore, one of the world’s most expensive cities, are being sold for more than one million Singapore dollars ($716,000) as construction delays related to COVID create a shortage of new units. At least two units have crossed the million-dollar mark in US dollars, and the high prices are fueling talk of new government measures to try to cool booming property markets. The Southeast Asian city-state’s public housing system – which sells government apartment units directly to citizens on 99-year leases – has resulted in 80% of Singaporeans owning their own homes, one of the highest rates in the world. Many units – known as Housing & Development Board (HDB) flats – are conveniently located near train stations and shopping centers and cater to various socio-economic groups. As ownership is transferred to both citizens and permanent residents after five years, a resale market has emerged. Some apartments originally bought for around S$500,000 now fetch twice that price, depending on size and location. The most expensive public resale flat – a spacious 122 square meter unit near train stations and schools and with a 92-year lease – sold for S$1.418 million this year. For decades, Singaporeans have been using their HDB flats for extra cash by renting them out or reselling them at a profit. “Million dollar HDB flats are here to stay as there will always be people who like to live in central locations or larger spaces,” said Clarence Long, who brokered a public sale of 113 sq m flats. for S$1.4 million in May. “If you’re looking at a similar-sized private apartment in the same location, the price could easily be S$2.5 million,” Long said. Unlike HDB flats, private flats in Singapore usually have security guards and facilities such as swimming pools and gyms. Most first-time apartment buyers in the public sector can apply for government grants and housing loans, making them less affected by rising bank rates and looking to get out of a rental market that has also soared amid the pandemic. The story continues “The monthly mortgage for my HDB flat is about S$3,400, this is much cheaper as the rent for a similar flat now will be about S$5,000,” said Rajiv Malhotra, 45, who bought a public flat 94 sq.m. for S$1.08 million. last year. The percentage of monthly income used for mortgage payments has remained for three years at around 23% on average for public apartment buyers with government loans, the government said late last year. PRICES EXPECTED Singapore’s construction sector, which is heavily dependent on foreign labour, has faced major disruptions amid the COVID-19 pandemic, with tight supplies of materials also leading to delays. Analysts expect tight supply to taper off in early 2023. While million-dollar apartments still account for less than 2% of total transactions, a record 259 public apartments have sold for S$1 million or more last year, official figures show, and there have already been about 230 by August this year year. Those who find the resale market unaffordable can look to purchase off-plan public flats directly from the government, known as HDB Built-To-Order (BTO) public flats, which typically sell for around S$300,000 to S$700,000 . However, most popular BTO projects are oversubscribed and take around five years to complete, pushing many into the resale market. When contacted by Reuters about any new cooling measures under way, HDB did not comment but referred to previous government statements. The Ministry of National Development said last month that the government planned to increase the supply of new BTO flats to meet demand. Singapore announced cooling measures on property markets last December, including an increase in stamp duty and tighter loan limits, and transaction volumes have fallen. “There is a possibility that the government will consider another round of cooling measures given the rise in prices in both the public and private housing markets,” said Christine Sun, senior vice president of research and analysis at OrangeTee & Tie. “But it won’t be easy…because he’s a willing seller, a willing buyer,” Sun added. ($1 = 1.3961 Singapore dollars) (Reporting by Chen Lin in Singapore; Editing by Lincoln Feast)

title: “Singapore Is Seeing The Rise Of Million Dollar Public Housing Klmat” ShowToc: true date: “2022-12-07” author: “William Albers”

SINGAPORE (Reuters) – Hundreds of public housing apartments in Singapore, one of the world’s most expensive cities, are being sold for more than one million Singapore dollars ($716,000) as construction delays related to COVID create a shortage of new units. At least two units have crossed the million-dollar mark in US dollars, and the high prices are fueling talk of new government measures to try to cool booming property markets. The Southeast Asian city-state’s public housing system – which sells government apartment units directly to citizens on 99-year leases – has resulted in 80% of Singaporeans owning their own homes, one of the highest rates in the world. Many units – known as Housing & Development Board (HDB) flats – are conveniently located near train stations and shopping centers and cater to various socio-economic groups. As ownership is transferred to both citizens and permanent residents after five years, a resale market has emerged. Some apartments originally bought for around S$500,000 now fetch twice that price, depending on size and location. The most expensive public resale flat – a spacious 122 square meter unit near train stations and schools and with a 92-year lease – sold for S$1.418 million this year. For decades, Singaporeans have been using their HDB flats for extra cash by renting them out or reselling them at a profit. “Million dollar HDB flats are here to stay as there will always be people who like to live in central locations or larger spaces,” said Clarence Long, who brokered a public sale of 113 sq m flats. for S$1.4 million in May. “If you’re looking at a similar-sized private apartment in the same location, the price could easily be S$2.5 million,” Long said. Unlike HDB flats, private flats in Singapore usually have security guards and facilities such as swimming pools and gyms. Most first-time apartment buyers in the public sector can apply for government grants and housing loans, making them less affected by rising bank rates and looking to get out of a rental market that has also soared amid the pandemic. The story continues “The monthly mortgage for my HDB flat is about S$3,400, this is much cheaper as the rent for a similar flat now will be about S$5,000,” said Rajiv Malhotra, 45, who bought a public flat 94 sq.m. for S$1.08 million. last year. The percentage of monthly income used for mortgage payments has remained for three years at around 23% on average for public apartment buyers with government loans, the government said late last year. PRICES EXPECTED Singapore’s construction sector, which is heavily dependent on foreign labour, has faced major disruptions amid the COVID-19 pandemic, with tight supplies of materials also leading to delays. Analysts expect tight supply to taper off in early 2023. While million-dollar apartments still account for less than 2% of total transactions, a record 259 public apartments have sold for S$1 million or more last year, official figures show, and there have already been about 230 by August this year year. Those who find the resale market unaffordable can look to purchase off-plan public flats directly from the government, known as HDB Built-To-Order (BTO) public flats, which typically sell for around S$300,000 to S$700,000 . However, most popular BTO projects are oversubscribed and take around five years to complete, pushing many into the resale market. When contacted by Reuters about any new cooling measures under way, HDB did not comment but referred to previous government statements. The Ministry of National Development said last month that the government planned to increase the supply of new BTO flats to meet demand. Singapore announced cooling measures on property markets last December, including an increase in stamp duty and tighter loan limits, and transaction volumes have fallen. “There is a possibility that the government will consider another round of cooling measures given the rise in prices in both the public and private housing markets,” said Christine Sun, senior vice president of research and analysis at OrangeTee & Tie. “But it won’t be easy…because he’s a willing seller, a willing buyer,” Sun added. ($1 = 1.3961 Singapore dollars) (Reporting by Chen Lin in Singapore; Editing by Lincoln Feast)

title: “Singapore Is Seeing The Rise Of Million Dollar Public Housing Klmat” ShowToc: true date: “2022-12-05” author: “Andy Kirk”

SINGAPORE (Reuters) – Hundreds of public housing apartments in Singapore, one of the world’s most expensive cities, are being sold for more than one million Singapore dollars ($716,000) as construction delays related to COVID create a shortage of new units. At least two units have crossed the million-dollar mark in US dollars, and the high prices are fueling talk of new government measures to try to cool booming property markets. The Southeast Asian city-state’s public housing system – which sells government apartment units directly to citizens on 99-year leases – has resulted in 80% of Singaporeans owning their own homes, one of the highest rates in the world. Many units – known as Housing & Development Board (HDB) flats – are conveniently located near train stations and shopping centers and cater to various socio-economic groups. As ownership is transferred to both citizens and permanent residents after five years, a resale market has emerged. Some apartments originally bought for around S$500,000 now fetch twice that price, depending on size and location. The most expensive public resale flat – a spacious 122 square meter unit near train stations and schools and with a 92-year lease – sold for S$1.418 million this year. For decades, Singaporeans have been using their HDB flats for extra cash by renting them out or reselling them at a profit. “Million dollar HDB flats are here to stay as there will always be people who like to live in central locations or larger spaces,” said Clarence Long, who brokered a public sale of 113 sq m flats. for S$1.4 million in May. “If you’re looking at a similar-sized private apartment in the same location, the price could easily be S$2.5 million,” Long said. Unlike HDB flats, private flats in Singapore usually have security guards and facilities such as swimming pools and gyms. Most first-time apartment buyers in the public sector can apply for government grants and housing loans, making them less affected by rising bank rates and looking to get out of a rental market that has also soared amid the pandemic. The story continues “The monthly mortgage for my HDB flat is about S$3,400, this is much cheaper as the rent for a similar flat now will be about S$5,000,” said Rajiv Malhotra, 45, who bought a public flat 94 sq.m. for S$1.08 million. last year. The percentage of monthly income used for mortgage payments has remained for three years at around 23% on average for public apartment buyers with government loans, the government said late last year. PRICES EXPECTED Singapore’s construction sector, which is heavily dependent on foreign labour, has faced major disruptions amid the COVID-19 pandemic, with tight supplies of materials also leading to delays. Analysts expect tight supply to taper off in early 2023. While million-dollar apartments still account for less than 2% of total transactions, a record 259 public apartments have sold for S$1 million or more last year, official figures show, and there have already been about 230 by August this year year. Those who find the resale market unaffordable can look to purchase off-plan public flats directly from the government, known as HDB Built-To-Order (BTO) public flats, which typically sell for around S$300,000 to S$700,000 . However, most popular BTO projects are oversubscribed and take around five years to complete, pushing many into the resale market. When contacted by Reuters about any new cooling measures under way, HDB did not comment but referred to previous government statements. The Ministry of National Development said last month that the government planned to increase the supply of new BTO flats to meet demand. Singapore announced cooling measures on property markets last December, including an increase in stamp duty and tighter loan limits, and transaction volumes have fallen. “There is a possibility that the government will consider another round of cooling measures given the rise in prices in both the public and private housing markets,” said Christine Sun, senior vice president of research and analysis at OrangeTee & Tie. “But it won’t be easy…because he’s a willing seller, a willing buyer,” Sun added. ($1 = 1.3961 Singapore dollars) (Reporting by Chen Lin in Singapore; Editing by Lincoln Feast)