The_Sunday_Studio wrote: ↑
Sat, 01 Jan 2022 11:25 am
Hi all! Happy New Year!
Indeed Singapore govt is trying to keep the property
prices in Singapore affordable. But that will only impact the HDBs a lot. In terms of private properties, there is little the government can do. Given COVID situations and the clamping of Hong Kong recently, I would believe that Singapore Private Property will be a good investment in the coming years.
Philippines is great if you have the money but to compare Philippines and Singapore, believe all would agree that they are not exact comparisons.
Welcome to the forum TSS.
I agree that there is further upward price potential in the property market here, and clearly the government shares that view or else they wouldn’t have ratcheted up the ABSD. But you must know that additional measures will be taken to tamp it down if the current rate of appreciation continues.
However, I believe this is unlikely to impact the HDB market more than private. Singaporeans can’t buy multiple HDB units, and they can’t even buy an HDB if they already own another property. And since Singaporeans pay no ABSD on their first home which is usually an HDB, a higher ABSD should have little direct impact.
That said, the private property market and HDB market cannot be decoupled because government land sales for the development of new HDB blocks use the full unsubsidized market price of the land, plus the actual building cost of the units. Even resale units are based on supply and demand within the intentionally distorted market dynamics due to the HDB resale rulebook. Availability and price of private properties as alternatives definitely plays into the demand for resale HDBs. The higher private properties go, the greater the demand for HDBs.
I am not sure you can count on any large exodus from HK to SG. Hong Kongers have a lot of choices, many of which are more attractive than Singapore. I know it is a popular local narrative being circulated here, the idea that everyone wants to move here… but I haven’t seen any real substance behind it, and the population numbers certainly don’t show it.
As for the Philippines, just the proceeds from selling one HDB flat and investing it appropriately… that alone would be plenty to retire very comfortably for a lifetime in the PI.