Most Singaporeans don't live in a nice home with a garden and a bit of space around it, they live on government estates (otherwise known as HDB) and receive lots of subsidies to keep them happy so they'll continue to vote for the ruling PAP party (although it doesn't work, they still complain about everything despite being probably one of the most pampered nations of people on the planet)Rani's wrote:I'm looking to settle in Singapore in the near future, as I'm engaged to be married to a Singaporean, but I can't help asking myself if the prices are real - both for rented and purchased properties alike.
I don't expect anyone's able to put any light on this question, so I apologise for writing it, but I'm wondering how the prices have been allowed to become the way that they are. Is it a case of profiteering? The construction costs of the building must surely be far less than the prices currently being asked.
Given that it seems to cost at least GBP 2m to buy a nice home with garden and a bit of space around it, I just can't understand how normal people are able to afford a home in Sg.
It also seems that the typical salary of normal Singaporeans just isn't enough to own their own home. How do they manage? Sorry, but I don't mean to ask irrelevant questions, but I'm struggling to reconcile the prices being asked.
Thanks JayCee, I can see that I have a lot to learn about Sg. Phew.JayCee wrote:Most Singaporeans don't live in a nice home with a garden and a bit of space around it, they live on government estates (otherwise known as HDB) and receive lots of subsidies...
Just to note, even with all that, there have been grouses that the HDBs are still too expensive for them.Rani's wrote:Thanks JayCee, I can see that I have a lot to learn about Sg. Phew.JayCee wrote:Most Singaporeans don't live in a nice home with a garden and a bit of space around it, they live on government estates (otherwise known as HDB) and receive lots of subsidies...
I think from reading this, it is increasingly looking difficult to settle in Singapore, although I really want to do so, and ultimately wish to settle down with my fiancee and get married.Strong Eagle wrote:Property prices are a very serious problem in Singapore. While it has generally not been possible for non Singaporeans to buy landed properties, shop houses, and the like, the purchase of condos has been wide open...
An interesting post and I agree with much of what you said. But I have some trouble digesting the above. It would suggest that the country is a perpetual hostage to what banks will lend, but regulation is surely within their remit.Strong Eagle wrote: ... But, the Singapore gahmen is essentially screwed. Who owns the mortgages on all that expensive property? Singapore banks, the lifeblood of Singapore. Even if the gahmen wants to create more affordable housing, it can't really afford to see a drop in property values... and underwater mortgages... because then the banks are in trouble.
A bloody mess.
Probably that's the reason why people want to buy; you earn more by renting it out at an amount way higher than your monthly instalments.zzm9980 wrote:Please point these out, I'll be the first to rent one! Everywhere i look rent is at *least* 50% more than what a typical mortgage payment would be with 20% down.revhappy wrote:As long as monthly installments is same as rents people will continue to buy and that causes prices to go up.
Precisely, I just bought and took out a 20-year loan with my amortization around the same as my monthly rental. And it is a bigger unit (as I have a big family) so we're hoping that any wild swings in price (on a psf basis) will be manageable. But this is for my own use and not for investment..the lynx wrote:Probably that's the reason why people want to buy; you earn more by renting it out at an amount way higher than your monthly instalments.zzm9980 wrote:Please point these out, I'll be the first to rent one! Everywhere i look rent is at *least* 50% more than what a typical mortgage payment would be with 20% down.revhappy wrote:As long as monthly installments is same as rents people will continue to buy and that causes prices to go up.
The government can't quite control prices going up astronomically, and vice versa! They can try, and always have, but apart from a controlled economy, the problem is nobody ever knows when high has become too high, and low become too low. Until that point is actually reached.JR8 wrote:For me the question remains. Why are prices being allowed to get this out of control?
The thing is, I don't see how this state of affairs can persist based on current circumstances and trends. And this is exactly what is keeping a lot of owners afloat.the lynx wrote:Probably that's the reason why people want to buy; you earn more by renting it out at an amount way higher than your monthly instalments.
One citizen and one permanent resident will do, subject to all other conditions of course found here: http://www.hdb.gov.sg/fi10/fi10321p.nsf ... itizenshipRani's wrote:May I ask how the prices of HDB flats are set? Is the price when new dictated by the open market, or by the Government's price?quote]
Most interesting question! New HDB flats are sold to eligible citizens at a price that is benchmarked against resale prices (in the vicinity), and then discounted (that discount is called the market subsidy).
4-room flats in Sengkang were being hawked by HDB for under $200k in 2002, and the ones they were hawking now or, maybe a year or so back, c. $400k. Something to that effect. For an identical good, to all intents and purposes.
They built too many before that, and found that there were no takers until everything had been built. So they pretty much stopped building public homes for years, and when a high level government decision was taken to rapidly increase Singapore's resident population, HDB didn't get the memo obviously. Nor did anyone else for that matter!
So now apparently Singapore has a dire shortage of homes and everyone ranging from the HDB to my next door neighbour is building, building building!
Rani's wrote:Also, are a mixed Singaporean/Western married couple (30 years old) allowed to purchase an HDB flat?
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