Your search results

Why Can’t Everyone Have Homes In Good Locations?

Posted by Jayson Ang on March 9, 2024

| 0

TLDR

In a nutshell, the Singapore property market is undergoing significant changes, with the introduction of a new housing classification system that offers increased subsidies for properties in prime locations. However, stricter regulations such as a minimum occupation period of 10 years will apply. Experts caution against the feasibility of continually constructing new homes in mature estates due to land scarcity and the challenges associated with building taller structures. Balancing demand for well-established locations with practicality is a key focus in HDB estate construction. Ultimately, the decision to buy, sell, or wait on property investments should be based on individual circumstances. For comprehensive real estate advice and successful property transactions, leveraging data-driven insights and expert guidance is crucial in navigating the dynamic Singapore property market landscape.

Ms. Lim, a university student, and her significant other, Mr. Lee, believe that the geographical location of their future home is fundamentally important since they have no plans to purchase an automobile.

“Our preference is for a Build-to-Order (BTO) flat within a comfortable walking distance of an MRT station,” she stated.

Moreover, they desire to reside in close proximity to their parents who live either in Bedok or Jurong East. They have made attempts to apply for flats in these areas but unfortunately, their efforts have been unsuccessful thus far.

Their preferences align with those of several other young couples who have previously expressed to the media that they won’t compromise on certain factors when applying for a BTO flat, such as being near their parents and having easy access to public transportation.

In the most recent National Day Rally, Prime Minister Ng Chun Pin announced the introduction of a new “Plus” model to categorize public housing projects starting from the latter half of the next year. This will lead to the gradual discontinuation of the existing mature and non-mature estate classification system.

Under this new categorization, buyers of Plus and Prime flats — located in more sought-after locations — will receive increased subsidies from the Housing Development Board (HDB). However, they will also be subject to stricter regulations, including a minimum occupation period of 10 years. Any additional subsidies received by applicants will need to be repaid to HDB upon resale, among other restrictions.

Young couples who had previously spoken to the media about not compromising on certain attributes when applying for a BTO flat, such as proximity to parents and connectivity to transport nodes, might find these changes particularly relevant, especially those eyeing flats next to Kallang MRT station.

Dr. Lim Jia Hui, regional director for Singapore at PropertyGuru Group, shared, “These enhanced measures aim to promote fairness and discourage the perception of treating HDB flats as investment opportunities.”

He continued, “We should allow this novel reclassification system to fully unfold and share our insights via government channels when the time is right.”

Specialists in the field noted that it would be unfeasible to continually construct new homes within existing housing estates to accommodate everyone close to their parents, given the scarcity of land.

Can the Government not build higher flats and augment the flat supply in mature estates?

This proposition, though attractive, involves uprooting residents from current flats to pave way for newer ones. Moreover, building skyscraping flats also has its restrictions, the experts elucidated.

“There are boundaries to how tall our flats can be. We must take into account factors like aircraft flight paths, wind circulation, and the shadow cast by towering structures on shorter buildings,” advised Mr. Tan Wei Ming from Huttons Asia.

Dr. Lim from PropertyGuru highlighted other constraints such as increased construction expenses with taller structures and potential traffic jams.

“The Master Plan’s vision is to establish job clusters and enhance the allure of suburban regions, akin to Tengah,” stated Dr. Lim.

He added, “The demand for well-established and desirable locations is endless. Therefore, balancing this demand while ensuring viability will be a prime focus in the construction of HDB estates.”

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Blog Posts Buying Tips

Subscribe to Jayson Ang’s Singapore Property Newsletter

Jayson Ang – December 27, 2022 –

TLDR Jayson Ang's Singapore Property Newsletter offers valuable insights on real estate investments, market trends, and expert advice. The newsletters...

All Buying Tips Opinion

I Bought a Mega-Home : Hear 7 Homeowners Spill their Heartfelt Remorse

Jayson Ang – December 22, 2023 –

TLDR The article discusses various challenges faced by residents living in massive condo complexes in Singapore. From long elevator wait...

All Buying Tips Opinion

My 6 Factors to Consider When Buying a Property in 2023

Jayson Ang – March 11, 2023 –

As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...

All Buying Tips

Downpayment For Condo: How Much Do First-Timers Need In Singapore?

Jayson Ang – March 12, 2024 –

TLDR The blog post delves into the complexities of condo downpayments in Singapore in light of the impact of Covid-19...

All Blog Posts Buying Tips

Resale Viewing Do’s and Don’ts: Expert Advice from a Singapore Real Estate Agent

Jayson Ang – December 19, 2022 –

TLDR The blog post provides valuable insights for first-time buyers on navigating the resale property market in Singapore. It covers...

All Buying Tips Opinion

Debunked! 6 Popular Property Myths of 2023, Including the 99-1 Loophole – Legal or Not?

Jayson Ang – January 4, 2024 –

TLDR This blog post delves into various aspects of the Singapore property market, including topics such as decoupling, 99-1 property...

All Blog Posts Opinion

Where to Find the Most Affordable New Launches in 2023 – Starting at $1.31 Million

Jayson Ang – January 24, 2023 –

TLDR When looking for an affordable new launch condo in Singapore as of January 2023, consider projects like 10 Evelyn,...

Mandarin Top 5

Top 5 Vegetarian Restaurants in Singapore

Jayson Ang – March 14, 2024 –

Singapore, a melting pot of cultures and cuisines, offers a diverse range of dining options for food enthusiasts. For vegetarians,...

Buying Tips Mandarin Top 5

5 Qualities to Look for in an Agent to Ensure a Smooth Transaction

Jayson Ang – June 23, 2023 –

5 Qualities to Look for in an Agent to Ensure a Smooth Transaction Here are 5 qualities to look for...

Mandarin Top 5

5 Tips for Renting Property in Singapore

Jayson Ang – March 15, 2024 –

Renting property in Singapore can be a challenging task, especially for those who are new to the country. With Singapore's...

All Reports

Transaction Volumes Remained Subdued Due To The Dearth Of Inventory In Q4 2022

Jayson Ang – March 27, 2023 –

TLDR The Urban Redevelopment Authority (URA) Flash Estimates for Q4 2022 show a 0.1% increase in non-landed private home prices...

All Blog Posts Buying Tips

Buying a Second Property – 3 Key Factors to Consider

Jayson Ang – June 18, 2023 –

TLDR When navigating the complexities of purchasing a second property in Singapore, ensure you meet eligibility criteria, consider affordability factors...

All Blog Posts

3 Steps to Protect Yourself from Real Estate Scams in Singapore

Jayson Ang – December 17, 2022 –

Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...

Mandarin Top 5

Top 5 Rooftop Pools in Singapore for a Swim

Jayson Ang – March 30, 2024 –

Singapore, a bustling city-state known for its iconic skyline and innovative architecture, is home to some of the most stunning...

All Buying Tips

Crucial Facts : All First Time Buyers Need to Know

Jayson Ang – December 7, 2022 –

TLDR When it comes to property investment for first-time buyers in Singapore, careful planning and early action are key. Consider...

All Buying Tips Opinion

Craving Dream Homes in the Urban Jungle: The Singaporean Dilemma Unveiled

Jayson Ang – May 10, 2024 –

TLDR The housing landscape in Singapore reflects evolving aspirations and desires, especially among the younger generation. Owning private property is...

All Blog Posts Buying Tips Opinion

Freehold Properties vs Leasehold Properties: Which is Better?

Jayson Ang – June 26, 2023 –

TLDR When it comes to property investments in Singapore, understanding the differences between leasehold and freehold properties is crucial. This...

All Opinion

Housing Affordability in 2023: Is Singapore Property Truly Unaffordable?

Jayson Ang – November 4, 2023 –

TLDR Singapore’s property market faces challenges with high prices, especially in private housing. While public housing remains more affordable, the...