Your search results

Why Can’t More People Own Private Property?

Posted by Jayson Ang on April 2, 2024

| 0

TLDR

The blog post discusses the aspirations of individuals like Siti and Mr. Tan regarding property ownership in Singapore. Siti hopes for more land allocation for private properties, recognizing the potential impact on housing prices. On the other hand, Mr. Tan seeks eased restrictions on acquiring a second property. Experts highlight the complexities of increasing private property demand and pricing dynamics, with Mr. Lee emphasizing developers’ influence on pricing. The article also touches on Singapore’s high private home prices compared to median incomes and government policies favoring first-time homeowners. Lastly, it provides real estate advice and insights for readers navigating Singapore’s property market.

Under the alias of Siti, an undergraduate student expresses her aspiration to one day become a private property owner. She mirrors the sentiment of many in her age group, holding faith that private properties not only appreciate more in value but also endow a sense of personal accomplishment.

Siti articulates her receptiveness towards the idea of the government dedicating more land to private property development. She acknowledges the potential downside of this strategy, which could result in a general surge in housing prices, and labels this consequence as “less than perfect”.

Meanwhile, Tan Wei Ming, aged 45, his spouse and their two offspring reside in a public apartment. Mr. Tan and his wife harbor the dream of acquiring a second property as an investment, a dream that currently feels somewhat elusive.

Mr. Tan expresses his optimism that the government might ease restrictions regarding the purchase of a second property. Specifically, he hopes for the abolition of the waiting period for homeowners to acquire a second property after their first flat reaches its Minimum Occupation Period (MOP).

He argues that compelling homeowners to wait five years before they can invest in a second property could result in missed lucrative investment opportunities. Furthermore, Mr. Tan suggests that if the government allocates more land for private housing developments, the increased supply might trigger a decrease in prices.

Experts have indicated that relaxing the rules for purchasing private property could stimulate an increase in demand, thereby escalating the prices. They maintain that even if additional land is allocated for private development, it doesn’t necessarily mean that prices will plummet.

Mr. Lee from IPS noted that private market developers possess the freedom to determine prices according to their discretion.

“If the government sells more land to these private developers, can they really control the housing prices? Developers have the power to set any price they deem fit,” he elaborated.

While competition may exist among developers, this wouldn’t necessarily result in lower prices as their primary objective is to safeguard their profit margins. Moreover, developers would also need to consider the cost of bidding for land parcels for their construction projects, a factor that would influence the final selling price of the properties.

According to recent data from the Urban Land Institute (ULI) Asia Pacific Centre for Housing, Singapore’s median private home price ranked highest among 45 other cities. The report revealed that the median price of Singapore’s private homes was 13.7 times the median annual household income.

From a policy perspective, Mr. Lim stated that the government prioritizes first-time homeowners, making sure they can afford public housing.

“The aim isn’t to make private housing more affordable. That’s not our homeownership policy goal,” he stressed.

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 …

Buying Tips Mandarin Top 5

Investment 101: The Top 5 Best Long-Term Values In Singapore’s Property Market

Jayson Ang – July 10, 2023 –

Investment 101: The Top 5 Best Long-Term Values In Singapore's Property Market When it comes to purchasing property in Singapore,...

All Opinion Reports

NUS Real Estate Survey Reveals Growing Optimism Among Industry Leaders

Jayson Ang – January 17, 2025 –

TLDR A recent survey by the National University of Singapore (NUS) highlights increasing optimism among real estate industry leaders. The...

Mandarin Top 5

Top 5 : Long-Term Economic Impacts Of Foreign Real Estate Investment In Singapore’s Luxury Condo Market?

Jayson Ang – December 19, 2024 –

Singapore has long been a preferred destination for foreign real estate investors, particularly in the luxury condo market. The city-state's...

All Opinion

The Cost of Housing – Affordability vs Premium?

Jayson Ang – August 11, 2023 –

TLDR The blog post discusses the challenges Singapore faces in housing affordability, particularly the rising costs of private homes compared...

Mandarin Top 5

Singapore’s Luxury Real Estate Market: The 5 Most Luxurious Neighborhoods

Jayson Ang – May 14, 2023 –

The 5 most expensive neighborhoods in the city, and are home to some of the most exclusive and opulent properties...

All Buying Tips Opinion

Dual-Key Condo: Analysing The Pros And Cons

Jayson Ang – November 16, 2023 –

TLDR for "Dual-Key Condo: Analysing The Pros And Cons" When considering dual-key condo units, it's important to weigh the advantages...

All Opinion

What Is The Cost Of Constructing A Landed Property In Singapore?

Jayson Ang – February 24, 2025 –

TLDR Building a landed property in Singapore can be a costly endeavor, with prices ranging from $300 to $500 per...

All Blog Posts Buying Tips Opinion Selling Tips

Should You Keep Your Resale HDB Flat When Buying a Private Property? 5 Key Factors to Consider

Jayson Ang – November 3, 2024 –

TLDR In Singapore, owning both an HDB flat and a private property has become complicated due to factors like Additional...

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...