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 …

Mandarin Top 5

Top 5 Must-Know Facts about Luxury Properties in Districts 9 of Singapore

Jayson Ang – August 19, 2024 –

Singapore, a bustling city-state known for its impressive skyline and vibrant economy, has always been an attractive destination for property...

All Blog Posts Buying Tips

HDB Loan Vs Bank Loan: Pros & Cons

Jayson Ang – February 25, 2023 –

TLDR When deciding between an HDB loan or a bank loan for purchasing a property in Singapore, consider key factors...

Mandarin Top 5

Top 5 Differences Between OCR, RCR And CCR In Terms Of Lifestyle And Culture

Jayson Ang – April 15, 2025 –

Singapore, a vibrant and diverse city-state, is known for its unique blend of cultures, modern architecture, and thriving economy. The...

All Opinion

Why En Blocs Often Fail to Succeed

Jayson Ang – April 26, 2024 –

TLDR In this blog post, the focus is on the challenges and complexities of en-bloc transactions in Singapore's property market....

Mandarin Top 5

5 Tips : How To Negotiate A Good Deal When Buying A Singapore Property

Jayson Ang – July 12, 2024 –

When looking to buy a property in Singapore, it's essential to know how to negotiate a good deal. Here are...

All Blog Posts

Singapore Private Residential Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR The Singapore residential property market has shown resilience in 2022, with price growth in both private housing and HDB...

Mandarin Top 5

Top 5 Shopping Malls in Singapore for Luxury Shopping

Jayson Ang – March 5, 2024 –

Singapore, a bustling city-state known for its stunning architecture and diverse culture, is also a paradise for luxury shopping enthusiasts....

All Buying Tips Opinion

I Wouldn’t Rely Too Heavily On Discounts Related To ABSD This Year

Jayson Ang – February 28, 2025 –

TLDR The ABSD discount arises when developers approach their five-year deadline to sell 90% of units, facing a 40% penalty...

All Buying Tips Opinion

Should You Splash Your Cash on a Condo Despite the Sky-High PSF?

Jayson Ang – December 2, 2023 –

TLDR The blog post discusses various aspects of investing in condos in Singapore, covering topics such as leasehold versus freehold...

Mandarin Top 5

Why Property Investing is the Key to Early Retirement in Singapore

Jayson Ang – April 28, 2024 –

Investing in property is a popular way to build wealth and achieve financial freedom in Singapore. With the right strategies...

Mandarin Top 5

5 Reasons Why It’s A Great Time To Buy Property In Singapore In 2024

Jayson Ang – February 24, 2024 –

Singapore's property market is known for its stability, high demand and strong returns. With a growing population, low unemployment rates,...

Mandarin Top 5

Top 5 : How Does One Choose Good Property In Singapore?

Jayson Ang – January 28, 2025 –

Choosing a property in Singapore can be an exciting yet challenging endeavor. With the city-state's dynamic real estate market, it...

Mandarin Top 5

Top 5 : Questions Should Investors Be Asking Before Investing In Singapore’s High-End Rental Market

Jayson Ang – February 1, 2025 –

Singapore's high-end rental market has been a hot topic of discussion among investors worldwide. With the city-state's robust economy, excellent...

Buying Tips Mandarin Top 5

5 Reasons Why You Should Consider Investing In Singapore Real Estate

Jayson Ang – August 1, 2023 –

TLDR Investing in Singapore real estate offers attractive tax incentives, low cost of living, high rental yields, market reliability, diversification...