If news from the Singapore property market rings true, the under-supply of housing there may be non-existent. The government has pledged HDB flats for all Singapore no matter how large the citizenry grows.
Yesterday the Singapore Parliament’s National Development Minister Khaw Boon Wan was quoted as having said:
“We will continue to launch more BTO (Build-to-Order) flats, ECs (executive condominiums) and land sales for private condos, for as long as demand remains strong. There is enough land for such new homes to be built.”
This statement supported by numbers equaling some 200,000 plus units under construction. According to the Minister, some 25,000 flats will be produced each year. Also introduced, a so called “Parenthood Priority Scheme (PPS)” will help first time buying couples priority to secure homes, with families with children being the focus there.
In correlated news, the Singapore government has recently taken steps to curb foreign speculation in this housing vacuum, BBC reported last month on an increase stamp duty of 15% compared with the previous one of 10 percent. Competition for commercial and residential properties in Singapore has driven prices sky high, further amplifying the plight of the average Singaporean. Furthermore, buyers who intend on snapping up second home or investment properties there can expect to put down 25% rather than the traditional 10% for first time buyers.
Even with the added measures though, most experts agree that Singapore’s spiraling population will demand many, many more housing starts in the coming years leading up to 2030, when the county’s population is projected to reach seven million or more.