Household income and its relationship to demand Newlyweds with family earnings of $8,000 are not eligible for HDB subsidized property prices.
Assuming that couples belonging to the average household earnings calculated at $8,000 would plan to buy a condominium. They require to hold a Cash-over-valuation sum to aid them take care of the down payment. This is true only if this group of people already have an HDB. Nonetheless, if they buy the property for the first time, they would be able to afford only properties with market values ranging from $1.08m to $1.35m at the optimum. A household constituting of of two people could afford a condominium with an area 800 to 1,100 square feet. The conservative maximum estimate affordable real estate properties level of $1m to $1.1m could present a $909 psf to $1,375 psf household affordability level depending largely on the unit size. The likely consequences for this problem are: • A drop of the HDB supply would lead to a corresponding expected HDB price increase. • The increase of HDB price would lead to some extent an upgrading or raise of the mass consumers condominium market prices (normally funded by HDB sales profits) •
We do not consider HDB properties as investment grade properties as there are way too much restrictions and limitation on equity. The rights of such properties are also limited. Property Buyers should be careful when wanting to invest in singapore properties.
The affordability level of the household could suppot prices ranging from $909 psf to $1,375 psf, which have an area of 800 to 1,100 sq feet. This is valid if they directly purchased overlapping HDB and that the household total average earnings level is $8,000. • Sadly, this constitute as a good alibi for the government of Singapore to increase the prices for the real estate because most people could afford it. They will then share the cost to the developers of these properties, and then pass the cost to your end. Singapore mass market private properties may even possibly reach to the level of $1,200 psf because of the simple understanding that it is affordable. This condition may prevail considering that the employment is stable and that the GDP is also growing. HDB prices could vary because of the there is no balance between the supply and demand. The Singapore government hasn’t responded to the under supply of HDB, which resulted to massive rise of property prices. The timing for the increase of the prices relates to the fact that the prices were already affordable to the common family. This boosts the capability of the government of Singapore to benefit from more land sales. Nevertheless, the context of releasing more private lands to make condominiums by the government, would possibly create an oversupply in the private residential market sector.
