Singapore Sees Potential Growth in Public Housing Market

The selling price for Housing & Development Board (HDB) flats in Singapore continues to rise by more than S$1M due to the shortage of units caused by construction delays amid the pandemic. Despite its low transaction volume, about 259 million-dollar public flats were sold last year and an additional 230 by August this year, according to a report from Reuters on Aug.31.

The city-state's construction sector also experienced material supply disruptions which exacerbated the delay. Experts anticipate that the tight supply will ease off in 2023.

Applying for government housing subsidies and loans is recommended for first-time buyers of HDB flats to avoid paying the rising bank interest rates and rental market costs.

Moreover, the HDB Built-To-Order (BTO) public flats are more affordable as it can be purchased directly from the government for about S$300,000 to S$700,000. However, the completion of this project may take around five years, which is why prospective buyers opt for the resale market instead.

The Ministry of National Development announced in July that they would increase the availability of new BTO units to accommodate growing demand.