HDB for rental and resale

The increasing number of foreign expatriates coming into Singapore creates competition for houses. The government recently proposed hype news that there will be rising supply of rental HDB flats to meet the population and ensures that there is comfortable accommodation for everyone in Singapore. Those who are unable to afford a home will stand a higher chance to obtain a HDB flat for rental purpose. There has been a drop of demand on resale HDB flats with just 4,335 transactions in the recent January to March 2013. Resale prices rose at a slower pace of 1.3 per cent compared to usual 2.5 per cent. However, this was more than the 0.6 per cent in the 2012.

Those who are unable to afford a home will stand a higher chance to obtain a flat for rent. There will be a 20 per cent increase of rental HDB flats from 50,000 to 60,000 that will be supplied. This is one of the solutions implemented by the government to help the people affected by the circumstances. However, the government has no plans to increase the public rental structure.

Prices of new HDB flats in Singapore will be close to 30 per cent cheaper. This will in return less expensive to own a home especially for the first-time home buyers.

There was an increase of 12.5 per cent since 2011 in the resale market while prices of new HDB flats launched are still stable. There would be few good changes to be implemented such that the government is not just aiming on price stabilisation in Singapore but combating on ways to improve housing option that could be designed in the near years. Analysts are predicting major policy changes such as shorter flat lenses and different classes of new flats.

Newly born policy such as availability of new HDB two-room flats for sale can be considered by singles of at least 35 years old. The first batch of these two-room flats will be in Sengkang and will be available for sale in July. Though there are rumours that the location of these HDB flats would fail to entice large number of response as the residential area is further from the bustling central town.

The current scheme allows subsidized HDB for rent to young families waiting for new flats as well as young, childless couples.

Lower income families who are deciding to buy a second new flat will get double the chance to attain the flat; 30 per cent for two-room and three room HDB flats in non-mature estates; an increase from 15 percent.

Despite the positive news, the pessimistic view of Singaporeans towards the abovementioned points; if the government might fail to meet its promises due to the increase of construction costs and curbs on foreign workers involved in structuring the HDB flats. Many are also in awe that the prices set might be too low and result to more competition for houses.

The Singapore government is trying to help the population by increasing the supply of HDB flats for rent, for sale and resale to decrease competitions.