The turmoil in Singapore: a fluctuating real estate

The international real estate market is constantly subjected to stimuli, mutations of all kinds, shocks. Never as in recent years, especially since the start of the pandemic emergency, has it suffered a massive collapse. Whether it is a collapse in prices, or a collapse of interest in the market itself by potential investors, it does not matter. The word '' collapse '' has characterized the international brick, and continues to do so, in all its forms.

Office, residential, commercial market, without forgetting the luxury sector, usually alien to any dramatic impact or fashions. The following news shouldn't come as a surprise. Except for a not insignificant detail. Which we will find out shortly. From the title you will have understood that the protagonist of our column is the Singapore real estate market. But in detail, that relating to the segment of public housing. So, if you are curious to know more and to understand why there is such a stir ... we can begin!

Let's start with a fact. Singapore's social housing plays a crucial role. In fact, in this Asian state, over 80 percent of the resident population lives in public housing. And despite being social housing, it seems that this sector is the flagship of the national economy. Indeed, the growth in social housing has been surprising in recent years. Thanks to the rising cost of living in Singapore and continuous local innovations. Which obviously led to an increase in the value (and therefore the price) of the properties already on the market.

We also recall another very important element. The presence of many open job positions, covering every type of sector and level. From hi-tech to the healthcare sector. In short, simply put, Singapore has exploded! But then, in such a propitious context, in such a dramatic period that the entire globe is experiencing, why do the experts say they are worried?

Since the beginning of the year, the demand for social housing has increased dramatically, leading to the collapse of real estate sales in the '' free '' market. More and more people in Singapore consider themselves '' poor '', given the very high standards for which this reality is known.
The feared risk is that the concept of non-popular '' home '' may gradually disappear. Reason why, even the prices of houses belonging to social housing begin to rise. A sort of domino effect that worries a lot. Reason why, the government has decided to implement a plan regularized by the introduction of a fund to encourage the purchase of public housing. The fund in question is the Central Provident Fund.

Through this economic tool, it is possible to become the owners of the public property at 90%. In addition, the owners in question will be able to resell their homes after only 5 years and with the complete purchase of the property. By doing so, the rate of profit deriving from social housing will be transferred to the public one, generating induced and economic recirculation that should not be underestimated.
An interesting measure, which we hope will lead to the desired results. While waiting to receive new information, we invite you to always stay tuned to our Portal!

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