Property prices in Singapore, rant

Been to a few new launch condos recently. These are OCR condos, mass market ones, usually around 500 units.

3BR are around 1000sqft, priced from S$2300psf, and 4BR starts from 1180sqft, priced from $2200psf

This means, a 3BR will set you back at least S$2.3M

Assume you can take maximum loan, you will still need to down 25% at least, plus 3% BSD, plus legal fees etc. That's around S$650k!

And people are complaining how expensive HDBs are. With $650k, you can literally pay off the HDB, unless you are gunning for the large units or popular ones that could go above $1M

I really wonder how long will the govt continue to let the private property prices go up.

As a reference, an OCR new condo costs around $1800psf in 2020. So in less than 5 years, it jumped 27%. This is around 5% p.a., which some may say, that's inflation! Well, it could be possible. As long as it goes along with inflation, I guess that is ok?

but what would the the limit? Young people will find it harder to get private property. This puts a damper on aspirations and motivations.

Staying in HDB is of course perfectly fine, but the point of private condo is more about that jump in capital and asset value to help one hit financial goals/freedom. Once you have an HDB, there are strict rules and also ABSD should you want to venture into investments in private properties. I guess it's a good thing to prevent clueless/reckless people from going kaput.

Comments

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