Home News Featured News Sky-high prices, delays, supply chain disruptions increase headaches for first-time homeowners

Sky-high prices, delays, supply chain disruptions increase headaches for first-time homeowners

Some Sengkang units are going for as much as $680,000. It may reach a record high this month.

- Advertisement -

Singapore — Owning one’s own place is a challenged in land-scarce Singapore in the best of times, but the pandemic has made things harder for those who are looking to purchase their own place.

There has been a delay in Built-To-Order (BTO) flats because of a labour shortage since the number of migrant workers was lessened due to the pandemic.

And even for some who already have BTO flats in the pipeline, the usual wait of three to four years has extended to six years, according to a Sept 26 report in the South China Morning Post.

The report adds that the usual Plan B for acquiring property, which is to look to the HDB resale market, is also proving to be challenging, as resale flats have also escalated in price. In the past 14 months, prices have increased steadily, with the HDB resale price index “just 0.1 per cent off the record high of 149.4 points set in April 201.”

- Advertisement 1-

However, the problems due to a delay in housing may have repercussions down the road.

The report quotes National University of Singapore sociologist Dr Tan Ern Ser as saying, “Housing issues could also affect fertility rates, increase the rate of population ageing, and lead to a shrinking population.”

It may also result in a disgruntled segment of the population.

“If a significant number of people feel left out, excluded, unfairly treated, or lose hope in the future, it would erode the social compact and trust between the government and an important segment of society,” he added.

What has also caused a delay in finishing BTO projects is that a sizeable portion of migrant workers from India and Bangladesh, who make up the bulk of Singapore’s construction workers, went home last year and have not been able to return.

A number of current BTO projects are delayed by as much as one year, said International Property Advisor chief executive Ku Swee Yong, and this delay has driven the price of resale flats up.

The SCMP report quotes the head of research and consultancy at real estate firm ERA Realty, Mr Nicholas Mak, as saying “With supply chain disruption, some people might not be prepared to face the uncertainty of a longer waiting time, so they turn to resale flats, which pushes up their prices.”

- Advertisement 2-

This year, between January and August, 19,141 resale units have been sold, and almost 40 per cent increase from the same time in 2020.

Prices are up as well, with some prices more than ten per cent higher than in 2020. Some Sengkang units are going for as much as $680,000. It may reach a record high this month, industry experts say,

”The situation is likely to continue until the supply chain disruption is resolved,

The government is trying its best to increase supply but the supply chain is facing headwinds. And as public housing is the most basic type of housing, to reduce demand is impractical because everyone needs a place to live,” said Mr Mak.

/TISG

Read also: Crazy Rich Asians’ mystery estate, owned by Johor’s Crown Prince, in talks of becoming luxury housing development

‘Crazy Rich Asians’ mystery estate, owned by Johor’s Crown Prince, in talks of becoming luxury housing development

- Advertisement 3-

 Follow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

Read More

Alfian Sa’at: Xiaxue-Sylvia interview as appealing as “two women paint each other’s nails with diarrhoea”

Singapore –  Playwright Alfian Sa'at has weighed in on the tawdry tragicomedy starring the co-owners, staff and former staff of Night Owl Cinematics (NOC). On its website, NOC describes itself as "an agency dealing with  YouTube, Facebook and Instagram advertising...

NOC’s Ryan Tan speaks out against Sylvia Chan, says that “many lies were peddled during the interview”

Singapore – In a 10-page statement peppered with screenshots and WhatsApp exchanges, Ryan Tan, co-founder of Night Owl Cinematics (NOC) sought to absolve himself...

Getai artist Wang Lei gets backlash for spot at Singapore Writers Festival, but fans cheer him on

Singapore — Wang Lei may not be everyone’s cup of tea, judging from reactions from some quarters when it was announced that the getai...

Zheng Wanling fainted and menstruated for three weeks from menopause

Singapore — Local actress Zheng Wanling, who rose to stardom in the 80s explained why she did not accept any acting jobs upon returning...

After two years, Chen Hanwei reunites with mother

Singapore -- The pandemic has been highly effective in messing up international travel and because of that, family life, keeping many families split. Veteran actor...
- Advertisement -
Follow us on Social Media

Send in your scoops to news@theindependent.sg