How can I own a home if new flat prices are rising faster than incomes?
Posted on 08 Sep 2015 |
New flat prices have not risen at a higher rate than incomes in the last ten years. The delinking of Build-To-Order (BTO) flat prices from the resale market and generous housing grants have ensured that Singaporeans can own a home.
Let’s take a look at the figures:
- In 2014, the median household income of Singaporeans had increased by 72% over the past decade.
- In comparison, 4-room BTO flat prices in non-mature estates had increased by 62%, without factoring in housing grants.
- But with grants, prices would have increased by 45%, much less than the increase in incomes.
- Also, in 2014, first-timer families who bought new flats used on average 22% of their monthly household income to pay their monthly instalments; about 80% of them serviced their mortgage loan without paying any cash.
HDB is fully committed to providing quality flats and a variety of flat types at affordable prices, to cater to the housing needs of Singaporeans.
As buying a home is a long-term commitment, it should not be taken lightly and flat buyers need to choose a flat that best meets their needs and budget. This is a universally accepted principle.