The Singapore property market is one of the most complicated markets in the world. Its economy has been stable for years that is why it drives many investors and businesses. These businesses come from different industries and countries. They are all trying to get a chunk of Singapore’s successful economy. With these investors and businesses, many job opportunities are opened. That is why many individuals try to get a job in Singapore. This number of individuals equates to the number of demands for housing in Singapore. They all want to buy property in Singapore to settle in.
However, Singapore is known to have a relatively small land area. Thus, it has a limited supply of land for housing. Through basic economics, this factor makes the price of properties more costly than others. That is why it may be harder for individuals to own a house in Singapore.
However, it is reported that almost 90% of the residents own a house in 2019. There are a lot of factors that contributed to this. They were able to buy property in Singapore due to the many efforts of the government and other institutions. Many efforts and programs have made it possible for many Singaporeans to buy property in Singapore despite the high prices. There is also an emergence of affordable housing types like condos. One of the most affordable ones is the Penrose Condo offers great deals especially for those on a tight budget. Furthermore, let us talk about the 3 reasons why most Singaporeans own their homes.
#1 High government subsidies
One of the main reasons why Singaporeans were able to buy property in Singapore is because of its supportive government. Their government offered a helping hand so that residents can own a house they can call their own. They acknowledge that housing units in Singapore are relatively expensive. Thus, this drove them to formulate many programs and policies to ease this problem.
One of their policies is that only residents can participate in the housing program. They offer housing subsidies to families that need it to be able to buy property in Singapore. This subsidy is dependent on the amount that one earns. The lower the monthly income is, the higher subsidy they can get from the government.
For example, if a family earns less than $1,500 monthly, they are qualified for an $80,000 housing subsidy. This kind of project has provided over 80% of Singaporeans with their homes. It has also provided homes for different ethnicities as long as they are residents of Singapore. Although, there is only limited supply when it comes to other ethnicities as they prioritize Singaporeans.
#2 Mandatory savings program
Another program that has helped a lot of residents to buy property in Singapore is the mandatory savings program. This is to require them to keep money intended for a house. It does not matter whether it is an apartment or a condominium at Penrose Condo. The purpose is to be able to afford a roof on their heads. This program is headed by the Central Provident Fund.
It says that working residents who are younger than 55 years old are required to put in twenty percent of their salary into their CPF accounts. While the employers of these individuals are required to contribute 17 more percent. Although, this contribution is divided into three different sectors, housing, healthcare, and retirement. It also gains interest up to five percent as time goes by.
If a resident is self-employed they can choose not to participate in the program. They are free to do with their hard-earned money. However, this kind of program has been proven to be effective as many residents were able to secure their houses or condominiums at Penrose Condo. This is also helpful for when retirement comes.
#3 Accessible loans
There are also many accessible loans for residents. These institutions acknowledge the fact that it is very costly to even afford even an apartment or a condominium at Penrose Condo. Banks have made it easier for residents to apply and get their loans approved. This has made a great impact on the number of residents that we’re able to secure a house.
There are many factors that have helped residents to secure a house. Whether it is an apartment or a condo at Penrose Condo, programs and policies have made it easier and more possible. Know more about these things when you visit us at SRX Property.