Eighty percent of Singaporeans own HDBs, or public housing designed, built and allocated by the government to low- and middle-income residents in Singapore, where the purchaser has the right to use the property for 99 years, but the property rights belong to the government, which can be interpreted as our shared ownership housing and guaranteed rental housing.
The other part of the wealthy people or foreigners can choose the developer-built commercial housing, commonly known as private housing, after the purchase can have the land lease, whether 99 years or 999 years or permanent land lease, belong to individual property rights.
The price of a private house in the same location is often three times or more expensive than a HDB flat, with additional taxes and fees.
Of course, even in HDB flats, there are all kinds of facilities such as children's recreation areas, sports fields and other common facilities, public greenery, various social service organizations, and an elevated floor at the bottom of the building for residents to gather and play.
The private commercial housing is luxuriously equipped, with swimming pools, clubhouses and lounges as standard. There are many developers of Singaporean origin in Shanghai, and I believe they must have developed their horizons through private housing in Singapore, which is why famous brands like Yanlord were born.
HDB flats in Singapore are certainly cheap, but very strict restrictions are set on buying, selling and renting to prevent speculation by locals, and if you violate the relevant regulations, you will face severe penalties.
First of all, a family eligible to buy a brand new HDB flat must earn less than S$12,000 per month (this figure is subject to annual adjustment), must be a Singapore citizen or Singapore permanent resident, and must apply for HDB flats as a family unit, and singles must be of a certain age to apply.
This policy encourages nationals to get married on the one hand, and prevents a large number of single people from consuming government housing resources on the other. Of course, a family can only own one HDB flat and if they want to buy another property, the old HDB flat must be withdrawn and cannot be occupied more than once.
Secondly, the down payment is at least 10%, which can be deducted by CPF as a lump sum, and the remaining amount can be deducted by CPF on a monthly basis, and the government will also subsidize a lump sum for each family to purchase a house.
Another point is that HDB flats that are not purchased for self-occupation will face high fines.
Within a certain period of time, the whole house cannot be rented out, and the owner must live in the house, but it is possible to share other single rooms, but the number of people sharing the room cannot exceed 2 people per room.
If the HDB flat is sold within a certain number of years, a very high government tax will be charged.
In this way, there is a strict limit on the number of units a family can own, and it is illegal to be a second landlord in a HDB flat, so it is almost impossible for Singaporeans to speculate in HDB flats.
Whether it is a HDB flat or a private house, it requires a sum of money to purchase. For low income families who really do not have savings, Singapore can provide rental subsidies for HDB flats.
Families with a monthly income below a certain value can rent a HDB flat of the corresponding household type and pay only 10% of the market price, with the remaining 90% subsidized by the government.
For example, in 2021, a family earning less than S$800 can rent a one-bedroom apartment in the suburbs for a minimum of S$30/month (RMB 140).
In general, anyone who has residency status and a regular job in Singapore can basically have a home.
Whether it is a HDB or private home, the basic quality management of the package is fine, but to own a non-HDB or luxury home or more than two properties, a family is neither entitled to preferential government benefits nor has to buy from the market at a much higher than average price, a separate residential market.
To paraphrase a common saying, if you don't have money, what's the point of going to the private housing market? However, if you don't have money, you can still live in a dignified HDB or low-cost housing.
With the influx of quality immigrants into Singapore, the non-HUD private housing market here is also thriving and the prices of homes are also increasing.
It has never been heard that the presence of HDB flats has trapped the commercial housing market, nor have I heard that the presence of taxes has made consumers of commercial housing flock to HDB flats. So, on the whole, living in Singapore is a place where the well is very clear.
