The Truth Behind Expensive Houses
Are you currently planning to build your own home? Or thinking about living in an HBD flat in Singapore near your workplace? Starting to find the answers to these questions will stir up your decisions to prevent unwanted extra costs.
Singapore properties had begun increasing their prices due to higher demands, low-interest rates, and lack of supply. According to a Singaporean real estate agency head, house construction may increase up to 3% in 2022. Economic factors and other variables affecting this trend attract challenges for custom home builders like the PCE Build and other contractors related to house plans and sustainable architecture.
Thus, let’s discuss further the main reasons why houses in Singapore are expensive
Lower Interest Rates
Buying a house in Singapore is a huge accomplishment especially when you have closed the best deals from insurance companies, banks, and property resale value. Singapore is known for expensive properties and landed homeowners can avail of home loans and pay their monthly amortization afterwards. This is a good option when the budget can afford to make a downpayment.
Aside from applying for loans, you can find lower interest rates from other sellers like real estate agents. However, it may sound to be a good deal but it is only feasible for a shorter period and in due time, prices may rise up again which will affect the budget negatively in the long run
Building Costs
To build a house or get a landed property rather than acquiring a sole-use condominium requires more work in the Singapore housing market. This is the reason why Singaporeans choose to have their own property but the effect of inflation rates add up to the overall cost. From the new house designs to the winning contractor, additional costs come along the way even if you’re only rebuilding a house.
Due to the pandemic, additional taxes are now being raised to 35% based on new standards in buying a property in Singapore. Another reason why building costs spiked is that there have been delays in the construction and most workers went home to their respective provinces or countries.
Demographic Change
The rise of the new generation comes with the inevitable increase in population and demand. There could be a huge shift in the average life expectancy, family structure, birth rates, and average age in the country plus the influence of foreign investors that keep Singapore progressing. Thus, it will result in millennial pricing which makes house building expensive.
Future expansions of the neighbourhood can also affect the price of the properties because of an expected convenience. More buyers may come to look for prospect areas due to this development.
Home Sweet Pocket
The prices for houses will depend on the list of factors. But as the costs for paying engineers and architects for blueprints and building maintenance with PCE Build skyrockets, the scale might tip a bit for a change. Therefore, it is viable to take the right action by reaching out to the services of PCE Build.
References:
https://jimmy-sum.com/why-are-properties-in-singapore-so-expensive/
https://daryllum.com/factors-that-determine-the-price-of-a-landed-property-in-singapore/
