Singapore, while having one of the highest rates of home ownership, has the most expensive real estates, which is surprising. On what basis do we make a comparison between the countries? Should we compare the prices based on one type of building or the area covered by the building? All of these questions need addressing as housing is an important sector in a government to develop their economy and control the use of land, grants ownership, impose taxes on the property and often builds them.
Singapore roughly has 75% of public housing, and the Housing Development Board manages its provision (HDB, which is a government agency. Public housing is reserved only for the Singaporeans. The remaining 25% is private housing which can be purchased by anyone except for the landed properties which are largely reserved for Singaporeans. Many internationals real estate comparisons do not include public housing for its records, so if only private housing sales are to be calculated for the average in Singapore, it might not be very accurate in the total stock calculation. In a report, it was found out that after including HDB the median resale price across all property segments in 2018 was 563,000 Singapore dollars. The HDB and executive condominiums sales accounted for 63 percent of all resale transactions in 2018. Meanwhile, the median private non-landed rescale price was 1.3 million Singaporean dollars. The report concluded that Singapore is, in fact, one of the most expensive housing markets in the world.
On comparing the Singapore market on an international level, the record of landed property or the square foot cost provides significant results. Whereas, comparison based on housing that the non Singaporeans can purchase provides different results overall.
Today Singapore stands on second spot after Hongkong with the housing cost up to 874,372 us dollars in the international market. The main reason for Singapore housing to be so costly is being the financial hub. It is one of the most developed business markets in the world with the best quality infrastructure, as well as economic and political stability. Singapore stays on the top list for the multinational companies to establish their headquarters. These factors are responsible for the increase in the cost of properties in Singapore.
However, it has been noted that the average price growth in Singapore was slower at 1.1 percent, whereas the price growth in Hong Kong was recorded to be 5.5 percent and 11.2 percent in Shanghai which is the third city with the most expensive housing rates. Other cities in the list of the top most expensive cities in Asia are Shenzhen, Beijing, and Mumbai.
With more industries building their foundations in Asia, it is sensible to say that the estate business is going to flourish in Singapore and other Asian countries. The government is finding out the best ways to put forth their schemes in the market with the best plans in real estates.