Saturday, 11 January 2014

21th Century Problems(Housing)

In the recent, Singapore is facing the problem of housing shortage as well as high housing prices. Due to the limited land supply in Singapore, the demand for public housing has been increasing at a faster rate than the supply of public housing, resulting in sky high prices for public housing. It has been said by some that Singapore is following Hong Kong's footsteps.
The EIP(Ethnic Integration Policy)  limits the number of Chinese, Malay and Indian people living within a neighbourhood and within a HDB block of flats. This policy was made initially with the aim to promote racial cohesiveness in the multi-racial society of Singapore.However, this policy has restricted the type of buyers for the resale flats. It has a part to play in causing the housing prices to increase too.
  • Malays were usually selling at valuation price because they can only sell to fellow Malays
  • However, the Chinese sellers who are freeing up the Chinese quota, are free to set a higher price.
  • Chinese-owned flats (some) were sold at $80,000 above valuation. 

Inez, L. K. L. (2012, April 14). Singapore housing. Retrieved from\

(Inez, 2012)

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