This infographic reveals that the price range you can expect for an average standard, high-rise apartment in Singapore equates quite closely with that of Seoul’s. The exact range estimated rounds up to 122.63-139.35 USD per square foot so we can consider Singapore to be one of the most expensive urbanized cities in Asia. On the contrary, Singapore’s housing costs appear to be very attractive and affordable to many others like expats and foreigners. This is because the house construction costs of USA and UK are much higher. The infographic reveals the price range to be 311.22 USD per square foot in the UK. So, why does Singapore’s house construction costs appear to be expensive for some but a bargain for many others? Read on to find out.
Why Singapore is More Expensive
It is more expensive to build a house in Singapore compared to most other countries in Asia because of crucial factors that contribute to higher building costs. Experts like the senior economist, Shane Garrett point out that quality, size, site location, complexity and the set project timeframe all cause construction costs to increase. Singapore’s residential towers are detailed with modern designs and sustainable features that allow it to be termed as an urbanised megacity. According to Square Room, the top 5 interior design styles in Singapore are Industrial, Scandinavian, Eclectic, Minimalist and Modern Resort. Another one of the most prominent features of a house in Singapore is that you’ll find it to have included Green Technology. Houses in Singapore are designed so that you can effortlessly install solar energy or other renewable sources of energy.
Why Singapore’s Housing is Affordable for Many
The government of Singapore actually attempts to make housing very affordable for all. At present, one million HDB apartments flourish the Singapore’s coastal core extensively in semi-circular clusters over dozens of urbanised towns. The government offers many different types of housing plans for various consumers. The reason why these deals are attractive for many is that they are priced way below the market price. Although foreigners and expats may be restricted from purchasing clear land directly, they can still construct a new house after tearing down an old one or modify an existing structure after purchase. In this case, purchasing an old, affordable HDB apartment can be a good investment.
Singaporeans have the option to purchase already-built new or old HDB apartments from owners at whatever final price the owner and buyer mutually settle. The government provides several grants and loans to help first-time and second-time buyers. Home owners could also source for bank loans to help them. Alternatively, secondary markets belonging to private developers do exist for the extremely wealthy Singaporeans and foreigners but they can cost two or even three times as it would cost to buy a semi-built or old HDB apartment. Some time ago, HDB 3-bedroom flats in a suburb at Punggol were sold off at a little more than S$300,000 ($217,000) on average. A $75,000 discount was valid at that time for first-time buyers as a part of the government grant. Therefore, it may be wise to look into the government controlled HDB apartments in Singapore for simply residing or re-constructing any house.
The team at Redbrick Mortgage Advisory has more than 60 years of banking experience and is proficient in structuring and sourcing for the best financing terms for both residential and commercial real estate in Singapore, Malaysia, USA, UK, Japan, Thailand and Australia.