Would prices of affordable homes rise? This question has been asked a few times. Briefly, the answer is Yes. Not so much of that attractiveness of such affordable homes but also because of the future demand and supply of similar properties and the cost of building such similar homes which would have also risen. Whether it’s the cost of land, the salaries paid or even the cost of materials etc, it would have gone higher and this would thus meant future similar homes will have to be priced higher and the current price we paid for affordable homes would rise in tandem.
Note though that if land prices kept going down, people get paid lower salaries and the cost of building materials kept going down, then of course in future, the property price would keep dropping too. Objectively and looking at all the advanced property markets in the world today? Unlikely to happen. As for an actual comparison of prices then and now for affordable homes, this is the market where majority of all the affordable homes are provided for by the government.
Article in theedgesingapore.com There are a record number of million-dollar price tags for Singapore’s public housing. This seems to be happening in property markets from Hong Kong to Toronto. There were twenty three resold government-subsidized flats which were transacted for at least S$1 million in February according to data from real estate portal SRX Property. looking at 2021, thirty-six of such transactions have happened thus far. This is 350% increase versus the same period a year ago.
There are a lot more details, read it in Article in theedgesingapore.com
Let’s be objective here.
I have been to my close friend’s HDB home in Singapore and stayed there on many occasions. The environment around the development is clean, pleasant, bright and airy. Without them telling me that this is public housing, you would not have guessed that it is public housing. What this tells us is that when the development is well planned, then the property would continue to be in demand and with every passing year, the prices would slowly inch upwards.
This is why IF the affordable homes built here in Malaysia have the same traits (choose carefully because NOT everything is equal just because the price is similar), then the prices for these affordable homes would also be up and it would not stay the same as when you bought it 5 years ago. Hopefully now we stay focused on the reasons to buy and do due diligence versus having the thought that affordable home prices will stay the same 5 years or more down the road. Happy viewing and deciding.
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