60 years ago Singapore lived an alarming housing crisis. Today almost all of its inhabitants have their own home
Singapore is a constrained nation, rich and with one Huge concentration of population, ingredients that a priori invite you to think about a complicated residential market. His most iconic image is in fact that of a ‘skyline’ drawn by huge and brand new skyscraper. However, despite the fact that it has not been oblivious to market reheatingthe city-state presents a curious peculiarity: a overwhelming majority of its population resides in homes promoted by the State and the country has one of the biggest Property rates of the world. His model has fascinates experts for years. A unique country. It is not that the real estate market of Singapore is special, is that it is the nation itself. If it had to be defined with three adjectives, they would be small, concentrated and prosperous. The city-state is barely 720 km2 And he welcomes just over six million people, so that his population density is around 8,200 people/square kilometer. These data make the island nation one of The most concentrated of the planet, behind Macao and Monaco. If we talk about per capita income, an indicator of population wealth, Singapore also sneaks into the top of international rankings. In fact, he heads Asia’s list and stands out on the world map. According to The data which manages the US administration, at least last year there were only two nations that exceed it (both small): Monaco and Liechtenstein. The city-state also stands out for Your concentration of millionaires. Singapore’s paradox. If the country’s economic and demographic data are curious those of its real estate market are no less. Especially because, as he pointed out In March Wei Low In an analysis published in Bloomberg, the city-state presents a “paradox.” Singapore is not cheap for real estate professionals, but at the same time it is surprisingly affordable for its inhabitants, which seem to have no problems when acquiring a house. Does not lead the List of countries With a higher housing property rate, but it is appearing in the upper part of the table, with a percentage much higher than that of Spain. Here the Bank of Spain (BE) Calculate that the percentage of households owned by their main house The European average It was slightly lower, of 69.7%, a percentage that brings together, however realities so disparate such as Romania (96.1%) or Denmark (59.3%). First percentage: 90%. In the case of Singapore the analysts They usually point that the property rate is around 90%. That The reference that is handled from Wei or the one that collects the Trading Economics platform, which Precise that the average property rate in the city-stated between 1980 and 2024 was 89.2%. The last indicator (of 2023) would be 90.8%, a few points below the maximum of 93.1% scored at the beginning of the century. Such a percentage has made often analysts are done a question: How have Singapore managed to reach a rate of ownership of the housing so surprisingly high? Second percentage: 80%. The above is much better understood when knowing Another indicatorequally striking: it is calculated that More than 80% of the population of the country resides in apartments built by the State, which also controls an overwhelming part of the territory. In 2018 Abhas JHA, Urban Development Manager and Risk Management of the World Bank, I calculated that 90% of the land were owned by the administration, almost double that in the 60s. During the same period, between the 7th and the present, the property rate He also shot. Three letters: HDB. To understand these percentages, we must know the recent history of Singapore and especially the origins of one of its fundamental organisms at real estate, HDB, the acronym in English of Housing and Development Board. In the late 50s, when the city-state reached its self -governmentthe Singaporenses authorities met A challenge Capital: its housing park had not grown alongside that the population of Chinese, bad and Indian immigrants, which translated into overcrowding and illegal populations. To solve that pressing “Residential Crisis” In 1960, HDB was created, an organism that was launched with a strong support of the government. In three years he had built 21,000 homes, a couple of years later the figure amounted to 54,000 and after a decade it resulted in the crisis. The result, highlights the organism itself On its websiteIt is that today “about 80% of the population of Singapore resides in HDB homes in 24 cities and three urbanizations.” As a reference, at the beginning of the 1960s only a small part of the Singapurenses (about 9%) resided in houses of public origin. Government graph explaining the sales system to 99 years. One date: 1964. In the residential chronicle of Singapore there is, however, another even more important date, such as remember Bloomberg Agency: 1964. That year the administration decided to offer subsidiary apartments for sale as part of the program ‘Housing access plan for the people’an initiative aimed at medium-low-income families who wish to acquire their own home. Since then the country has continued to polish the system, creating a mechanism that has favors for more than 30 years the mixture of ethnic groups (Chinese, Malays or Indians) to prevent them from forming in the small city “Racial enclaves” and a program that encourages the modernization and reform of the housing park. “Being a home owned citizens a tangible asset and a participation in the construction of the nation. There are more than one million HDB houses, in which 80% of the resident households reside. Of them, nine out of ten are owners of their homes,” stands out The Singapore government. How does the system work? There is an important detail. As remember Administration, The majority From HDB homes are sold with a 99 -year -old lease contract, a formula that, Reason the Government“satisfies the needs of the owners and their children while guaranteeing the rehabilitation of land and building construction.” The formula is not exclusive to the city. In Hong Kong there are also … Read more