Demand for Apartments Set to Rise with the New Singapore Government Scheme
Prime Minister Lee Hsien Loong announced a new initiative for the over 62’s in Singapore, to unlock equity from their property which property experts believe will increase demand for three-room apartments.
Property professionals commented that the new initiative will help older Singaporeans liquidise a proportion of their assets, and is expected to be a popular alternative to the reverse mortgage scheme, which has received very little interest. Prime Minister Lee Hsien Loong announced the new scheme during his National Day Rally speech, stating that the plans were specifically designed for the over 62’s who own two or three bedroom apartments, and who have only made use of the government's housing subsidy once.
Although the Housing and Development Board (HDB) will reduce the lease of the apartment to 30 years, the owners will receive an initial lump sum to the value of the lease and monthly payments thereafter, without having to move from their home for up to 30 years. This will help many retired owners derive income from their most valuable assets, and will also allow them to sublet rooms providing a further source of income from their property investment.
Mohamed Ismail, CEO of PropNex, said: ‘This scheme really helps people to unlock and monetise their assets. A lot of Singaporeans are asset rich and some of them may have challenges as far as their cash situation is concerned. And currently, there are not many solutions available.’
Property watchers said the new scheme could potentially boost demand for three-room apartments, which are relatively scarce in the market. Mohamed Ismail, CEO of PropNex, said "Three-room flats provide a very basic, essential need. And with these things in place, I do think three-rooms will be in better demand," said Mr Mohamed Ismail.
Obelisk International recently reported Mervin Chow from OSK Investment Bank saying ‘For many years, Singapore has had a high volume business travel inflow’ which makes Singapore, in terms of real estate investment, a very attractive entity especially as rental prices have been compared to the high values of Dubai.
For more information on property investment opportunities and to findout about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670 or email info@obeliskinternational.com
Or visit our website: http://www.obeliskinternational.com/
To see the original article, please click here
Property professionals commented that the new initiative will help older Singaporeans liquidise a proportion of their assets, and is expected to be a popular alternative to the reverse mortgage scheme, which has received very little interest. Prime Minister Lee Hsien Loong announced the new scheme during his National Day Rally speech, stating that the plans were specifically designed for the over 62’s who own two or three bedroom apartments, and who have only made use of the government's housing subsidy once.
Although the Housing and Development Board (HDB) will reduce the lease of the apartment to 30 years, the owners will receive an initial lump sum to the value of the lease and monthly payments thereafter, without having to move from their home for up to 30 years. This will help many retired owners derive income from their most valuable assets, and will also allow them to sublet rooms providing a further source of income from their property investment.
Mohamed Ismail, CEO of PropNex, said: ‘This scheme really helps people to unlock and monetise their assets. A lot of Singaporeans are asset rich and some of them may have challenges as far as their cash situation is concerned. And currently, there are not many solutions available.’
Property watchers said the new scheme could potentially boost demand for three-room apartments, which are relatively scarce in the market. Mohamed Ismail, CEO of PropNex, said "Three-room flats provide a very basic, essential need. And with these things in place, I do think three-rooms will be in better demand," said Mr Mohamed Ismail.
Obelisk International recently reported Mervin Chow from OSK Investment Bank saying ‘For many years, Singapore has had a high volume business travel inflow’ which makes Singapore, in terms of real estate investment, a very attractive entity especially as rental prices have been compared to the high values of Dubai.
For more information on property investment opportunities and to findout about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670 or email info@obeliskinternational.com
Or visit our website: http://www.obeliskinternational.com/
To see the original article, please click here
posted by Chris at 3:30 pm
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