SINGAPORE, Aug 31 — Hundreds of public housing apartments in Singapore, one of the world’s most expensive cities, are being sold for over S$1 million as Covid-related construction delays create a shortage of new units.
Many units, known as Housing and Development Board flats, are conveniently located near train stations and malls, and cater to various socio-economic groups. For decades, Singaporeans have used their HDB flats for extra cash by renting them out or reselling at a profit. Unlike HDB flats, private condos in Singapore typically have security guards and facilities including swimming pools and gyms.
The proportion of monthly income used for mortgage payments has for three years remained at about 23 per cent on average for public flat buyers with government loans, the government said late last year.Singapore’s construction sector, heavily reliant on foreign labour, has experienced major disruptions amid the Covid-19 pandemic, with tight supplies of materials also leading to delays.
The Ministry of National Development said last month the government plans to ramp up supply of new BTO flats to meet demand.