Singapore Launches Pilot Project At Rochor Under Prime Location Public Housing
In November 2021, Singapore launched the very first project under the Prime Location Public Housing model. The new project, with a total of 960 three-room and four-room flats, as well as 40 two-room rental flats, will be built in Rochor next to the Jalan Besar MRT station. Apart from its close vicinity to the MRT station, it is also within walking distance from Stamford Primary School and Berseh Food Centre. To find out more about the Prime Location Public Housing, you may consult your economics tutor Singapore in economics tuition Singapore. Mr Edmund Quek is the best economics tutor Singapore. His economics tuition Singapore centre is conveniently located within five minutes’ walk from the Bishan MRT station. Following the pilot project at Rochor, HDB announced that it would launch at least one project under the Prime Location Housing model every year.
Conditions To Curb The “Lottery Effect”
The selling prices start from S$349,000 after grants for a three-room flat and S$537,000 after grants for a four-room flats. In comparison, the transacted prices of resale flats in the vicinity range from S$490,000 to S$555,000 for a three-room flat and S$630,000 to S$770,000 for a four-room flat. The expected appreciation for the Rochor project is considered very reasonable compared with existing flats in mature estates such as Pinnacle @ Duxton and Dawson in Queenstown and Tiong Bahru respectively. With guidance from your economics tutor Singapore in your economics tuition Singapore class, compare the expected appreciation of Rochor project with that of Pinnacle @ Duxton. Owners of these flats are regularly featured by media for making a fortune of over half a million when they sell their flats after fulfilling the five-year minimum occupancy period.
As part of the effort to curb the “lottery effect”, HDB has set a much longer minimum occupancy period of 10 years for projects under Prime Location Public Housing. Furthermore, as HDB offers higher subsidies for prime location public housing to make these flats affordable for the public, it will claw back the additional subsidy by taking a cut from the resale proceeds. The longer minimum occupancy period, together with additional subsidy clawbacks are expected to effectively accentuate the “lottery effect” when these flats are sold in the resale market. In discussion with your economics tutor Singapore in economics tuition Singapore, explain how these conditions help curb the “lottery effect”. However, the new conditions do not apply to existing public housing in prime locations. Therefore, demand for existing public housing in prime locations is expected to rise.
Other Conditions To Promote Affordability, Accessibility And Inclusivity
The new Prime Location Public Housing model is carefully designed by the Ministry of National Development and the Housing & Development Board after extensive engagement with the public, industry experts and stakeholders to gather their diverse views on the issue. As a result, new conditions have been included to make the prime location public housing affordable, accessible, and inclusive. These conditions include higher government subsidies, citizenship requirement for purchase directly from HDB and in resale market, as well as a prevailing household income ceiling of S$14,000 per month for resale buyers. In addition, buyers must not have an interest in any private properties or have disposed of any private properties in the past 30 months, up from the current six months for resale flats. You may approach your economics tutor Singapore in your economics tuition Singapore class for more details. Mr Edmund Quek, principal economics tutor Singapore of Economics Cafe Learning Centre is renowned for incorporating real world events into his economics tuition Singapore. To find out more about this economics tutor Singapore, you may visit the economics tutor Singapore’s website at www.economicscafe.com.sg.
There is reduced privilege for married children who want to live near their parents. Under the new model, the allocation quota for the Married Child Priority Scheme will be reduced. Besides a longer occupancy period of 10 years, tighter rental conditions will be imposed to strengthen owner-occupation intent. Renting out of the entire flat will not be allowed even after the minimum occupancy period.
Linda Geng
Economics Tuition Singapore @ Economics Cafe
Principal Economics Tutor: Mr. Edmund Quek