Singapore wants to make public housing more affordable ahead of elections. That’s creating another headache for developers already under pressure from plunging sales and home prices.
Prime Minister Lee Hsien Loong said Sunday he’s boosting grants for public housing, where more than 80 percent of Singaporeans live. He will also raise the household monthly income ceiling to qualify for new units by S$2,000 to S$12,000 ($8,519) and to S$14,000 for more upscale executive condominiums to ensure homes are within reach for more of its citizens.
Developers are already grappling with falling prices and lower sales after the government began introducing residential curbs in 2009 as low interest rates and demand from foreign buyers raised concerns that the property market was overheating. More generous public-housing rules are likely to hurt demand from middle-income families who otherwise would have had to buy on commercial terms.
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