The reasons for the squeeze are simple. Construction was delayed during the pandemic, more people are working from home, and there is unprecedented interest in Singapore as a place to live, work and invest as geopolitical tensions between the United States and China increase.
Like in most other places, inflation is also high, at 4.7%. It’s a pointy problem however for a country that traditionally has managed housing for the masses well.
Politicians are mindful of elections due to be held by 2025. In June, Prime Minister Lee Hsien Loong’s government said it would redevelop the city’s only horse racecourse for housing, including public homes.
It notes some 40,000 public and private housing units are due to be completed this year, the highest level in five years. Singapore also hiked taxes on private second-home purchases.