Singaporean real estate is officially up the spout.
JRE previously mentioned an apartment complex in Miami Beach with 21 apartments for sale out of 225. That seemed pretty impressive at the time.
But Singapore, as always, has gone one better: the Rivergate condos, just down the road from me, have 545 apartments in the complex. Of those, 145 are for sale, and 380 (70% of the complex!) are available for rent. (The most annoying bit: I could rent an apartment in there for 20% less than what I’m paying right now.)
The scarily soft market hasn’t stopped the Singaporean government from launching the most expensive public housing ever. You thought public housing was supposed to be subsidised, supposed to meet the needs of low-income earners? Try this on for size: a $722,000 public-housing flat from the Housing Development Board.
Now, the interesting thing: HDB flats are limited to families earning less than $8,000 per month. With 20% down and a 4% interest rate, the mortgage on this place is going to cost about $2750 per month – or 34% of income for even the highest-earning families, easily enough to push them over the mortgage stress threshold.
Have the HDB just launched apartments that nobody will be able to buy?