Condo demand in Singapore is consistently growing due to the scarcity of land. With the rapid growth of the country and strict land usage regulations, the real estate market has become highly competitive, resulting in constantly rising property prices. As a result, investing in real estate, particularly in condos, has become a highly attractive opportunity for significant capital appreciation. Condos provide a lucrative investment option for those looking to profit from Singapore’s thriving real estate market.
When contemplating a condo investment, it is crucial to also evaluate the potential rental yield. This refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can differ significantly based on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer better rental yields. It is essential to conduct thorough market research and seek guidance from real estate agents to gain valuable insights into the rental potential of a particular condo. Singapore Projects can also provide useful information about rental yields in specific areas.
The latest round of the Home Improvement Programme (HIP) will benefit over 29,000 HDB flats, according to a press release from the Housing and Development Board (HDB) on Feb 16. A total of $407 million will be allocated for the upgrading works, which will take place in various estates including Bedok, Bukit Batok, Bukit Merah, Bukit Panjang, Chua Chu Kang, Hougang, Jurong West, Pasir Ris, Queenstown, Sengkang, Tampines, Toa Payoh, and Woodlands.
The HIP was introduced in 2007 to assist flat owners in addressing common maintenance issues that arise due to wear and tear in older flats. Since then, a total of 494,000 flats – nine out of every ten eligible flats – have been selected for the programme. Close to 381,000 flats have already undergone upgrades, according to Minister for National Development Desmond Lee.
Under the HIP, selected flats will undergo essential improvements such as repairing spalling concrete and ceiling leakages due to wear and tear. These essential improvements are fully funded by the government for Singapore citizen households. Additionally, flat owners can opt for optional improvements like upgrades to existing bathrooms and toilets, a new entrance door and grille gate, and a new refuse chute hopper. The cost of these optional improvements is subsidised by the government, with Singapore citizen households paying as low as 5%.
The Enhancement for Active Seniors (Ease) programme has also been included as part of the HIP since 2012. Under this programme, flat owners can choose to install senior-friendly fittings such as grab bars, ramps, and slip-resistant treatment for toilet and bathroom tiles. Up to 95% of the costs are covered by the government for Singapore citizen households.
In total, the government has allocated approximately $4 billion to the HIP and around $150 million to the Ease programme, as of March 31, 2014, according to HDB. With the latest round of the HIP, the government continues to support the upgrading and improvement of HDB flats for the comfort and safety of its residents.