Middle-income earners put off by high property prices

I REFER to reports that the prices of private homes are getting out of most buyers' reach.

Prices of private homes are persistently high because of the following reasons:

• Singapore is land-scarce. The price of land slated for private development is usually pushed up by developers' bids.
• Singapore's rapid economic development has led to a rise in the demand for land. Recent factors include the two integrated resorts and the influx of immigrants.
• Efforts to make Singapore a global hub for business and tourism also contribute to the inflow of people.
• The buoyant property market in recent years has also accelerated the demand for private and public housing.

The statistics speak for themselves: In 1998, the average price of a home in the prime districts of 9 to 11 was $847,744.

 

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In 2007, it had more than tripled to $2.9 million.

This year, although prices have declined slightly, the average price stands at about $2.2 million.

While property experts may have theories on why prices are so high, these mean nothing to middle-income earners, who feel that their salaries are not growing in tandem with the rise in property prices.