The Straight Times had reported that in spite of the fact that single people are at this time permitted to purchase two-room flats direct from the Housing and Development Board, it is not likely that the forthcoming launch of any such housing projects in July might be overbooked.
The PropNex Realty CEO, Mohamad Ismail had said that the income ceiling of 5000 Singapore dollars for solitary purchasers to qualify to buy two room flats makes them entitled for a mortgage loan of 350,000 Singapore dollars, also. He went on to add that with a voluminous loan as that; single buyers might be capable of affording a resale flat of three rooms in the majority of the region. Similar sentiments have been voiced by many singles, he observed. A 37 year old man Desmond Goh who is in customer service said that as his parents also want to stay with him at the time when they become older, a two-room flat would not suit his needs. He added that he would rather search for a unit consisting of three rooms.
One other reason which is dispiriting the sale of flats to singles is their location.Stacey Cheo who is 34 year old and works in a non-profit establishment said that families should prefer to live in housing estates similar to Pasir Ris which has a beach as well as a park for children to play. It is true that singles are the people who would want to get to the city more frequently, she added.Nicholas Mak who is the Research Head of SLP International has predicted that launch in the month of July shall also incorporate abundant provision of two room flats meant for singles. He added that it might however, very well be mixed along with units of some other types.
Mak also added that there are two sets of buyers of the 2 room flats, the singles, as well as the families with low income. When these flats reach the resale market, they might create a type of ghetto in case they are purchased by low income families in a similar block.
Since two room dwellings are less popular than three room dwellings, the price on this type of property often decreases, especially rental price in central areas. That is why if you are planning to invest money in real estate and want it to be profitable, you should consider at least 3 rooms. We hope this article will help you with your investment plan. Good luck!