Real Estate News, Reviews and Investment
What are the realities today? Well..
Last night at a very interesting seminar the key note speaker (Mr Lester Chen of Beacon Rock Consultancy) talked about scarcity of land in Singapore, he also talked about reclaiming land from the sea and building dormitory cities in Malaysia…. all very informative, but then my favorite the hard facts- Singapore is aiming to increase its population, so lets stick to round figures and postulate that-
Current population 5 million
Desired population 6.5 million
Household size 3.5 people/unit
Housing Development Board units in pipeline 50,000
Private condos in pipeline 80,000
Therefore to house the extra 1.5 million people we will need an extra 425,000 units but there are only 130,000 in the pipeline leaving a shortfall of 295,000 units!
Now lets enter the realms of developer fantasy and imagine an average unit sells for $400,000 this means an unsatisfied desire for $1,180,000,000,000 now lets take 25% for a developer yield… $29,500,000,000!
Okay thats enough for now… with figures like that, anyone who wasn’t already heading for the classifieds is now
Next week- some solutions! Mostly impractical and some ridiculous so let me know if you have any ideas…