Hike in Property Prices

There is huge difference in different home property prices. The prices of luxury houses in Singapore have been rising rapidly. Last year, Singapore had reached on third position in luxury homes pricing across the world. In 2009 the hike had reached almost 17 percent. During the same year Singapore was almost on fifth position across the world. According to the Wealth Report 2011 published by Knight Frank, Singapore prime property prices rose up by 18 percent in 2010. Same report explains how the food price inflation happened in the year 2010. It reached almost 25 percent. The report of Urban Redevelopment Authority Singapore states that in year 2010 private houses as well as luxury homes prices rose almost 17.6 percent. The rental prices for the housing properties also increased in the same duration by approximately 18%.

Housing and Development Board (HDB) takes the responsibility of public housing in Singapore. This department works developing cost effective quality homes for all the citizens as well as redeveloping the present townships. It also works for slums resettling. It tries to provide low cost flats for the people staying in slums. Another important objective of HDB is to help the government in restricting the rising property prices by providing the required number of housing units. Urban redevelopment authority (URA) on the other hand plans the usage of the total available land. Singapore has only approximately 700 square Kilometers of land including the water bodies. This puts severe restrictions on the land usage. URA plans the land usage such that the available land is used in the most optimum manner.