Unbelievable: Here Is World’s Smallest But Richest Nation Where 90% Of Citizens Own Homes, Cars!

By Frank Kamuntu

A country half the size of London is one of the richest in the world, and almost everyone owns their home. Singapore has one of the highest per-capita GDPs in the world in terms of purchasing power parity (PPP), at £80,077.

Internationally, it comes behind Luxembourg, Switzerland, and Ireland. The city-state is the wealthiest country in Asia, owing its wealth not to oil but rather to a low level of government corruption and a business-friendly economy. Investors from around the world come to Singapore to do business, bringing their money with them.

This wealth means that 90% of people own their homes, according to the country’s National Statistics Department. Its homeownership rate is one of the highest in the world, which El Economista called “an exceptional result” when considering the current market situation in Western countries. It is explained by state intervention – increased taxation on those buying second homes and increased prices for foreign buyers.

When supply becomes tight, the state does not leave the market to regulate itself. Instead, it responds with more public housing and fiscal adjustments. Eighty percent of households live in public buildings promoted by the Housing Development Board (HDB).

This model produces a “highly stable residential market” where homeowners are sustained by government subsidies, tax pressure on large property owners, high prices for non-residents, and penalties for having vacant property.

For example, the Proximity Housing Grant (PHG) encourages intergenerational care and closeness by offering up to £17,320 for the purchase of a home near immediate family.

There are also grants worth up to almost £103,950 available for first-time families, depending on income and marital status, through the CPF Enhanced Housing Grant (EHG).

The fiscal pressure on large owners also contributes to stability – prioritising self-occupation over investment portfolios means higher taxes on owners of second, third, and other homes.

Citizens can pay up to 20% more for their second home and 30% for their third or subsequent homes. Permanent residents pay between 30% and 35% for their second home, foreigners pay 60% tax on any purchase, and entities 65%.