Ridiculous HDB Prices

last SG · 2010-05-31T19:17:39+00:00

Wa, I read reports say resale prices will fall soon. They must be joking right? Don't scare me.

ditzy SG

if you cannot loan, rent lah, afterall, singapore peoples work long hours, house is just for sleeping and cook maggie mee, so why need to buy. In some fast pace city, people are renting and living in cages or tubes just to sleep, wait up, share a common toilet and go to work till around midnight.

On the contrary, taking a loan of $130,000, to pay for a 230,000 flat, in 10 years time, the flat would had gone up to $400,000++, sell it off, pay off all the loan, and you still get perhap a $100,000 profit, rent a room and live happily everafter, $100,000 leh, some people work until die also dun have...so, invest now!

Your logic is sound, but only on paper.

angel7030 SG

Your logic is sound, but only on paper.

every thing start from a piece of paper. shooooo...the cat away

βέτά SG

Only stupid people think that prices will hold, the rental prices will remain fix for 20-30 years into the future.

charlize SG

Singapore practices a brand of economics that is not taught in schools.

Property prices can never fall.

Ever.

charlize SG

http://www.mrbrown.com/blog/2010/09/the-truth-about-home-ownership-in-singapore.html#comments

Arapahoe SG

every thing start from a piece of paper. shooooo...the cat away

look whose talking.....!!!

Why don't you read more....

Macho Man SG

yeah every 5 yr 1 recession....and on top of the 30 yrs loan you have to consider the following....

1) retirement fund

2) medical and life insurance

3) if you have kids considered the kids' education.

I sometime wonder if Singaporean asked enough questions?

1) Is my income going to continue to growth?

2) am i going to stay employed?

3) what happen there is an economics downturn when i need to sell my flat?

This is our destiny. We are going to become high cost high living Tokyo. It is fate. If still want to complain, why don't you go to Geylang to release tension?

charlize SG

So will prices hold or decrease after all the recent measures?

Or will the continued importing of more people into the country drive HDB prices straight up to 1 million dollars?

How to reconcile "cheaper better faster" to 1 million dollar HDB flats?

How?

charlize SG

http://theonlinecitizen.com/2010/09/hdb-policy-on-singles-singaporean-vs-permanent-resident/

Why?

βέτά SG

http://theonlinecitizen.com/2010/09/hdb-flats-sporeans-come-first/

So sad.

One Singaporean trying to buy a HDB flat to stay in with his mum but is unable to.

Haiz.

My bad.

The price of 3 room HDB (2 bedroom) is now $250,000 on average.

If you take 80% of loan which is $200,000, with an interest rate of 3%, your yearly interest charges would be $6,000.

If he pays $500 a month for a year, should be able to cover the interest charges but the loan will never be repaid ever.

charlize SG

The current internet chatter is now on the issue of single Singaporeans not being able to buy a resale flat while single PRs under the age of 35 can with their siblings.

Looks like the authorities may need to look into this HDB policy.

More changes on the way?

cyberr1981 SG

I don't understand why most singaporeans are so easily upset.

Those HDB flats with high prices are due to their prime locations and good features, like one in Marine Parade with sea view on a high storey which was bought several months ago as reported in newspapers.

Prices of flats in ulu locations, below 6th storeys and with some obstructed views are still affordable, I see like $150K to $200K.

Learn to think deep.

bic_cherry SG

Pls note that the following post has since been superseded by 'How to correct HDB flat prices by 20% for now.'- viewable below/ at [link]

Jul 25, 2010
'Imbalance' in resale HDB
By Melissa Kok

THERE is an 'imbalance' in the HDB resale market and it may take around a year or so before prices of resale flats will stabilise.

These comments were made by National Development Minister Mah Bow Tan on Sunday, who was addressing concerns about the prices of HDB resale flats, which have been consistently rising since 2008.

Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and increased demand from first-time buyers and those looking to upgrade to bigger flats.

'I think at this point in time, there's still an imbalance. I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium-term... I would expect in another year or so we should be able to stabilise everything,' Mr Mah said.

...

SG Foreigner Public Housing Rental Levy (FPHRL): Please return HDB to ALL Singaporeans now.
"HDB plans and develops public housing towns that provide Singaporeans with quality homes and living environments."

At a time when the nation's birth rates are being stymied by the lack of affordable public housing, how can foreigner demand be prevented from skewing HDB flat prices?

How about a more egalitarian way of distributing public housing which adopts a more stable and progressive approach towards the provision of public housing in Singapore?

The following suggestions return HDB to its original mission of "Providing Affordable, Quality Homes" to Singaporeans and PRs:

Minister Mah's new rules are NOT equitable as they are clumsy, somewhat unenforceable and serves little to clear old baggage- that of foreigners renting cheap 'subsidised' public housing and thus driving HDB prices at the expense of citizens who now have problems finding affordable housing for themselves, thus resulting in the postponement of marriage and in consequence, a dearth of babies in Singapore.

It is recently reported that "24,000 flat owners - own both private property and HDB flats." - how many of these flats are being rented out to foreigners to the deprivation of young SC couples? How many large HDB flats are being monopolized by individual owners for personal use or rental returns?
Would a HDB price correction of 20% occur now that rental returns from foreign lessees are taxed at 20%?

The MND must quickly implement the foreigner public housing levy as described above to level the playing field between SC, PR and foreigner ownership and use of 'subsidised' public housing programmes.

May all citizens in this world feel at home in their countries of origin.
May the Singapore citizen enjoy the privileges of citizenship, financial status notwithstanding.
May all Singaporeans feel equal in their own home country.

Majulah Singapura, I love Singapore.

Comments/ Responses?
Rgds
B.C.

PS:
Please scrap the stupid restriction on pte property owners buying HDB (within their entitlement-Pt2) as refered to in 'Don't deny investors a choice' and the silly 'no other property' rule (abroad inclusive) because it's 'over-consumption' and the 'foreigner demand' that pushes up HDB prices. The former is regulated by ownership entitlement restrictions, the latter by 'foreigner public housing rental levies'(FPHRL) and not airy fairy policies please.

References:
- 'About Us> Our Role> Providing Affordable, Quality Homes': "HDB plans and develops public housing towns that provide Singaporeans with quality homes and living environments. " [HDB InfoWeb]
- 'Housing Prices affect Birth Rates as well... !!!': "The objective of HDB flat was originally meant to provide families a rooftop at a reasonable low cost. It has diverted so largely from its original objective in late years and this issue had affected many young couples especially local Singaporeans. I really strongly hope that the government would take measures to curb all these rising prices. " [REACH 16Sept2010]
- 'Not penalising private home owners': "About 3 per cent of HDB flat owners - or 24,000 flat owners - own both private property and HDB flats." [TDY 16Sept2010]
- 'YPAP leader and new citizen Sinha Shekhar complains about low rent of his resale HDB flat': "Mr Sinha also revealed that he owns a private property, implying that he bought the resale HDB flat NOT for staying but for renting and making money." [TR22June2010]
- 'Don't deny investors a choice': "Over the years, this "sandwiched" class of private property owners worked hard to pay for their homes with the intention to move to an HDB flat during retirement. The private property could then be rented out to provide a stream of retirement income. The new requirement has effectively killed the hopes of many such people." [ST 1Sept2010]

βέτά SG

I don't understand why most singaporeans are so easily upset.

Prices of flats in ulu locations, below 6th storeys and with some obstructed views are still affordable, I see like $150K to $200K.

Learn to think deep.

$150,000?

Where where?

CCK Cemetery or Pedra Branca?

βέτά SG

The current internet chatter is now on the issue of single Singaporeans not being able to buy a resale flat while single PRs under the age of 35 can with their siblings.

Looks like the authorities may need to look into this HDB policy.

More changes on the way?

Depends on how much they value these 35 y.o. singles vote this coming election.

If it's just a small minority, doubt they would come up with any policy to help.

angel7030 SG

depend on what, it is either you buy if you can afford it or rent if you think that is more worthy. Afterall, govt kept their promise to give everyone a roof on top of their head.

βέτά SG

Roof on top of your head???

That is going to be a pain in the neck.

angel7030 SG

Better than your ass, aint it?

bic_cherry SG

The following is a revised version of the a/m previous post.

How to correct HDB flat prices by 20% for now.
Perhaps in a time of rocketing HDB prices due to the 'dire need' for HDB flats,
Gov should implement the following:

The a/m 5 pointers are more egalitarian, effective and citizen empowering solutions that I hope the gov (MBT) would consider first, before blaming the low birth rate for his (their) attempt to inflate Singapore economy with more foreigners- there must already be formed a foreigner and PR bubble, otherwise why else the sharp escalation in housing prices, esp that of public housing?

Should Singapore economy be built on bubbles or firm fundamentals?

This the PAP must answer; in the meantime, please ensure that Citizens feel both privileged and secure in their own country- so that citizens can procreate in peace and security- and uphold the vibrancy that we have from young grown to hold dear.

References:
- 'HDB Flat Types & Models': "Did you know that there are different HDB flat types? And within each flat type, there are varying models:" [singaporewatch.org]
- 'Benefits for Singapore Citizens & Permanent Residents': (Subsidies & Schemes: ICA,1May2009) (pdf)
- 'Don't deny investors a choice': "Over the years, this "sandwiched" class of private property owners worked hard to pay for their homes with the intention to move to an HDB flat during retirement. The private property could then be rented out to provide a stream of retirement income. The new requirement has effectively killed the hopes of many such people." [ST 1Sept2010]
- 'THE EFFECT OF HOUSE PRICE ON FERTILITY': YI, J. and ZHANG, J. (2010): EVIDENCE FROM HONG KONG. Economic Inquiry, 48: 635–650. doi: 10.1111/j.1465-7295.2009.00213.x [abstract]: "It is found that a 1% increase in House Price (HP) is significantly related to a 0.45% decrease in total fertility rates (TFRs), which is robust in sensitivity tests with an alternative model specification and alternative measures of TFRs. This implies that high HP inflation can account for about 65% of the fertility decrease in Hong Kong in the past four decades."
- 'Housing Prices affect Birth Rates as well... !!!': "The objective of HDB flat was originally meant to provide families a rooftop at a reasonable low cost. It has diverted so largely from its original objective in late years and this issue had affected many young couples especially local Singaporeans." [REACH 16Sept2010]
- 'YPAP leader and new citizen Sinha Shekhar complains about low rent of his resale HDB flat': "Mr Sinha also revealed that he owns a private property, implying that he bought the resale HDB flat NOT for staying but for renting and making money." [TR22June2010]
- 'Relook eligibility criteria for renting out HDB flats': "PRICES of HDB resale flats have been high for some time and there are no clear signs of them falling, despite the poor economy.
One reason for these high prices is that HDB flats are rented out." [ST 12Apr2009]
- 'HDB resale prices hit record high again rising by 4.1% in Q2': "DB resale flat prices have hit record highs again. Prices rose by 4.1 per cent in the second quarter of 2010 compared with the previous quarter. This makes it the fifth straight quarter of increase. " [CNA, 23July2010].
- 'PRICE INDEX OF HDB RESALE FLATS': Resale Price Index from 1st Quarter 1990 to 2nd Quarter 2010 [HDB InfoWeb] (pdf chart)

charlize SG

I think the root source of most of the probems currently facing Singapore is the importing of too many people into the country over such a short period of time.

Solve that issue and most of the current problems would be corrected.

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