HDB prices will rise but is still affordable! *Garmen say*

[Mockngbrd]

http://www.straitstimes.com/Breaking%2BNew...ory_424538.html

 

HDB resale flat prices - already at record high levels - are likely to continue rising this year, said National Development Minister Mah Bow Tan on Wednesday.

'The flat prices would probably go up ... by 1 per cent, 2 per cent,' said Mr Mah. 'It will just keep on going up if the economy recovers as people expect, and if confidence returns but affordability will always be there.'

 

HDB resale prices rose 1.4 per cent in the second quarter to a record high.

 

Resale flat prices go up in tandem with a very strong market, Mr Mah told reporters at the launch of the final skybridge at The Pinnacle@Duxton on Wednesday.

 

'We subsidised you when you buy and we increased the value of your flat when you live in it and... facilitate you to monetise it when you grow old. This is the best form of investment and welfare for the people,' said the minister.

 

Standing at 50 storeys, The Pinnacle@Duxton is Singapore's tallest public housing development.

 

It sits on the site of the area's first two HDB blocks, which were built 50 years ago. It was the first project in which an international architectural competition was called to get the best design ideas.

[Altivo]

if prices rises becos of inflation, then it make sense cos nothing will remain at the same price forever.

[Vextan]

lets face it. land is scarce in singapore and as more land is being developed and less is available, property price, be it public or private housing, will definately rise over time. This is not helped by the influx of foreign immigrants who are settling in. as such, increase in HDB price is only logical due to market forces. if HDB is to artificially price it low, it will have to find revenues from somewhere else to subsidise it. moreoever, there will be people who will exploit the aritifically low HDB prices for profiteering purpose, and not use it for accommodation, which will therefore defeat the mission of HDB.

 

As much as I dont like the gahment to charge commercial rate for some public services like medical and transportation, i am for the charging of market rate for public housing. To help the first time home buyers, there is the $40k grant.

Edited September 2, 2009 by Vextan

[Fit44]

HDB now starts building 2, 3, rm flat again. maybe these r the flats that r affordable.

[Vextan]

if a person mai hiam, can get a 3 rm hdb from the resale market at about $200k, less off the $40k grant, you only pay $160k. so there are viable choices and not all are out of reach.

[Vega]

i think the prices of new HDB are expensive nowaday. 3 room going at $130+K. 4 rm close to $200K.

yr 2000, a new unit of 4rm is about $130K around Seng Kang or Sembawang.

[Altivo]

another issue which they need to address is the household income ceiling. I think the problem lies in the wide price disparity between subsidised HDB flats vs resale flats.

 

There's quite a few of my friends who are unable to buy a subsidised HDB flat becos of the 8k limit. Then buying resale flat also got problem becos they don't really have that much cash on hand for COV.

[Vextan]

another issue which they need to address is the household income ceiling. I think the problem lies in the wide price disparity between subsidised HDB flats vs resale flats.

 

There's quite a few of my friends who are unable to buy a subsidised HDB flat becos of the 8k limit. Then buying resale flat also got problem becos they don't really have that much cash on hand for COV.

i ever ponder hard about the 8k income ceiling, and i think i understand the rationale of it. you see, if hdb is to increase the income ceiling from 8k to higher, say 10k, then more people will qualify for the new hdb flats, and as demand increases, it will push up the price (price is the intersection of demand and supply). as the price increases and supply is relatively fixed, it becomes out of reach to the bottom income earners , and so, increasing the income ceiling will only benefit those earning 8k to 10k ( for the above example). thats why.

Edited September 2, 2009 by Vextan

[Espire]

Beware when Marlboro talk... this is the same guy that came out with See Hor Hee... that ultimately make all car owners become losers and slaves.

[Altivo]

that's true too.... but again, income is also increasing for most folks.... which again brings up another scary trend. Income disparity is getting bigger and bigger. The rich are getting richer and the poor people are left behind.

 

Anyway, something to OT to lighten the mood. Hook up a doc and get a free flat.

 

http://www.straitstimes.com/Breaking%2BNew...ory_424469.html

 

 

[Gearoil]

another issue which they need to address is the household income ceiling. I think the problem lies in the wide price disparity between subsidised HDB flats vs resale flats.

 

There's quite a few of my friends who are unable to buy a subsidised HDB flat becos of the 8k limit. Then buying resale flat also got problem becos they don't really have that much cash on hand for COV.

 

There is where you arer sadly wrong to think the gov is concerned on whether local Sinke can afford the COV of resale flat.

 

Keeping the value of flats high, holds many distinst advantages to them ( gov).

 

Of course, it only resides in paper gain, those who need the flat as a roof over their heads.

 

If Sinkies are choosy and don't want far flung out ( remote) locations as their housing for choice then the gov will say.... don't blame them (gov) hor!

 

If Sinkies can't afford the COV, the others will take it for sure...the newly minted citiziens and PRs are queuing for it!

 

A void that cannot be filled, is filled with another alternative!

 

Unless, you're still sticking on the idea the the MIWs should 'care' for you and your frds first!

 

 

 

[Nolicense]

That's a false assumption.

 

New flats follow pricing on resale. Resales have no income cap except for the subsidies if you qualify.

8K cap for new flats cannot influence price, it can only influence demand in the new falts market. Since supply is inelastic and price determination is taken from resale market, demand plays no factor at all.

 

in fact if we take demand curve to look at for academic study, we can only try to figure out the consumer surplus/deficit.

 

Back to the resale market, if the 8-10k income is now diverted to the new flats, this demand fall in the resale market will reduce price. Hence new flats price will fall as it takes the price from the resale market.

Edited September 2, 2009 by Nolicense

[Wind30]

i ever ponder hard about the 8k income ceiling, and i think i understand the rationale of it. you see, if hdb is to increase the income ceiling from 8k to higher, say 10k, then more people will qualify for the new hdb flats, and as demand increases, it will push up the price (price is the intersection of demand and supply). as the price increases and supply is relatively fixed, it becomes out of reach to the bottom income earners , and so, increasing the income ceiling will only benefit those earning 8k to 10k ( for the above example). thats why.

 

There is a VERY BIG loophole in your arguement. You are assuming the supply is constant. If you actually follow the recent HDB data, they have SHARPLY decreased the amount of new flats built in the past few years.

 

here are the building statistics for HDB since it started. Noticed in the 70s, they are builing 25k units per year. 80s building 32k per year. 90s building 25k per year.

In the first five years of 2001 to 2005, only 11k per year. in 2006, 3k per year....

 

So why did HDB stop building flats recently?????????????????????????

 

the reason they say is probably no demand....... duh........ seriously, if you increase the income ceiling to 10k, how much will the demand increase by??? 10%, 20%, 50%?? common hdb was building like 25k per year on the average for like 30 years from 1970 to 2000. Then all of a sudden the drop the supply to 10k per year. Then to 3k in 2006......

 

The public needs to know about the facts and figures.

 

source, hdb 2006 annual report

http://www.hdb.gov.sg/fi10/fi10221p.nsf/At...-and-charts.pdf

 

Building Statistics

Commercial

1960 - 1990 Total Dwelling Units Developments

1960 - 1965 54,430 53,777 653

1966 - 1970 66,239 63,448 2,791

1971 - 1975 113,819 110,362 3,457

1976 - 1980 137,670 130,981 6,689

1981 - 1985 200,377 189,299 11,078

1986 - 1990* 121,400 119,708 1,692

Commercial

1991 - 2006 Total Dwelling Units Developments

1991 - 1995 99,557 98,994 563#

1996 - 2000 158,621 157,919 702

2001 - 2005 55,515 55,135 380

2006 2,752 2,733 19

Edited September 2, 2009 by Wind30

[Altivo]

Beware when Marlboro talk... this is the same guy that came out with See Hor Hee... that ultimately make all car owners become losers and slaves.

 

don't really like his policies but one thing i admire is his guts! He dares to roll out tough policies. Look at that Lemon Lim.... soft soft like a piece of rubber... haven't even hear him speak but see him sian leow

[Sparks]

4-room is not close to $200K now, it is MORE than $200K.

[Drive_carcar]

don't really like his policies but one thing i admire is his guts! He dares to roll out tough policies. Look at that Lemon Lim.... soft soft like a piece of rubber... haven't even hear him speak but see him sian leow

Everytime I see Mr Lim speak on TV, it's gonna cost us drivers more money. So I rather he keep quiet.

[Sg2303]

i think the prices of new HDB are expensive nowaday. 3 room going at $130+K. 4 rm close to $200K.

yr 2000, a new unit of 4rm is about $130K around Seng Kang or Sembawang.

 

erm... i just applied for a 4 rm flat and i'm paying 300k for it. so it's not really close to 200k. more like 300k.

 

[Mockngbrd]

ITS STILL AFFORDABLE!!!!!!!!! he say wan