2,000 applications for 200 5-room BTO Dawson flats costing more than $500K
December 29, 2009
Despite the hefty price tag, 9,865 Singaporeans have applied for 1,718 Build-to-Order (BTO) flats at the Dawson estate in Queenstown, or six times oversubscribed.
Surprisingly, the five-room flats which are the most expensive, have proved to be the most popular with over 2,000 applicants vying for the 200 units for offer.
According to HDB Infoweb, the prices of these flats start from $112,000, $280,000, $373,000 and $532,000 for SA, 3-room, 4-room and 5-room flats respectively.
For that price, one can get a decent 3-room condominium in the suburbs like Woodlands, Pasir Ris and Jurong.
According to a Financial Consultant interviewed by Lianhe Wanbao lately, only couples who earn a combined income of more than $7,500 monthly should consider buying these 5-room flats.
Even then, they will have to fork out a few hundred dollars in cash on top of depleting their CPFs for the mortgage loan such that they will probably have little savings left for their retirement.
From the “overwhelming” response, it appears that the home buyers are not aware of what is in store for them.
Unless they are assured of a yearly increase in their salary to keep pace with inflation, they will need to slog day in and out for the next thirty years just for a roof over their heads.
The prices of HDB flats have skyrocketed in recent years due to the influx of foreigners and limited new flats built by HDB.
As HDB is the sole agency building public housing in Singapore, it is able to set any price as it sees fit and Singaporeans will have no choice but to buy the flats from them.
For some inexplicable reasons, the prices of BTO flats are pegged to transactions of resale flats in the vicinity over the last three months.
This means that HDB can “timed” the release of the BTO flats to capitalize on the booming property market.
An Indonesian PR paid $653,000 for a 4-room resale flat at Queenstown only a month ago which make the BTO Dawson flats look “cheap”.
While there are some grouses on the ground at the rising cost of public housing in Singapore, HDB continues to insist that they remain “affordable”.
National Development Minister Mah Bow Tan even castigated Singaporeans for being “choosy”.
The news of the BTO flats being over-subscribed was splashed across the major papers today which will provide an ideal “excuse” for HDB to shield it from future criticisms:
“See, if HDB flats are indeed unaffordable, why are there still so many Singaporeans queuing up to buy them?”
But then again, HDB enjoys a complete monopoly over the public housing market in Singapore.
About 85 per cent of Singapore’s population live in HDB flats. Unless one is rich enough to afford a private property, he/she will have no choice but to buy from HDB.
our minister said hdb flats is still "affordable"
Originally posted by John Penn:our minister said hdb flats is still "affordable"
" 9,865 Singaporeans have applied for 1,718 Build-to-Order (BTO) flats at the Dawson estate in Queenstown, or six times oversubscribed. "
sounds pretty affordable to me.
In a concentration camp of 9,865 prisoners, the prison guards threw 1,718 grains of rice into the masses of hungry mouths. All hell breaks loose as all the prisoners fight each other for that little scrap to eat.
The prison warden observes from the watch tower and remark, "Look at that! There is enough for all to eat!"
Twisted Logic I say. Equating lack of supply with affordability. What are we, IDIOTS?
to them,when lot of people fight for the same flat, it means its affordable . Twisted logic.
Perhaps to keep housing prices affordable, and housing accessable, govt should 'sell properties' without the right for such property to be put on open market sale. Ie: buying price= $400K, after use of 30 yrs, the only means of disposal is via inheritance (parent to child/ sibling ONLY) OR sell back to govt. Govt will then pay owner 70% of flat price.
This would satisfy many middle income earners and keep prices low as govt will then NOT have to tag HDB prices so much to open mkt prices. Can then tag more reasonably to median income levels. (NOT AVE INCOME LEVELS!!!)
Of course in this way, this scheme will not allow quick profit, but I think this scheme will certainly give many a necessary roof over their heads and cut down the numbers of 'underpriviledged' in our society.
Just to add, such policies would prevent govt fr allowing high inflation bc the amt of $ govt will get back would be much less if high inflation occurs.
In anycase, that U can get $$ out of selling HDB is bull shit bc it's on 99yr lease (w exception of high inflation occuring). After staying for 50+yrs, govt can e.g. start a small war (accuse M'sia of stopping H2O), then say buildings not stable, then U loose everything...
Have a nice day. :).
Originally posted by John Penn:our minister said hdb flats is still "affordable"
Sure affordable....take loan and pay loan until mati. Then children take over the loan...