Prices of HDB flats at record high in Q4 2009.........
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SINGAPORE: Prices of Housing and Development Board (HDB) flats are at their highest on record.
According to preliminary estimates from the HDB on Monday, the Resale Price Index of public flats stood at 150.7 in the fourth quarter of 2009 — highest on record since data was compiled in 1990.
Estimates show that prices of resale flats rose 3.8 per cent in the last three months of 2009, the fastest pace of growth since the third quarter of 2008. For the whole of last year, prices of resale flats rose about 8 per cent.
HDB said flat buyers can look forward to 1,300 build—to—order (BTO) flats in Choa Chu Kang and Hougang, which will be offered for sale on Tuesday.
The housing board said it will continue to launch more BTO projects this year if there is sustained demand for new flats, and will ensure that there is an adequate supply of flats to meet prevailing housing needs.
The HDB is due to release detailed resale price data and public housing data for the fourth quarter on January 22.
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the last time i met my poly fren who give up his job as a bank official and went into real estate as agent, he was driving a small flat pinto and i was laughing at him, can't even afford to buy me a good dinner. Then he called me up last week, and with some other frens, we get togather at St James, he was driving a BM 5 series, and foot our bills, that shows the dynamism of our property market, price go up, agent fees also go up, agent spend more, more people salary goes up and the economy start churning...Poooooo!!! poooo!!!!, hmmm...this week call him again, see can chop somemore or not?
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Show yr true colour....honey
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up again!
i think i need to check how much
is my waterfrount unit worth now
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Originally posted by noahnoah:
up again!
i think i need to check how much
is my waterfrount unit worth now
mine is waterback, also good lah -
Originally posted by likeyou:
Show yr true colour....honey
dun chop wait for what??? Chinese New year ar?? if people want to booast their wealth and ego, chop them hard hard lah. Must be streetsmart ya, alway learn to act poor -
Originally posted by noahnoah:
The housing board said it will continue to launch more BTO projects this year if there is sustained demand for new flats, and will ensure that there is an adequate supply of flats to meet prevailing housing needs.
Oh please......there is how many times over subscribed queue number for Dawson place?Sustained demand? There is demand, there is however no curb on Cash Over Valuation and limits on how PRs are buying Sg's subsidised housing.
How many of such PRs buys HDBs, sell off at profits and did not even take up citizenship?
Why is there no heavier levy or penalties for such PRs who buys, sells and remove themselves out of Singapore with nary a dent into their financial gains?
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Originally posted by viciouskitty74:
Oh please......there is how many times over subscribed queue number for Dawson place?Sustained demand? There is demand, there is however no curb on Cash Over Valuation and limits on how PRs are buying Sg's subsidised housing.
How many of such PRs buys HDBs, sell off at profits and did not even take up citizenship?
Why is there no heavier levy or penalties for such PRs who buys, sells and remove themselves out of Singapore with nary a dent into their financial gains?
Just one of the loop hole.
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I find it kinda ironic, that PRs, usually the ones with the education and professional backgrounds, are buying off so called Singapore 'subsidised' housing HDB.
When local Singaporeans have to wait for how many years before they can get their flats, start their family or bring up Singapore citizen families.
Not to mention how the lowly educated, earning less then minimum wages Singaporeans cannot afford the resale properties nor even the current new ones.
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Originally posted by viciouskitty74:
I find it kinda ironic, that PRs, usually the ones with the education and professional backgrounds, are buying off so called Singapore 'subsidised' housing HDB.
When local Singaporeans have to wait for how many years before they can get their flats, start their family or bring up Singapore citizen families.
Not to mention how the lowly educated, earning less then minimum wages Singaporeans cannot afford the resale properties nor even the current new ones.
those "buggers" are cunning, etc
"they" look at loop holes what
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cannot imagine "the price" when Singapore population became 6 million what
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Originally posted by Great1:
those "buggers" are cunning, etc
"they" look for loop holes what
It just irked me thats all.And the speed at how all these loop holes be closed...takes a few years.
But the gahment happy happy implement certain rulings and policies at less then a year grace, when it suits them.
Frankly. I am not against the PRs. I am not against the Singapore System. I am against the people that isnt helping people.
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Originally posted by Great1:
cannot imagine "the price" when Singapore population became 6 million what
when it reaches 6 millions, prices will come stumbling down.... -
now the prices of HDB pretty close
to leasehold condo
Who still want to buy HDB when it
is just a public housing and we
not even the legal owner
LoL
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Originally posted by viciouskitty74:
It just irked me thats all.And the speed at how all these loop holes be closed...takes a few years.
But the gahment happy happy implement certain rulings and policies at less then a year grace, when it suits them.
Frankly. I am not against the PRs. I am not against the Singapore System. I am against the people that isnt helping people.
it's "their policies" that make me pissed off.
"their" reply - let the market decide
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Higher HDB prices good for Singaporeans?
Monday, 21 December 2009, 11:43 pm | 4,590 views
Leong Sze Hian
Our columnist picks apart the latest announcements and replies from HDB.
I refer to the HDB’s latest announcement on Build-to-order (BTO) flats for December – in Queenstown (Dawson), Bukit Panjang and Sembawang.Once again, the HDB is saying that HDB flats are affordable, citing data that the Installment to Income Ratio for a 3-room flat, are 25% (Queenstown), 23% (Bukit Panjang) and 21% (Sembawang) respectively. This figure is derived using the typical selling price of $320,000, $150,000 and $140,000 for a 3-room flat in each of the three locations.
The HDB’s reasoning on affordability may be flawed, as only those who can afford would apply and so, using applicants’ median income is, in my view, a continuing illusion that HDB flats are affordable despite rising new HDB flat prices. To illustrate the fallacy of the HDB’s affordability assertion, even if a HDB flat is priced at say $1 million dollars, the Installment to Income Ratio may also be around 25% because obviously only those who can afford to will apply.
Perhaps a better measure of affordability is to see how many households cannot afford to apply in the first place.
According to the Department of Statistics’ Household Expenditure Survey released in December, the Average Monthly Household Income by Income Quintile for 2008, was $1,274, $3,476 and $5,480 for the 1st – 20th, 21st – 40th and 41st – 60th quintiles respectively. It showed that:
- 105,965 households earn below $1,000
- 116,092 households earn $1,000 – $1,999
- About 20 per cent of the total 1,091,399 households had income below $2,000.
With the Applicants’ Medium Household Income at $4,700, $2,100 and $2,100 for a 3-room at the three locations, I estimate that about 50% and 30% of applicant households may not be able to afford to apply for Queenstown and Bukit Panjang/Sembawang respectively. This is assuming that most applicants may be new couples whose combined household incomes may generally be lower than their current household income data which may include other working household members as well.
So, how can we say that HDB flats are affordable when 50% or 30% cannot even afford a new 3-room flat?
Another measure of affordability may be the statistic that as of September, 30,770 HDB Loans (about 7% of HDB Loans) were in arrears over 3 months. Another measure of HDB “affordability” may be the number in arrears on their Service and Conservancy Charges (S & CC), for over 3 months. However, since the co-co-ordinating chairman of PAP-run town councils had declined to give statistics on the total number in arrears, we can only estimate that about 53,108 HDB households (average of 6% of the total number of flats since 3% to 9% were in arrears) were in arrears.
The HDB has stopped building smaller 2-room flats for many years and built lesser 3-room flats relative to larger flats. Although the HDB has started to build more 2 and 3-room flats, the typical 3-year period to completion for BTO and the minimum occupation period of five years before a new flat with HDB loan can be sold may continue the supply shortage of smaller flats in the open market to meet rising demand. Thus, the prices of smaller flats may continue to skyrocket, making them beyond the affordability of more and more Singaporeans, especially singles and downgraders.
The HDB “affordability” data also assumes a 30-year HDB concessionary loan and applicants over the age of 35 who may only qualify for a shorter loan period will have to take a bank loan with higher interest rates because they have used up their two times HDB loan if they had previously applied and upgraded with their parents’ flat or are downgraders, resulting in higher monthly installments and thus increasing the Installment to Income Ratio. Furthermore, the HDB also assumes that applicants are first-timers who qualify for housing grants.
Moreover, since the “Applicants Median Household Income is based on applicants’ income in our Oct 2009 Sale of Balance Flats Exercise”, the data may be skewed as quite a lot of Balance Flats may be higher-priced units which people could not afford to accept in the first place.
Point-by-Point Rebuttal
I also refer to the articles “Flat prices will continue to rise but still be affaordable” (ST, Dec 14) and “Soaring home prices plaque China couples” (My Paper, Dec 14). My point-by-point commentary on the former article is as follows:
“Singaporeans can expect the prices of HDB flats to keep on rising as long as the economy continues to grow, Minister Mentor Lee Kuan Yew said yesterday“
Although the economy grew from 1996 to 2009, HDB resale prices went through a 13-year bear market with prices taking 13 years to recover to their last high in 1996.
“However, he assured young couples that the Government will help them to own their first flats“
In recent years, the housing grants given has not been able to catch up with the rising price of new HDB flats. If the price increases more than the grant, is it really a grant or subsidy?
“The Housing Board will also keep building affordable homes ’so that each generation of Singaporeans will continue to have a stake in the nation’, he added. Mr Lee gave the assurance when he visited the newly-completed crown jewel of Singapore’s public housing which he said is symbolic of the spectacular transformation of the country”
Affordability of HDB flats has increasingly become an issue with the bottom 20% of households’ monthly income declining by 0.3 per cent per annum in nominal terms (before adjusting for inflation) from 1998 to 2008, and the 21st to 40th quintile of households’ income increaing by only 0.9 per cent (2.3 per cent increase less 1.4 per cent inflation) in real terms.
“Later, he told reporters that the direction of HDB home prices depends on the people. If they have confidence in the country and support the Government, then prices ‘must go up’ as they have every year since 1965, he said, in response to reporters asking what he would say to young couples lamenting the sharp price increases in recent years. The alternative, Mr Lee said, is grim. ‘They’ve got to decide if the country is going to go up or go down. If the country is going to go down, then the economy will go down, people’s incomes will be down, unemployment will be up and property values will go down.’“
Actually, the main determinant of HDB prices is the HDB’s “market subsidy pricing” policy which has led to increasing HDB prices. Perhaps the best indication of affordability is the statistic that 30,770 HDB loans are in arrears for over three months which is about seven per cent of HDB loans. There are no statistics available for HDB bank loans in arrears or foreclosed.
“In the last 45 years, HDB home prices have soared. For instance, a three-room flat in Queenstown in 1964 cost $6,200, but would fetch at least $200,000 today. However, much of the increase in prices has taken place in the past few years. In his speech, Mr Lee also dwelt on the many benefits of a home-owning society, which had its roots in the policy introduced in 1964. It gave a community of immigrants a sense of rootedness in Singapore, he said, adding: ‘It is the foundation upon which nationhood was forged.’ Owning their homes also gives people a pride that is critical in preventing housing estates ‘from turning into slums, which is often the fate of public housing estates in other countries’, he said. But the key advantage is that the policy gives people ‘a tangible stake in worth’ and motivates them to work hard. If Singapore prospers, their flat values will appreciate and they share in the growth,’ he said“
So, your three-room flat has appreciated. How can you benefit from the growth? Downgrade to monetise your $200,000 three-room flat. But, to downgrade to a new smaller two-room flat you have to wait 30 months. Where are you going to stay during that 30 months? If you have to downgrade immediately to a smaller resale two-room flat, the price differential is very small – so, how to monetise?
“He added: ‘If all the 900,000 HDB flats built over the past 50 years were rental flats… We would not have the stability, progress and prosperity that a stake in home ownership of a growing asset has made possible.’ As assets, HDB homes have become more valuable partly because their prices have moved in tandem with the economy, thus allowing citizens to share in the fruits of growth, said Mr Lee.“
If most Singaporeans had rental flats, very few would have lost their homes and life CPF savings when they defaulted on their mortgage. Most Singaporeans would have more than a million when they retire, instead of the 25 per cent projected to have less than $40,000 in their CPF at age 55 with only 60 per cent to have more than $67,000 (source: Longevity Insurance Committee report).
To put this into perspective, a 20 year-old earning just $1,500 a month with no pay increase for the rest of his life will have $1.05 million at age 65 ($517.50 CPF monthly contribution compounded at five per cent for 45 years).
“It has 1,848 flats. At the first launch in 2004, its four-room flats cost an average $335,000 and the five-room flats, 395,000. This year, the HDB priced these same-sized flats at an average of $486,000 and $590,000 respectively.“
So the HDB must have made a lot of money instead of the $2 billion deficit for the last year!
“Mr Lee described the building of the Pinnacle as ‘a strong testament to our tenacity and capabilities as a people’. ‘I see more and more of these old blocks being demolished, and new blocks like the Pinnacle being built,’ he added.”
More Singaporeans having affordability problems with HDB flats, and ending up with very little when they retire.
High HDB prices driven by speculators, hurting genuine home seekers
Monday, 4 January 2010, 10:50 am | 581 views
The following is a letter to the Today newspaper by Mr See Leong Kit which was “rejected for publication.”
Your report “Asset that keeps growing” (TODAY Dec 30) highlighted Minister Mah Bow Tan’s simplistic and optimistic view that HDB flat values will always go up.Home prices in Singapore have become “ridiculously-high” for private property and “sky-high” for HDB flats.
Is it financially prudent for our young couples to start their marriage saddled with huge housing debts for something as basic as a roof over their heads?
The broader issue is that land-scarce Singapore must have proper policies to promote an “orderly” property market that is sustainable by economic growth, real demand and especially rising incomes. Such a market with gradual capital appreciation will benefit many Singaporeans from successive generations.
Whereas a “speculative” property market of sky-high prices is largely driven by speculators out to make a quick buck by “flipping a property”. But when the Property Bubble finally burst, both speculators and genuine home owners will be hurt by rapidly falling property values.
During our 1994 Property Bull Run, prices of both private and HDB properties were rising at 30% per annum for three years in a row. But since when has our economy as well as our salaries grow at such a phenomenal rate?
Our 2007 Property Bull Run lasted only nine months, cut short by the US sub-prime housing bubble turning into a Global Financial Crisis that brought recession and job losses to Singapore. But during that nine months, average freehold property value in our East Coast area doubled from $700 psf to $1400 psf.
A property may be “an asset that can be monetised”, but it can also end up as a millstone around one’s neck. High property prices will affect the average Singaporean as follows:
> As a home-buyer. Is it wise to sink so much of your hard-earned monies in a brick-and-cement house with little left over for your children’s upbringing, your own healthcare and retirement needs in old age?
> As an employee. If your employer has to pay high office rent out of its operating budget, can it afford to pay you a better salary,increment and bonus?
> As a consumer. If a shopkeeper or supermarket operator has to pay high commercial rent, will it not charge you higher prices for goods and services?
Finally, two pertinent questions for HDB flat-owners:
Are there not more important things in life, such as good health, close family ties and well brought-up children than this materialistic addiction to “HDB Upgrading Carrots” and “my HDB flat is worth a lot”?
Should you die suddenly from an accident or heart attack, can you take your high-valuation upgraded HDB flat along with you to the next world?
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Originally posted by noahnoah:
now the prices of HDB pretty close
to leasehold condo
Who still want to buy HDB when it
is just a public housing and we
not even the legal owner
LoL
ya, and buy condo can sell anything, HDB need another 5 years, by that time, prices all will stumble now, because 5 years later, we would had reached 6 millions and most people will opts for condo, HDB can go fly kite liao. The best is to buy landed property now, freehold ya
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Originally posted by Great1:
High HDB prices driven by speculators, hurting genuine home seekers
Monday, 4 January 2010, 10:50 am | 581 views
The following is a letter to the Today newspaper by Mr See Leong Kit which was “rejected for publication.”
Your report “Asset that keeps growing” (TODAY Dec 30) highlighted Minister Mah Bow Tan’s simplistic and optimistic view that HDB flat values will always go up.Home prices in Singapore have become “ridiculously-high” for private property and “sky-high” for HDB flats.
Is it financially prudent for our young couples to start their marriage saddled with huge housing debts for something as basic as a roof over their heads?
The broader issue is that land-scarce Singapore must have proper policies to promote an “orderly” property market that is sustainable by economic growth, real demand and especially rising incomes. Such a market with gradual capital appreciation will benefit many Singaporeans from successive generations.
Whereas a “speculative” property market of sky-high prices is largely driven by speculators out to make a quick buck by “flipping a property”. But when the Property Bubble finally burst, both speculators and genuine home owners will be hurt by rapidly falling property values.
During our 1994 Property Bull Run, prices of both private and HDB properties were rising at 30% per annum for three years in a row. But since when has our economy as well as our salaries grow at such a phenomenal rate?
Our 2007 Property Bull Run lasted only nine months, cut short by the US sub-prime housing bubble turning into a Global Financial Crisis that brought recession and job losses to Singapore. But during that nine months, average freehold property value in our East Coast area doubled from $700 psf to $1400 psf.
A property may be “an asset that can be monetised”, but it can also end up as a millstone around one’s neck. High property prices will affect the average Singaporean as follows:
> As a home-buyer. Is it wise to sink so much of your hard-earned monies in a brick-and-cement house with little left over for your children’s upbringing, your own healthcare and retirement needs in old age?
> As an employee. If your employer has to pay high office rent out of its operating budget, can it afford to pay you a better salary,increment and bonus?
> As a consumer. If a shopkeeper or supermarket operator has to pay high commercial rent, will it not charge you higher prices for goods and services?
Finally, two pertinent questions for HDB flat-owners:
Are there not more important things in life, such as good health, close family ties and well brought-up children than this materialistic addiction to “HDB Upgrading Carrots” and “my HDB flat is worth a lot”?
Should you die suddenly from an accident or heart attack, can you take your high-valuation upgraded HDB flat along with you to the next world?
All this just need one simple logicto answer
Becaus land is very limited in Sg
Supply and demand curve
More and More aliens flooding this very
small piece of concrete land
So bo bian , Govt release more land,
more enblock sales . still not enought !!
Bo bian . Prices will have to go up liao
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i pity those that do not "depend on their parent" to buy hdb flats
cos it's no longer "affoedable"
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so what if ur hdb flat is worth $1m?
so what if some sucker comes and buy your unit for $1m?
the next unit you are looking for is prolly >$1m unless you decide to downgrade to a smaller unit or a further location...
eventually if the furthest location cost more than $1m, where are you going to move to?
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Originally posted by noahnoah:
All this just need one simple logicto answer
Becaus land is very limited in Sg
Supply and demand curve
More and More aliens flooding this very
small piece of concrete land
So bo bian , Govt release more land,
more enblock sales . still not enought !!
Bo bian . Prices will have to go up liao
"you know, i know" -
Originally posted by angel7030:
ya, and buy condo can sell anything, HDB need another 5 years, by that time, prices all will stumble now, because 5 years later, we would had reached 6 millions and most people will opts for condo, HDB can go fly kite liao. The best is to buy landed property now, freehold ya
even developer is selling freehold land as leasehold now...
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funnie thing..
some ppl dun want to listen
that fact that prices will go up
which was predicted months ago
Nvm Lar i still wait wait sure will go down
one~ wait till cows go home
now up liao
everday #@$@#$#
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Mah: HDB flat values will always go up
by See Leong Kit
[ Rejected for publication by TODAY. More proof that, for the PAP Government, "the truth hurts" and "they just can't handle the truth". ]
Your report “Asset that keeps growing” (TODAY Dec 30) highlighted Minister Mah Bow Tan’s simplistic and optimistic view that HDB flat values will always go up.
Home prices in Singapore have become “ridiculously-high” for private property and “sky-high” for HDB flats.
Is it financially prudent for our young couples to start their marriage saddled with huge housing debts for something as basic as a roof over their heads?
The broader issue is that land-scarce Singapore must have proper policies to promote an “orderly” property market that is sustainable by economic growth, real demand and especially rising incomes. Such a market with gradual capital appreciation will benefit many Singaporeans from successive generations.
Whereas a “speculative” property market of sky-high prices is largely driven by speculators out to make a quick buck by “flipping a property”. But when the Property Bubble finally burst, both speculators and genuine home owners will be hurt by rapidly falling property values.
During our 1994 Property Bull Run, prices of both private and HDB properties were rising at 30% per annum for three years in a row. But since when has our economy as well as our salaries grow at such a phenomenal rate?
Our 2007 Property Bull Run lasted only nine months, cut short by the US sub-prime housing bubble turning into a Global Financial Crisis that brought recession and job losses to Singapore. But during that nine months, average freehold property value in our East Coast area doubled from $700 psf to $1400 psf.
A property may be “an asset that can be monetised”, but it can also end up as a millstone around one’s neck. High property prices will affect the average Singaporean as follows:
> As a home-buyer. Is it wise to sink so much of your hard-earned monies in a brick-and-cement house with little left over for your children’s upbringing, your own healthcare and retirement needs in old age?
> As an employee. If your employer has to pay high office rent out of its operating budget, can it afford to pay you a better salary,increment and bonus?
> As a consumer. If a shopkeeper or supermarket operator has to pay high commercial rent, will it not charge you higher prices for goods and services?
Finally, two pertinent questions for HDB flat-owners:
Are there not more important things in life, such as good health, close family ties and well brought-up children than this materialistic addiction to “HDB Upgrading Carrots” and “my HDB flat is worth a lot”?
Should you die suddenly from an accident or heart attack, can you take your high-valuation upgraded HDB flat along with you to the next world?
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anyway, you got a property now, sell, i can make you an instant cash in hand millionaires, try not to let the agent earn ya.