I was also heartened to read the news today where Minister Mentor Lee Kuan Yew opined that since 85% of Singaporeans lived in HDB flats, the government would strive to make HDB homes the most valuable possession they own. In his words:
"85% of Singaporeans are living in HDB flats and we intend to keep the values of these homes up. It will never go down."
This was spoken as the MP for Tanjong Pagar GRC announced the 5 year master plan for Tanjong Pagar which includes upgrading programmes. Since I live in a HDB flat, I am glad that the government is committed to making the value of my home rise. In fact, I am glad that I am an owner of a HDB flat as I have witnessed the value of my home increase significantly over the years.
Can you really benefits from a high HDB pricing? Unless you have 2nd or more properties.
ReplyDelete"the government would strive to make HDB homes the most valuable possession they own", this comment is meant for those who don't understand financial figures and for election talk.
When prices of properties and HDB is high, rental will be high as well, this in term will increase business cost and this cost will be passed to the consumers-> higher inflation!
You think you will really benefit from high property/HDB value?
Think again!
In fact, owning an HDB flat is the PAPAYA's way of making sure you will work for and fight in time of war for Singapore. Is it really for you comparing the Elitists' pay to yours.
ReplyDeleteHaving said this, most Singaporeans cannot afford to buy a 2nd private property, but you can down-grade to release the asset price differences. I mean from a 5-room to 4-room to a 3-room flat to 2-room to "studio-flat" for senior citizens.In theory it can be done. I wonder has anyone in Singapore done all the way to "studio-flat".
I have down-graded from an executive flat to 4-room. Net profit was about only 80-90k at that market. So at today market, if I down-grade to 3-room my estimated net profit will be 70-90k also.
Are you really so naive? How can you call yourself a personal finance blogger when you didn't even apply your own analysis to the HDB price situation? Do you recall what happened between 1997 to 2004? You think your HDB flat can go up in price forever just because PAP say so?
ReplyDeleteNot they say so, the "Papaya" make it so when they want to. Just like not to long ago. Now election year, they tell you they putting all the stops from importing more immigrants to increasing stamp duty and less % of bank loan...blah, blah.... Of course when the world economy "collapse" due to sudden appearance of black swan, then the "Papaya' will KIV their plans and wait for the next cycle. My friend, everything has it's cycle of up and down but who is really "moving things" as and when they like in Singapore; when there is an opportunity
ReplyDeleteInfact land in Singpore is getting smaller each year as population grow. Means , demand is gettig higher. There's no way HDB resale price will fall too low.
ReplyDeleteDo agree with the other comments left here. Having asset price that does not drop like HDB might not be such a good idea.
ReplyDeleteWhen it comes to upgrading, whether to a bigger HDB or a private apt will be difficult as prices can only get more; outpacing our earnings.
Also the growth of this asset bubble is scary. The day (if it ever happens) when SG is not able to attract foreign investments/monies onto our shore, our asset prices will be in freefall.