Four ways to bring down flat prices

[Carer]

Some low income earners can get additional grant up to $40k. So 40k + 40k = 80k

 

from hdb.gov.sg

 

1. Near parents $10k (within 2km radius)

2. First time buyers $30k grant

 

1+2 can only be used to offset the valuation price.

 

 

3. additional housing grant (AHG)

combined family income of less than $1.5k u get $40k

<$2k, $35k,

<$2.5k, $30k

...

...and so on

...

<$5k, $5k

 

3 can be used to offset any COV amounts. extras will be used to deduct from valuation price

[Joseph22]

You forgot we are in land-scarce SGP. We can't go on building flats indefinitely. In some areas, to build a new block, got to 1st demolish another.

 

 

1) All HDB must be owner occupied? no rental? does he know how drastic this is? Where is all the PR going to stay? condo?

PR's also can buy HDB flats leh.

 

 

4) no property agents... :) does he know he can sell his own flat without agents? why is he forcing other people to sell also without agents. Some of us unlike him have better things to do with our time.... there is a reason why property agents exist.

 

This can not entirely impossible. Maybe HDB can set up a department to handle resale for owners. And do it for FREE!

 

 

Not PR then what about work permit holder?? they also need to rent flat. how about the oversea student? this is a very selfish though of not allow rental.

you ask governement to provide for free?? you wait long long, do you know that oversea in ang moh country, Agent fee is around 6% across the board?knowing our governement if they were to set up a department for this, be sure that the price will also be around this region. becareful wat you are asking for.

[Joseph22]

Actually, I have nothing with the price issue. But I feel that availability is a big problem. I read on this forum people has tried to get BTO for 10 rounds to get a flat. BTO always over subscribed many time. no walk in selection anymore.

 

I mean if you want to go BTO route, so that there will be no oversupply of flats, I think you should be more responsive to changes in demand. After all there is no risk. Every flat built has a buyer so why are you making so hard for citizens to get a BTO flat? Even after getting a BTO flat, they have to wait for a few years to move in.

 

What they should do is apply liao go to MP and ask MP to write letter. that way, might have a chance. at least i know those who did it get a good que number.

Anyway, it is one of the way for governement to encourage ppl to marry young, cause young you got time to wait for BTO.

[Carer]

Actually, I have nothing with the price issue. But I feel that availability is a big problem. I read on this forum people has tried to get BTO for 10 rounds to get a flat. BTO always over subscribed many time. no walk in selection anymore.

 

I mean if you want to go BTO route, so that there will be no oversupply of flats, I think you should be more responsive to changes in demand. After all there is no risk. Every flat built has a buyer so why are you making so hard for citizens to get a BTO flat? Even after getting a BTO flat, they have to wait for a few years to move in.

 

To add on to the bold part:

 

Do not forget that some applicants for BTO already have a flat (older generations). they are just trying their luck to see if they are able to get a new flat at a low price.

 

If BTO was to meet the number of applicants, there will be a sudden supply of resale flats. if that happens, resale flat prices will drop and many ppl will be unhappy.

[Joseph22]

To add on to the bold part:

 

Do not forget that some applicants for BTO already have a flat (older generations). they are just trying their luck to see if they are able to get a new flat at a low price.

 

If BTO was to meet the number of applicants, there will be a sudden supply of resale flats. if that happens, resale flat prices will drop and many ppl will be unhappy.

 

Not just that, if resale flat drop in price, BTO will instead look very expensive. when that happen, everyone flood to Re-sale, then the price inflat again. so the cycle just go round and round.

[Sgnick]

From 4th Quarter 2006 till 3rd quarter 2009

HDB resale price up 33.5% (estimated)

Salary up 15.775% (estimated)

 

Anyone else please feel free to do your own calculation and analysis and show in this thread, as in no way do I claim the figures above to be accurate.

 

Sources:

 

HDB resale price

-------------------

 

From 4th Quarter 2006 till 2nd quarter 2009, price of HDB resale price have gone up 32%. Now is almost end of 3rd quarter and still rising due to buying frenzy, so let's make it 33.5% now (just my estimate) at this point 19-Sept-09.

 

http://www.hdb.gov.sg/fi10/fi10201p.nsf/WP...ex?OpenDocument

 

A $300K flat in 4Q/2006 will now be $400.5K

 

$400K flat is now $534K

 

 

Let's compare to wages in Singapore

--------------------------------------------

 

From 4Q/2006-3Q/2009, wage increase can be estimated to be (4.5/4=1.25)+5.9+4.2+(5.9/4x3=4.425) = 15.775% increase

 

 

2009 Jan to current date

No report yet but lets say this year is another damn good year for wages (like 2007). Let's take it as another +5.9% for full year till end 2009 (which i highly doubt due to recent newspaper reports on expecting low to no bonuses).

 

2008

With the economic downturn and increased business costs in 2008, employers were more restrained in granting salary increases. Total wages comprising basic wages and bonuses in the private sector rose by 4.2% in 2008, down from the growth of 5.9% in 2007. The moderation in total wage increase in 2008 stemmed from the drop in bonus payout from 2.36 months in 2007 to 2.31 months in 2008 (-2.1% as opposed to an increase of 8.3% in 2007). The basic wage increase (4.4%) was broadly unchanged from 2007 (4.3%).

 

http://www.mom.gov.sg/publish/momportal/en...0630-Wages.html

 

2007

Amid the strong economic performance and tight labour market, total wages rose by a 7-year high of 5.9% in 2007, up from 4.5% in 2006. The total wage increase of 5.9% resulted from a basic wage gain of 4.3% and an increase in bonus payout (also known as annual variable component) from 2.18 months in 2006 to 2.36 months in 2007. The rise in annual variable component accounted for 2.3% point of the 5.9% total wage increase. The remaining 3.6% point came from the increase in basic wages, which accounted for 61% of the total wage gain in 2007, lower than 69% in 2006.

http://www.mom.gov.sg/publish/momportal/en...0630-wages.html

 

2006

Up 4.5%.

http://www.mom.gov.sg/publish/momportal/en...n_Wages_06.html

 

[Waffenss]

The resale market is still tight because many owners, who have already moved out, are simply holding on to their property or hoping for a collective sale.

 

If owners do not live in their flats any more, they should be put on the market immediately.

 

There should be an income and assets cap for owners of HDB flats. If the owners are very successful in life after buying an HDB flat, they should leave their property on reaching a certain threshold and sell it.

 

It is not right that families with multiple properties and very high salaries are able to hold on to their HDB flats.

 

this is akin to telling pple who are successful cannot eat at hawker or coffeeshop foodstalls but must dine in fancy restaurants??

[Kxbc]

Yes, I agree with you too. My gf and I die die want to avoid all the North, East and Far West estates. Prices are crazily unaffordable (as the area we want is where all the record HDB prices are), so we just have to resort to BTO in the area and praying hard for a good Q no. Maybe sell one of our cars. If we are not so lucky, then we will wait and save up 1st.

 

Fact of life is I want an Ang Moh Chu at HDB prices, but it is just not realistic. So I urge all young couples to be more realistic, if your savings are low, don't keep aiming the mature estates. If not, find a way to grow your savings, through beg or borrow.

Isn't your answer there? Don't stop at selling one. Sell both and realise some cash. Is having a car that important to your job eg you are insurance/real estate agents, sales job (but I would assume there is a transport allowance somewhere)?

[Drive_carcar]

I think the ideas are not practical and really lack foresight. There's nothing wrong with high property prices in itself. In fact, a depressed property market will bring with it many side effects which will spiral us deeper into recession. In the midst of getting out of recession, the last thing we want to do is to artificially depress prices. The best thing to do is to moderate the increase in prices.

 

On the one hand, our expectations must be realistic. There's a flat type for every income group. A 4 room flat in central / matured estate, high floor, sea view flat is probably out of reach for most of us, and even I don't care for it. On the other hand, we must constantly work to inprove ourselves so that we can move up in life.

 

Ultimately the govt must do their part in insuring a level playing field for S'poreans so that we can earn better incomes. With better income, the issue of expensive property price becomes less of an issue.

 

[Fourth]

this is akin to telling pple who are successful cannot eat at hawker or coffeeshop foodstalls but must dine in fancy restaurants??

 

No... successful people can eat at hawker still, but at market price. Not for food that is subsidised by government. That is for the needy, not successful people.

 

It is just like if a charitable organisation holding a $1 meal. People driving mercs also go and queue. But they are not the needy.

[Drive_carcar]

No... successful people can eat at hawker still, but at market price. Not for food that is subsidised by government. That is for the needy, not successful people.

 

It is just like if a charitable organisation holding a $1 meal. People driving mercs also go and queue. But they are not the needy.

While driving mercs to queue for $1 meal at charitable organisation events are too much, having access to subsidised housing is a different matter. It's a basic right of being a citizen. I don't think successful people should be punished for doing well and reaping the rewards for their hardwork.

Edited September 19, 2009 by Drive_carcar

[Fourth]

While driving mercs to queue for $1 meal at charitable organisation events are too much, having access to subsidised housing is a different matter. It's a basic right of being a citizen. I don't think successful people should be punished for doing well and reaping the rewards for their hardwork.

 

I don't see how successful citizen is being punished. Before the citizen became successful, the citizen surely qualified for the subsidy. No graduates start work already earn 8k. But he chose not to buy the flat then??

 

Example citizen A and B. A chose to "invest" in other avenues (like stocks) instead of flats. B bought a flat with his money. After 5-10 years, both A and B became richer in their own rights. B don't have a lots cash, but he is asset rich. Now A says flat now how come so ex. A not citizen meh? Why should A reap double rewards by being able to go back time to get cheap price like B? Investing of one's money is one's choice and responsibility. If A now buys expensive flat and ends up in same situation as B, is he being punished?

 

 

 

 

 

 

[Scoots]

While driving mercs to queue for $1 meal at charitable organisation events are too much, having access to subsidised housing is a different matter. It's a basic right of being a citizen. I don't think successful people should be punished for doing well and reaping the rewards for their hardwork.

 

And to top it all off: HBD flats are NOT subsidised!!!

[Fkadir]

People like me who is young and both my partner and I have just started working all feeling the pinch. Condo is unrealistic and trying to be realistic the current price of the flat is totally impossible for 2 of us. Hence our timing of marriage has to depend on the property market

 

Get a smaller brand-new flat in more remote areas of Singapore like Punggol/Sengkang/Woodlands/Jurong. Im sure the prices there are affordable. IMHO. :)

[Fourth]

Maybe not subsidised to your expectation.

[Scoots]

Maybe not subsidised to your expectation.

 

by subsidized, most people would be expecting the flats to be sold at below cost. That's clearly not the case with new HDB flats

[Greggywong]

Frankly..I do not understand why is there a need to bring down flat prices?? If the thread starter meant for brand new HDB flats..I have nothing to say..but if he meant for 2nd hand flats...would you want to sell your house at a loss or at a profit?

Edited September 19, 2009 by Greggywong

[Drive_carcar]

Frankly..I do not understand why is there a need to bring down flat prices?? If the thread starter meant for brand new HDB flats..I have nothing to say..but if he meant for 2nd hand flats...would you want to sell your house at a loss or at a profit?

Atitificially bringing down flat prices it's just to dig us deeper into recession, possibly into depression. A good dose of prolonged depression it teaches all of us to live within our means, and finally HDB flats are cheap again. Only then even fresh grads and buy a 5 room HDB flats, if they can get a job.