Solution to solve rising HDB prices

[Ender]

The whole thing about allowing public housing to be out on the open market and thus causing new public housing to appreciate too, benefits the most to thse who are not suppose the be the beneficiary for public housingin the 1st place.

 

Those who benefits

1. The speculators who do not need gahment subsidy in housing. They usually own private property for themselves to stay., but play in the HDB resale market, coz to them lower risk (benefit 1), generate easily $100,00 profit within a year (benefit 2, go read today Sunday Times). They can affodr high COV, and willing to pay. Indirectly causing resale market to appreciate, coz they are very willing buyer.

 

2. The PR who has no loyalty to SG and stay here in HDB for many years for his property to appreciate. He can reap huge benefit from his property by selling to a true blue sgrean, withdraw his cpf and balek kampong.

 

3.. Add more if you will,

 

 

Those who suffer,

1. True blue sgrean who are depending on public housing. Taking 30yrs loan on new public housing has become a reality.

 

 

The sooner we decouple public housing from open market the better. I am one of those who fully paid my hdb in 5yrs. My house has appreciate at least 100K, but I will not cry if one day HDB property crash, instead rejoice, as my children will be able to afford a roof over their head without daddy's help and a 30yrs loan.

 

 

 

 

[Scoots]

Isn't this what is going on currently.

Item 1. isn't exactly happening ...

[Scoots]

err... if you don't let PR buy from HDB, they will just buy in resale. The demand is still there. What is worse is that HDB everyday keep saying their supply is enough, every citizen can buy a flat in a few tries. Why should the supply not keep pace???? HDB can build LOTS of flats as they have shown in the past. Why will the price go higher?? The trick to this problem is that HDB is pricing the new flats to resale prices. By shifting the demand from resale to new flats, I am 99% sure the prices of the HDB will not go up so fast. HDB will not have an excuse not to build more flats when the DEMAND is so obvious. And when the resale prices drop, they have no excuse to price it any higher.

 

There are very good arguements for pricing the new HDB flats to market (resale) prices as there just isn't another better way of pricing it if you THINK about it. A true solution be free market oriented

 

The Demand you speak of is for good locations. There are empty flats in less preferred locations that first timers are rejecting. First timers need to be realistic in their home hunt. There is a difference between NEED and PREFERENCE. There ARE others ways of pricing it if you THINK about it.

 

If new flats were to be priced at really subsidies prices (maybe at cost and not even really subsidized ... as long as not pegged to resale prices) such that first timers can see a significant difference in getting a new flat from HDB as versus getting on the resale market, then they have even less reason not to get from HDB to satisfy their NEED ... unless they PREFER to buy from resale market .. then there's no reason to complain as they choose to go that way

 

And frankly, the situation on the resale market now IS a result of a free market so I don't see how opening up HDB's new flats to PRs is going to help the situation. Personally, I don't think that there's that much of PRs in the picture to really have stretched the market so. Those high COV cases are most likely people who have made a tidy profit from en bloc sales and are buying a flat of CHOICE location ... because they can afford it.

 

The situation at the resale market is that sellers in prime/good locations are asking for high COV... and buyers are giving in. A free market.

 

 

[Ladykillerz]

BTO is one of the privileges offered by SG govt to SGeans.

If BTO is also offer to PRs, I think we are with no different.

 

PRs only eligible to buy resale HDB flats.

However, when time passed, PRs can also earn profits with the uptrend pricing.

This is silly.

 

Anyway, some will not wait for BTO cause it will take years for completion.

End up, some will still compete with the PRs for resales.

 

I would suggest, SG govt to show two price tags.

For example, SGeans $300k valuation and PRs $400k valuation.

This will make SGeans more to be the homelander and being protected.

 

Anyway, OOT.

Couple with >$8k and single with >$3k are unable to get HDB loan and grants.

This is already a wrong move.

SG govt should revise the salary mark...~

[Jamesgetz]

if i recall, the subsidy for 1st time buyers of resale flats has been dropping over the years? isn't that illogical since flat prices have been increasing? i do agree that the subsidy for first time S'porean buyers should be increased. to bring it further, new flats should be priced cheaper for 1st time buyers.

 

i think another thing which is long long long overdue is the income ceiling for new flats. the $8K ceiling has around for donkey yrs and prices have risen so much but the cap remains. on hindsight, if the cap is raised, the demand for HDB new flats will be even higher -> higher HDB prices then? LPPL situation....

 

HDB is one huge slow elephant and our dear minister mah needs to wake up and be more pro-active in steering public housing policies. need to proactive rather than reactive. those in Tampines GRC, pls vote wisely hor!

[Scoots]

if i recall, the subsidy for 1st time buyers of resale flats has been dropping over the years? isn't that illogical since flat prices have been increasing? i do agree that the subsidy for first time S'porean buyers should be increased. to bring it further, new flats should be priced cheaper for 1st time buyers.

 

i think another thing which is long long long overdue is the income ceiling for new flats. the $8K ceiling has around for donkey yrs and prices have risen so much but the cap remains. on hindsight, if the cap is raised, the demand for HDB new flats will be even higher -> higher HDB prices then? LPPL situation....

 

HDB is one huge slow elephant and our dear minister mah needs to wake up and be more pro-active in steering public housing policies. need to proactive rather than reactive. those in Tampines GRC, pls vote wisely hor!

 

Totally agree with you on that.

 

New public house that was supposed to be affordable is getting less and less affordable!

 

That $8K ceiling is also so outdated. It's as old as LKY (literally)

 

In the past, it's pretty much a single income household. As the $$$ is so much bigger then. A person earning $8K a month back then is REALLY able to afford things.

 

Nowadays family income is mainly from dual income. And at dual income in today's terms, $8K isn't exactly that comfortable at all. Does the government really think that a combined $8K monthly salary can allow the couple to buy a private housing at today's prices?

 

Bottomline: make public housing decently affordable such that all who NEED a home can afford one. Those who PREFER choice locations, pay (hopefully, within their means).

Edited January 31, 2010 by Scoots

[Austinios]

my take. new flats only for citizens. prices of new flats should be affordable and not pegged to resale price. resale flats, free market, for people who own the sky and can pay with their sky. for anti-speculative purpose, resale hdb should also apply the no resale no rental for 5yrs after purchasing. a similar approach can be applied to private residential property. but perhaps a 20% of the units within the same private development is free of restrictions for foreign ownership only, and understandably may be priced differently. we do not want a polarization of property ownership that only sg live in hdb while foreigners live in private.

[Leo72]

Totally agree with you on that.

 

New public house that was supposed to be affordable is getting less and less affordable!

 

That $8K ceiling is also so outdated. It's as old as LKY (literally)

 

In the past, it's pretty much a single income household. As the $$$ is so much bigger then. A person earning $8K a month back then is REALLY able to afford things.

 

Nowadays family income is mainly from dual income. And at dual income in today's terms, $8K isn't exactly that comfortable at all. Does the government really think that a combined $8K monthly salary can allow the couple to buy a private housing at today's prices?

 

Bottomline: make public housing decently affordable such that all who NEED a home can afford one. Those who PREFER choice locations, pay (hopefully, within their means).

 

What's the price of a 88 sqft 4-room HDB new flat from HDB direct? It's 350K SGD. 1 million SGD HDB flat from HDB will not be too far away.

[Saag]

they sure can control or curb HDB rising price, depend whether they are determined, sincere, want to do it.

If they don't want to, don't waste time, lip service only, such not sincere people will just fail in time to come.

[Jeleburacer]

Resale market is to maintain the value of brand new unit,

if failed could be result all new unit facing serious lost. (sand, steel materials has gone up)

To those who own unit in Bukit Merah, Marina, I don`t think they will post any

comment here. Last year it hit S$700k~ record.....

 

Do anybody engage their own valuer for HDB?

[Louisckp]

My opinion is:

 

1. Only citizens should be allowed to buy direct from HDB.

2. HDB's prices should be much much lower (ie REALLY sibsidized and not market rate less discount)

3. HDB to build enough for citizens, such that citizens do have the option of getting from HDB in a reasonable amount of time. Thing to note is: We also have to discount the complains by citizens about location

too far, not good, too much sun, no sea view .... such people's unrealistic reasons for rejecting new HDB flat's is basically they cannot find the "best-est" cheap public housing

 

PRs shouldn't be allowed to buy from HDB. As it is, getting PR-ship is so easy. If they are allowed to buy from HDB direct, the prices may stabilise as you say, but it's definitely going to stabalise at the much higher values. (demand pool increase, supply pool not keeping pace)

 

all i can say is damm easy to be PR or citizen, cheap too compared to other country

[Joseph22]

Item 1. isn't exactly happening ...

 

it is. The only time when item 1 is not happening is during 2005/2006 when no one is willing to buy the flat near kian teck (cause near FW hostel). and its only happen one time. Tell me now can PR buy direct from HDB?

[Joseph22]

BTO is one of the privileges offered by SG govt to SGeans.

If BTO is also offer to PRs, I think we are with no different.

 

PRs only eligible to buy resale HDB flats.

However, when time passed, PRs can also earn profits with the uptrend pricing.

This is silly.

 

Anyway, some will not wait for BTO cause it will take years for completion.

End up, some will still compete with the PRs for resales.

 

I would suggest, SG govt to show two price tags.

For example, SGeans $300k valuation and PRs $400k valuation.

This will make SGeans more to be the homelander and being protected.

 

Anyway, OOT.

Couple with >$8k and single with >$3k are unable to get HDB loan and grants.

This is already a wrong move.

SG govt should revise the salary mark...~

 

 

Personally for couple with >8K is very reasonable. But for Single >3K we need to revise up.

8K for couple with no children is alot of money. if you up the 8K, this will mean that they can actually pay off their flat with CPF in one short. Which mean they do not need to be subsidisy. Period.

[Zyrofillica]

hmm, anyone who live in HK public flat would like to come in and give some comments? Its quite an eye opener to know about the size and price of their flats. im still glad we have not reach their standards, but i fear it will come soon.

[Darryn]

Actually if really want to solve the "problem" is quite easy - just peg the price of flats to inflation. So never any profit from buy / sell HDB - is just interest cost which is a cost of having a house to live in.

[Joseph22]

Actually if really want to solve the "problem" is quite easy - just peg the price of flats to inflation. So never any profit from buy / sell HDB - is just interest cost which is a cost of having a house to live in.

 

it will not solve the problem still. Cause singaporean salary dont peg to inflation. Salary of a average singaporean is always lower than Inflation.

[Scoots]

it is. The only time when item 1 is not happening is during 2005/2006 when no one is willing to buy the flat near kian teck (cause near FW hostel). and its only happen one time. Tell me now can PR buy direct from HDB?

 

Oops... I replied too quick. I was referring to 2.

[Ladykillerz]

Personally for couple with >8K is very reasonable. But for Single >3K we need to revise up.

8K for couple with no children is alot of money. if you up the 8K, this will mean that they can actually pay off their flat with CPF in one short. Which mean they do not need to be subsidisy. Period.

 

Frankly speaking my friend, $8k cap for couple is not reasonable..

There are plenty out there combined income easily > $8k.

Just throw one stone, there is one couple standing right beside you.~

 

For like couples of $8k ~ $12k, get private property is too taxing for them.

Want to get HDB, must get bank loan. Even more taxing..~

 

Personally, I think $8k cap should adjust accordingly, same to single cap.