The HDB resale price index has surged relentlessly since 2007. Since the first quarter of 2007, the index has increased 35.3 per cent and is now at a record high, even though the economy is still recovering from downturn.This is an anomaly the Government should examine.
Chew Kim Cheer, Straits Times forum page
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no bubble right?
like Jack Neo’s movie, “Where Got Ghost?”.
this wan is, “Where Got Bubble?”…?
CASH UPFRONT DOUBLES
20 August 2009. Straits Time
THE amount of cash needed upfront to buy an HDB flat resale roughly doubled last month as the exuberant sentiment in the private homes market spilled over into public housing.
Three property agencies told The Straits Times that the median cash-over-valuation, or COV, has shot up across all flat types and has gone above $10,000 for some units.
COV is cash that buyers pay to a seller over and above a flat’s market valuation. It cannot be covered by a mortgage or CPF money, and so serves as an indicator of flat affordability.
What is surprising is the speed at which it doubled in a month, said Mr Colin Tan, Chesterton Suntec International’s research and consultancy director.
Figures from the Housing Board (HDB) for the April to June quarter showed that median COV was zero for five-room and executive flats. But data from PropNex, ERA Asia Pacific and C&H Realty for last month showed that this now ranged from $5,000 to $13,000.
The three agencies have a share of about 70 per cent of the HDB resale market between them.
There was a similar surge for three- and four-room flat types: HDB data put median COV at $5,000 in the second quarter, but the agencies said it rose to the region of $10,000 to $15,000 last month.
Based on ERA’s sales, the median COV for three-room units rose from $6,000 in the second quarter to $14,000 last month. The median COV is a mid-point: Half the units were sold for a COV above that value, and half below.
Industry observers say that the COV rise was inevitable given that the optimism in the private market was bound to spread to HDB flats.
HDB flat prices have staged a surprising comeback amid the recession, reversing a first-quarter dip of 0.8 per cent to rise 1.4 per cent in the second quarter and reach a historical high.
Work till 50 plus just to pay the house and then sell it for basic retirement or to work till ‘mati’.
To maintain high hdb prices, evaluation of old hdbs are kept very high. In the worst of recessions, how can this be true? And also mbt strategically said there was over supply of flats and he curbed the supply for last 2 years. but every launch, there was 2X or 3X applications, how can this be true?
Now I have newly wed friends trying to get a resale but find it near impossible as they are asking $50,000 above evaluation (cash). They cant afford new ones as they are priced about $400,000 and above.
Anyway, HDB high prices is a good way of recouping losses from GIC/MAS/Temasek and ensuring CPF accounts are depleted.
lol…the gahmen needs more cashflow..and where does the best cashflow come from? From our cpf monnies lor..and where do our cpf monnies go to housing. Can’t be simpler than that. Anyway, I strongly feel if they don’t mind if a 3-room to go for sale at 1 million too.
It’s a repeat of the HDB mini-boom that happened when the Hongkies surged in pre-1997. This time around, it’s PRC Ah Tiongs, India Indians and white trash.
Ask the valuer lah ?? HDB controls the price, who else, suka suka one, poor people will always be poor, HDB took over SIT and become a profit organisation, where got subsidised poor people, nonsense. Now rich people stay in hdb.
we all know that one of the reasons for the rise in property prices is led by the HDB pricing. If there is a forthcoming election, the perception will hold that the PAP govt is doing a good job if prices keep rising, because nobody wants to see the prices of their flats dropping. Similarly the recent dropping of the property tax law will be perceived as the govt being receptive to feedback.
I think the crux of the problem is that a lot of the middle class earners, in particular the young couples looking for their first home, are stuck between the $8000 ceiling limit imposed by hdb on direct buyers , and the high price quantum demanded by hdb resellers and condos. The government ought to review the $8000 limit as this has not kept up with the price movement of the flats and inflation in general.
just think again if anyone want to tie the knot and have babies. forget it man
CPF was designed to be a retirement nest egg for Singaporean atleast that was the original intend. Now it has become a private piggy bank for the PAP regime to sell inflated “subsidised” housing to us. It is a corrupt gahment that uses its authority liberally and failed in its responsibilties to provide basic need to all Singaporean. Is this a super effecient gahment that deserve million dollar salary? Economically we perform worst then our beloved corrupt neigbours.We Singaporean had always looked down on our neigbours especially the Malaysian and Indonesian. Guess who is ia laughing now? Thank to the PAP we have the worst performing economy and the highest paid ministers in Asia and the world. Another uniquely Singapore? We could happily do without these acholade.The only solution we have is to vote PAP out for good and retire that old man who had become a liability to the country. He had long past his sell by date and that include the PAP party. It is time to seek change.Spread the word and keep spreading until after the general election. We must not slow down.
Message to SM Goh: Please get your smart-alex ministers to WALK YOUR TALK. Just keep ‘monitoring the situations’ is only TALK NOT WALK). Thank you.
During SM Goh’s time, singles were only allowed to buy 3-room resale flats, reasoning was ‘limited lands in tiny red-dot Singapore’. Now, everybody including the huge influx of PRs and fx talents can also buy any sizes HDB flats… and PM Lee said land is not an issue (can be overcome). So, it’s no longer a land scarce issue, maybe Singapore grown bigger? Here’s my main point: Stop discriminating singles. Singles should be allowed to buy NEW HDB flats too. Solution??… take real action to build more NEW HDB flats and control influx of new citizens. Don’t just TALK, TALK, TALK, but NO REAL EFFECTIVE ACTION IMPLEMENTED. The ball is now on SM Goh’s court. Let see if he’s what he said at Redas’ 50th anniversary gala dinner at the Shangri-La Hotel.