Leong Sze Hian
I REFER to the report, ‘Cool response to smaller HDB flats’ (Nov 27), which stated that there were much fewer applications for HDB two- and three-room flats, relative to larger flats.
The reasoning that this was due to more Singaporeans being able to afford larger flats may be flawed.
It may be due to the HDB’s income ceiling policy, which does not allow applicants with a household monthly income of more than $2,000 and $3,000 to buy two- and three-room flats respectively.
What this means is that those who earn more than $3,000 have to buy four-room or bigger units. So it is not just a matter of preference.
With rising new HDB flat prices over the years, many lower-income households may not be able to afford a two- or three-room flat. This may be why there were fewer applications for smaller flats than for larger ones.
The argument that HDB flats are affordable, because most flat owners do not use more than 30 per cent of their income to service their mortgage, may be fundamentally flawed as only those who can afford it will buy flats. Those who cannot may already have given up their flats.
The fact that median and lower incomes have been lagging further behind, relative to HDB prices as a multiple of income, may be the best indicator of affordability.
The statistic that 30,770 HDB loans were in arrears over three months as of September, may be the best indicator of affordability as a 7 per cent arrears rate for total HDB loan mortgages is a very high figure – meaning about one in 14 cannot pay.
What this figure and the low ’1,350 HDB flats repossessed’ statistic may reflect, is that most in default would have sold in the open market at valuation plus cash-over-valuation to avoid HDB compulsory acquisition at only 90 per cent of valuation.
Those who are forced to sell would disappear from the ‘in arrears’ and not be reflected in the foreclosure statistics.
Finally, why are there no statistics on HDB bank loans in arrears and foreclosures?
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The above letter was published in the Straits Times’ Forum Page on 7 Dec 2009.
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49) Kimong
My dear friend. MIW told us that.
If you look at the whole post, you will understand that i am actually standing on your side….
Never believe anything that those MIW said, they are all big time liars and all they do to answer you with lots of twisted facts to confuse you, get it?
#12
Japan is a lot larger than just Tokyo or Osaka.
I was there last week and i asked a local abt property prices:
Bungalow in countryside (1 hr from city) nice scenery, big land. just quiet. good for retirees – SGD$200 000.
Bungalow in suburb (20-30 min) from city, medium land/small garden but still a nice 2 story house, can access city for jobs, entertainment, university etc – SGD 400 000.
my Jap friend almost fainted when i told him a Govt HDB flat at TPY 5 rm can cost as high as SGD580k. my wife is a property agent and thats what sellers ther are asking for.
in Japan, if u dont want to live in Tokyo or Osaka itself, u can stay in the suburbs. in SG, where can u go to escape the high prices? Pulau Ubin?
And my Bro-in-law lives in HK, and i have friends who live there too, cousins who work there etc. its not true that pple have to ‘take turns’ one sleep and one walk. thats rubbish. friends of mine who bought a condo right in city paid about SGD600k abt 4 yrs ago. they are middle class pple, hubby n wife both normal grad professional. not super rich, just middle class owning a condo like many here.
In fact, when i first graduated, a HK friend calculated for me, if i work in HK, i can probably save SGD2k even after rental and cost of living. If i work in SG, i save abt $500-700 a month and thats even staying with parents.
Also Jap expats tell me that living in SG is more expensive than tokyo. they rather shop in tokyo than Singapore. or for that matter, go to HK than shop in SG if they want to tour.
cost of housing in HK n Jap may seem high but their salaries are high too. so SG is definitely not better than Japan or HK.
all indicatiions point that its getting worst.
1. HK vs SG FT policy. Are they the same? How many new citizens is HK having or gonna have compare with SG? How many Residents? Do they use resident statistics where statistic about eg. citizen employment rate is not clearly given?
2. HK vs SG salaries. Which is more?
3. Does HK have CPF where money is withdrawn a little at a time only even if reach 65? Is employer CPF contribution a part of labor cost to the employer?
A TV program showed an interview with a Belgium tourist shopping at orchard and she was asked if things there were cheap. She said yes compared to begium. Why compare singapore with Belgium? The standard of living are different. why compare apple with banana?
Why not compare orchard road price with Taipei price?
> PAP say: Pay Peanuts, and you will get Corrupt Monkeys!
S’poreans say: Pay Big Bananas, but still get Incompetent Chimpanzees !!!
> LKY say: Without million-dollar salaries, Singapore will sink into nothingness and your women will become maids!
S’poreans say: We should hire a Queen’s Counsel to sue him for defaming all the women in our lives i.e. our grandmother, mother, aunties, sisters, wife, daughters, female cousins, nieces !!!
> IN A NUTSHELL,
Singapore is a Little Red Dot island run by…
… self-proclaimed “First-World” Obscenely-Paid Muddle-headed Million Dollar Ministers and…
… self-proclaimed “First-Class” Over-Paid Bird-Brained Bureaucrats…
as well as a country of…
… obscenely-priced “pigeon-holes” [1000sf private condos] and…
… over-priced “bee-hives” [less than 1000sf HDB flats].
singaporeans able to afford larger flats?
Of course!
Look at these singaporeans who bought $6,500,000.00 and $4,600,000.00 worth of properties respectively.
I am sure there is a good chance more have done it.
check this out! Report orignated from business times, 8 dec 2009.
http://www.temasekreview.com/2009/12/09/pap-mp-and-mcys-perm-sec-bought-units-at-luxury-condo-marina-bay-suites/comment-page-1/#comment-46813
Hong Kah GRC residents are blessed to have such a talent to sacrifice for them.
sacrifice like time lor.
Finally, my dear self-proclaim, self-adsorbed, self-indulgent “FTs on dec 08, 2009, 12.12pm”, because I doubt you are really a FT–(just doubt only, it is not a personal attack, ok), just to share with you, a small-fly can fly, a small-fry can not fly, do you understand, my sweet-hear? As the great leader of china mr. deng mentioned before, if prc is to open its door to others elsewhere, it has to expect flies will infiltrate/fly-in to this “gigantic-holy-recluse/”hermitic”-land!
With the relentless and profuse “flying in” of FTs, steadfast Singaporeans liken to me, a small-fly, has “no other choice” but to “fly away”! By the way, I created the word, “hermitic”, myself, in-case you do not understand creativity and innovation, so, it is so hilarious and funny of you!!!! To me, you are just a hubris and nothing else!!!!!
I feel so helpless as a citizen stuck in this city.
more good years?
in the 1990s, we have stopped building 2rm and 3rm flats. Cos we r much happier in the 90s and is can earn a decent living.
But look, what happens now? HDB is building studio , 2rm and 3rm flats now. The question is why?
It because we cant afford bigger flats not because we r opting for bigger flats. Shame on HDB for lying about figures again!
Why dont u compare to the 90s when we have 0 studio , 2rm and 3rm flats?
A 3rm flat costs the price of a small condo now in the 90s and except for the PAP guys, income have no risen…Zzzzz….shameful!
I wondered how many ministers and MP are PR of other countries, with properties overseas now? They sounds like they r buzy making money than improving the general wealth of the population, judging by the taxes every few months.
Highest paid in the world and you cant even govern a small city well, leaving 1/10 of the population in dire straits and 1/2 of the population increasing unhappy and the elites have no loyalty towards Sg and her population.
I don’t know the statistics for this, but I can afford a larger flat, or even a condo, perhaps. But I don’t want to. I want to have plenty of cash left over for other stuff.
Can i say that there CAN NEVER EVER be a property bubble burst? Never as in Ever?
@60 Philip
We dont know HDB statistics for sure, it all cooked up. But my statistics come from the Straits Times. 1 in 10 or 100,000 out of 1.1mil families are earning <1000 a month. Multipler it by x2 or x3, since a family consists of a pair or children. Some families, you know have 3 or 4 children too. But we can take x3 as an indication.
So we have 300,000 poor. Note that PR are included in the survey but in order to be a PR, u need more than the average poor for sure.
Now consider that we have 199,000 contact workers who do not have a permanent jobs in Sg….u can really see the sorry state of the poor.
I remember when Sg began to invite foreigners ministries to take our MRT, he was appalled by the sight of the dirty HDB flats and he thought of a scheme to upgrade the flats for those flats that are near the MRT, at a price of cos. But it actually a means to save his own face but the people ended up footing the so call 'Heavy Subsidy Prices' instead of paying it for free. Since it is for the outlook of Singapore, shouldn't the Gov pays it instead?
Hell No! They even taichi it to the people to foot the bills, killing two birds at a stone and then they used it as a means to threaten voters to get this upgrading because if their flats upgrade, the price of their HDB will increase, but of cos the price is set by HDB. Now, that is killing three birds at a stone.
The average poor had their money all squeezed by this sucky gov. And they are too sad to care.
Only we, the middle class must debate for them because, either we become uncaring or have a heart, because the minute we stop fighting for our fellow citizens, we lose our humanity too, and join the ranks of PAP, as money grabbing, selfish people.
Let us hope, we do not lose our hearts to these beasts who I dare to will, did not consider the well being of the people. Did they protest when their salary increased by 300% over the past 10 years?
Back in 1990, our Minister pay is only 300k, and now we is 1000%. Who bears the burden of these taxes? They can say they raise GST to help the poor but the poor become poorer becos of the GST and instead, they use the GST to fuel their salaries.
Our national budget increased from 40B to 60B last year. And they did not give an account for it. In fact 30B was unaccounted for.
Even our politician money cannot be declared under the law. Is this the gov that people with a good heart wants?
#62,
i will vote for change. thats mean get them out.
A friend of mine moved to JB 2 weeks ago, near the second link but still works in Spore in his own business! He does not drive but take the City Link bus from JB to Jurong East. Renting a house in a new development with security for Sing 600 plus but gets a rental return from his condo here, sold his HDB, no point keeping and moved lock, stock and barrel there, quality of life is better, cheaper to live. Good luck to Singaporeans.
someone said ShenZhen grad earns about SGD400-500…
how come our Papa earn million? you know how much Obama earns? you know how much is PRC top guns salary?
Have very much less FTs, very much lower Papa salary then many things will become cheap…