HDB Pricing & Affordability
February 12th, 2023 | 
Author: 
When a friend from PAP camp came to boast to me how PAP has curb HDB resale prices by putting more restrictions on those who had sold their private properties to buy HDB from resale market, I laughed.
I told him that’s not going to solve the problem of high HDB resale prices thus High HDB BTO prices which are hedged to Resale prices because the fundamental problem is basically supply chain problem!
If the pricing of HDB BTO pricing isn’t de-linked from the resale market, we will continue to see the inevitable rising price trend of BTO with PAP trying to play accounting acrobatics to justify it.
The reason is pretty simple. HDB BTO only caters to Singaporeans and these additions to the housing stock only cater to Singapore citizens. However, the demand of HDB resale market consists of an expansion of demand of housing due to singles as well as PRs and New Citizens.
Most New Citizens can’t wait 4 or 5 years for a new HDB BTO flats.
Thus, in totality, there will always be a shortage of housing supply and when there is a mismatch of supply and demand, the price will continue to shoot up.
As long as PAP continues with its expansionary population policy without changes to BTO pricing mechanism, Singaporeans will suffer high HDB prices!
What makes things worse is that PAP are attracting filthy rich families to come to Singapore and they are treating properties as a store of value for their money. Worse still, alot of these families just buy private properties and left them empty! This aggravated the housing shortage problems.
There are people who targeted Singaporeans owning a second private property while having a HDB are really missing the point totally. These are just middle ground people who are trying their best to invest their money. They won’t leave their property empty because they need the cashflow. They will rent it out to foreigners and there is absolutely nothing wrong with their sound financial management.
Goh Meng Seng
Posted in 
So,what do PUBLIC HOUSING ACADEMICIANS think?
Whats their opinion oh such escalated HDB price$?
What do PAP MPs think?
Or,they dont think.
Perhaps,they hope HDB prices shoot even higher so their real estate *portfolio* earns more.
Well,go ask those who need to buy n LIVE in HDB think.
All those who do not need to live in HDB shud just shut up.
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Read this from Mothership pertaining to hdb debate:
“…….Addressing Singapore’s one million existing homeowners, she adds: “Please consider what this might mean to your property value. Also consider, is it fair that by policy design somebody else gets the same flat as you but at a much cheaper price?”
Just wondering, if a MP is a hdb flat owner and he/she makes a decision based on this sentence “somebody else gets the same flat as you but at a much cheaper price”, is it consider conflict of interest?
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When PAP has to say that BTO prices are due to location and popularity is when the big problem arises. Their old nonsense of older estates becoming ghost towns is no longer used if you have noticed. As long as there are good amenities in the older estates there will always be people wanting to live there.
And let’s be frank, you sell your BTOs in non mature estates like Yishun or Tengah for 300k to 400k how long is a couple going to take to pay off the loan PLUS interest accrued? You keep telling people that your subsidies are generous when they aren’t so how will people ever believe you? And your total arrogance at dismissing PSP’s suggestions for the housing issue is yet another instance of why fewer are voting for you.
When you are so arrogant and so wrapped up in your own delusional world believing all is fine is when things start going against you. Remember, they didn’t expect to lose Aljunied because they thought it was just the usual noise making and the majority would still vote for them. We all know what happened.
This BTO issue will never be resolved as long as PAP are in charge. Same goes for jobs, foreigners and the cost of living.
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The price of a 5-room HDB flat was $30,000/- in the 70s. Got count land costs?
Today it is $500,000/-.
What is the % of increase.
Pay got increase same %?
Maybe for the miniSTIRs!
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Recently, I had a long coffeeshop conversation recently on this exact same topic, and our bleak conclusion is that next generation of Sinkies sure “die Kork stand”. LOL.
There is NO easy way out of this “House DumbDumbs in Blocks” (H-D-B) pyramid scheme, that has been ongoing for at least past 6 decades in Sinkiepore. If HDB prices collapse, C-P-F oso wiped out, bank loans all go belly-up, banks oso in trouble and Sinkiepore economy sure die since property market is one of our economy’s bulwark.
Pay increments will NEVER catchup to House price inflation.
Sinkie salaries oso stagnate. In fact, the average employee salaries has flatlined for a couple of years already. I foresee with the global trade wars & geo-political instabilities impacting our highly foreign-trade dependent economy, the future average starting salaries of Sinkie graduates may even drop? Yes?/No? LOL.
Our H-D-B may have started off with good intentions, but our housing market during that “MarBok Tan” era has morphed into a pyramid scheme because PAPies needs prices to keep escalating so as to “pay off” the earlier tier of “investors” (i.e. H-D-B Lessees now retiring. LOL)
If prices does not rise, then earlier generation cannot “cash out” and be happy enough to give “PAPies Strong Mandate” mah? yes?/no? LOL.
Therefore, PAPies will ensure:
1) enough continuing DEMAND for H-D-B, which is quite EASY for a tiny Little Red Dot to manipulate – just rubber-stamp LARGE imports of FTs/”New Shytizens” since world population is so large compared to tiny island.
AND
2) raise gahmen land sale prices islandwide, which continuously pushes up Selling prices whether its private condos or for (House Dumbsdumbs in Blocks). Thus, forcing UP all surrounding re-sales prices too, since all Sinkies oso want to ride on the gravy train. LOL.
During our discussions, only big question mark is WHEN the whole pyramid COLLAPSE. Some of my friends say another 40 years – roughly when 99yrs lease runs out for LARGE batch of flats.
Others say might be earlier, within 20 years because salaries simply CANNOT catch-up, meaning prices of H-D-Bs will become “ridiculous” like say a 5-room flat = $2.5 million.
If you do the mathematical CAGR based on inflation of just 5%, its actually not that “ridiculous” looking ahead.
Its the same as when back in 1995, everyone will say you “Crazy” if you predicted HDB will hit $1 million in 2015 (‘only’ 20yrs later) Yes? LOL.
Either way, Sinkies are DAMNed if it keeps going UP & damned too if it Collapses. LPPL, PLLP. LOL.
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HDB price need to go down to make it real affordable and leave enough cash for a reasonable quality of life retirements in future.
If not solve,it will likely be the last straw that will break the camel back for those badly affected,especially with the poor economic outlook and many in the private sector has been badly affected by the last 3 Covid years…
Better not to take for granted that the ground is always sweet…
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Besides the useless liars, those politicians seriously serving the citizens well by asking relevant questions in parliament, in my opinion, is the late JBJ and current NCMP Mr Leong…….
Of course the HDB policy requires reset and PSP is right that some will be unhappy……so be it, they deserved it. They only think for themselves in the past but never for their future generations…..kpkb for what.
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When they run out of defence, they ask “it is fair.”
In principle and in fact, the flats will not be the same. One owner gets the usual price upon resale. The other owner sells for the same price but must pay a very big proportion to gov. According to that proposal, the owner is likely to get only 30% of the sale price, depending on year of sale.
PAP is not fair to the proposal, in asking half-truth questions.
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Only gov.give out money is the only
Good policy.but also the money belongs to the people paying get,4-d
Toto,coe,high rental, high HDB ,etc..
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Of course there must be reset.
The government can start compensating everyone with an apartment the difference between the market value and the original flat value that was committed. Then reset the values to the number of years back when the flat was first leased. They have all the records, what is so difficult ?
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Ministers/MPs
Touch your hearts.
Is HDB at $1.2M n HDB rental at $6200 pm good governance?
There is total Mismanagement as far as good PUBLIC POLICY is concerned.
Can any rational official disagree?
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After handing over a blank cheque to the incumbent party, it is only fair that The People pay more.
The mandate remains clear.
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THE BOTTOM LINE is jacked up the prices of HDB flats with all sorts of excuses
is to made money of few BILLIONS,WHICH HDB claim losses as it pay for GAGMT LAND.
This money (consisted of land costs,)is not put into annual budget,WHICH THEN CAN HELP IMMENSELY THE COMMON PEOPLE.
IT is paying from one gagmt agency (HDB) to another gagmt agency,but no losses to the PAP GAGMT AT ALL.
Worse still all accounts are not transparent and cannot be divugled to public.
NO TRANSPARENCY AND NO ACCOUNTABILITY BY PAP GAGMT.
WHAT FOR U VOTE FOR A GAGMT AND THIS GAGT DONT BE ACCOUNTABLE TO US.
U GUVE THEM THE POWER YET IN THE END THEY SAY U CANNOT SEE THE ACCOUNTS.
U NEED TO VOTE FOR MORE OPPOSITIONS ,TO WIN A FEW MORE GRC.
THEN WITH MORE OPPOSITION REPRESENTAIVES,VOICING OUT FURIOUSLY IN PARLIAMENT,PAP GAGMT WILL WAKEUP.
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the previous 5 room HDB are much larger than the current 5 room HDB.
pap makes money both ends here. smaller size higher price.
only stupid sinkies vote pap. they deserve the pap clan of S$ thieves.
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So it is NO LONGER 2 BITES of the Cherry! It is simply ONE ROTTING APPLE!
So will SINKIES be BETTER OFF with this ROTTEN APPLE led by OXLEY rise?
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“The political problem of mankind is to combine three things: economic efficiency, social justice and individual liberty… Capitalism (especially the crony type) is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.”
John Maynard Keynes
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me humbly but firmly opines that if NON-SGS are barred from buying HDB IN SECONDARY MARKET,HDB PRICES WILL GRIND LOWER N EVENTUALLY GO LOWER TO MORE RATIONAL LEVELS.
NON-SG BUYERS HAVE ALL THE ADVANTAGE.
IF PRICES ARE HIGH,THEY GORENG TILL IT GOES HIGHER; CAN SELL OR RENT TO *NEW FTs/PRs* who WILL HAVE TO TAKE THE PRICE!
THIS IS A SERIOUS LAP$E OF LAX POLICIES.
DESMOND,SON OF LEE YOCK SUAB,NEEDS TO PAU$E THIS UGLY TREND BEFORE IT GETS EVEN MORE OUT OF HAND!
AND,ARE REAL ESTATE AGENCIES MANIPULATING N HELPING SUCH CRAZY RISES SS WELL BY THEIR MARKETING TACTIC$?
ALL THESE MUST BE STUDIED CAREFULLY.
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And,in line with the G’s aim to have MORE PRs take up SG CITIZENSHIP to augment our REAL(CORE) POPULATION,MAY i suggest the G offer SG CITIZEMSHIP TO ALL PR-HDB-owners of more than 5-10 years.
Should such PR-HDB-OWNERS REFUSE THE OFFER OF SG-CITIZENSHIP FROM THE G,THEY MUST RETURN THEIR HDB TO G AT COST-US,for example or at an acceptable *formula* .
This will go a long way to curtail the rampant out-of-hand SPECULATIVE ENVIRONMENT we now witness in our PIBLIC HOUSING!
LOOK,the G regulates private market so tightly and even though freehold landed properties are less than 6 pct of all housing types,PRs cannot buy such properties?
It seems the G apply more control on 6pct than 85 pct?
Strange right?
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Silicon Valley in U.S.
Concrete Valley in Singapore.
The incumbents make more money from low tech than from high tech industries, especially with the import of cheap foreign labour.
The rapid spread of Covid-19 in the workers dorms during the pandemic exemplified the use of extreme cost cutting measures. All in the pursuit of huge profits reaped from daft citizens who live in these exorbitantly priced rental properties.
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HDB grants for resale flats is to further inflate the HDB balloon.
Imagine –up to $190,000 to buy a 50 year old HDB flat.
Madness???
The so-called ”asset enhancement ” bullshit requires ”HDB grant” perpetual increments to inflate the HDB balloon-prices.
Why take $190,000 from tax payers to give to another citizen so that the inflated prices continue to balloon.
Who wins.
Those speculators that use public housing as a casino.
500 inspections per month carried out by HDB looking ”seriously” for BTO flats left empty!!!
REPEAT–500 inspections per month!!
Meanwhile the next generation cannot afford to produce babies because they are in 25-year HDB prison—-so give them baby bonus.
Only idiots papigs do not realise they created the problem in the first place.
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