Posts Tagged ‘affordable housing’

Let Singles buy HDB

Thursday, September 3rd, 2009

I chanced upon this forum thread created in response to the article “Let single daughter buy HDB“.

Here are some of the views shared:

HDB supply is limited in Singapore (land is limited too?). If age limit of singles scheme is lowered (currently 35), the increase in demand will lead to an increase in property prices. People who really need to buy a flat can’t will have trouble affording one.

– HDB supply is limited.

Yes, ready HDB supply is limited, but definitely not due to lack of land. It can be attributed to poor planning on the part of HDB. In case one has not noticed, new HDB flats are as high as 40 stories these days, and new BTO projects are being launched quite frequently. However, these new flats will not enter the resale flat supply till 8-10 years later [3-5 years to build, 5 years for MOP (minimum occupation period).]

There was a time when HDB overbuilt, and had thousands of new unsold flats in their inventory. Young newly wed couples could immediately pick a flat from the oversupply and move in, and thus not fight for the limited resale supply.

Now new flats are only launched under the Built-to-Order Scheme (BTO), where only when a certain number of units are booked does building commence. This is to prevent oversupply, and also helps to boost resale prices, and at new flat prices at the same time, as new flat prices are pegged to resale prices.

– Allowing younger singles to buy will lead to increase in demand, and increase in prices.

Throughout this recession, HDB prices have not dipped at all. Whether younger singles are allowed to buy or not will not change this fact.

But why do prices keep going up? This is because of the large number of new citizens and PRs we welcome each year. In 2009, new citizens alone accounted for 3600 people! Right now, it’s still cheaper to service a HDB mortgage (approx $1.2k for a 4-5roomer) than to rent a flat each month ($2k-$2.5k). Thus, eligible new citizens and PR families will purchase a resale HDB flat if they can afford the down payment.

Welcoming more new citizens and PRs is something which isn’t going to change. It boils down once again to the lack of supply, which points back to HDB’s planning again.

Abolish HDB. It has outlived its purpose since sg has moved into first world league. Singaporeans should be left on their own to find their houses just like people in other first world countries. The Gov does NOT owe them a housing. Stop pampering to Singaporeans!


Some property related articles

Thursday, December 25th, 2008

Merry Christmas to all of you! Thank you for faithfully following Singapore Watch through the years, even though I haven’t been consistently updating. My hope for the year to come is to update this site more!

Happy Holidays!

HDB slowly returning to it’s roots: providing affordable housing.
24th December 2008

Default rates are up, and ministers argue it’s because HDB owners are over-committing, buying bigger flats than they should. Perhaps HDB has finally realized that there aren’t enough smaller flats to go around in the first place, which is why they are finally releasing more smaller flats.

The Statistics (Nov 2008)

Price of 2-room Yishun flat sold: No transactions*
Price of 3-room Yishun flat sold: 99 units ranging fr $153k-$300k
Price of 4-room Yishun flat sold: 127 units ranging fr $185k-$350k
* There have not been any transactions in more than 5 years.

Read More …

HDB Defaults – Good or bad News?
23th December 2008

This isn’t new news, but just thought I’ll log it down here. Imagine this: the whole subprime mess in the US has led to a default rate of about 9+% as of August 2008. This is already considered catastrophic!

Singapore has a default rate of 8% for HDB, public housing that are meant to be highly affordable. And the recession has just started in Singapore. This means that the default rate will rise even further.

Read More …

The Almost Complete Goondu’s Guide to Buying a HDB Flat in Singapore (Part 1)

Chapter 1: The Consideration Phase

Housing Development Board (HDB) was created with the intention of making housing affordable for Singaporeans and Permanent Residents. As such, there are many rules and restrictions which you have to qualify before you can purchase a HDB flat.

Before you embark on one of the priciest purchases of your life, there are some things you need to take note of:

1) Fulfilling the criteria for a Flat.
2) How much should your house cost?
3) Location
4) Timing
5) Size
6) Type

Read More