HDB Resale Crashed Nearly 20% After NDP Rally

Following Lee Hsien Loong’s confirmation that HDB housing will be worthless by the end of lease, the resale transactions of HDB resale flats responded with a reduction of 18.6% in the month of August. Only 2,076 units were sold in August, as compared to 2,550 units in July. According to some real estate agents, many potential HDB resale flat buyers pulled out from purchase on the last week of August following Lee Hsien Loong’s speech on Aug 21. The effect is expected to worsen in September as the first week saw similar disastrous sales reports.

The end of lease issue has hit many elderly Singaporeans hard, as many are relying on the sale of their decades-old home for retirement. Due to insufficiency of CPF payouts – that reach as low as S$100 a month for housewives and those who barely contributed to CPF, Singaporean retirees are heavily reliant on their sole asset for living maintenance. Elderly Singaporeans can be frequently seen working in low income manual labour jobs or half-begging selling tissue paper on the streets for a meal.

According to propaganda state media Straits Times, the ruling party will meet today (Sep 10) to discuss the depreciating value of HDB and the expected return of VERS (a watered-down version of en bloc sale SERS). PAP MPs in recent weeks have been heavily criticised by their own party supporters and grassroots leaders, with many demanding for the government to reverse its stance on HDB housing’s depreciation. Most Singaporeans are deeply aggrieved by the loss of inheritance wealth, and are now more vocal hitting out at the ruling party for stealing inter-generational wealth.

Desperately needing more CPF funds to fill GIC’s overseas investment losses, dictator Prime Minister Lee warned Singaporeans that they have been told at the time of purchase that they own only the lease of a HDB unit and that even with VERS, they will not be compensated market value. Lee Hsien Loong openly admitted that he needed more land to build new HDB flats for younger generations to buy in a 30-year mortgage.

The HDB lease issue has been damaging to the ruling party, and it is a fresh new wound after the 28% increase in GST and 30% in water price. Singaporeans saw their cost of living increasing by some 10% in the past year, following double digits increase in utility tariffs, carpark charges, public transport fares, airport taxes, mandatory CPF insurance premiums and a new mandatory CPF insurance called CareShield Life.

Despite the Prime Minister’s promising that the slew of tax increases would help the poor more, the reality is a reverse. According to official statistics, the number of poor on public assistance jumped 28% over the past 4 years, with elderly retirees being the most affected.

Alex

$918k for a HDB apartment in Pasir Ris?

$100k-plus cash premiums offered for Tampines flat
By property_guru

Following our breaking story on the asking price of $900,000 for an executive apartment in Pasir Ris, PropertyGuru received an exclusive tip-off from a property agent representing Knight Frank.

The agent, who only wants to be identified as Ravin, said he sold an executive mansionette flat at Block 151 Tampines Street 12 in March this year for $772,500.
According to the valuation report, the flat had a market value of $625,000 in December last year.

It was sold above valuation at $147,500 in March this year. "We were marketing this property over two Sundays and had about 50 plus buyers come for the viewing. Almost half were able to offer COV of more than $100,000," said Ravin.

According to Ravin, the profiles of the potential buyers were Singaporeans in their late 30s to late 50s.

About five were able to offer a COV of more than $125,000.

"These buyers had the cash as most had sold off their landed property, private apartments, or HDB flats with good profits. Most were business owners," said Ravin.
Record COV?

Despite the high COV the mansionette achieved, it will soon be overshadowed by the executive apartment in Pasir Ris should it be able to command the asking price of $900,000, which had shot up to $918,000 after the story broke.

Taking recent transactions as a benchmark valuation price in Pasir Ris, executive apartments in the area are about $600,000.

The new asking price of $918,000 will translate to a record COV of $318,000.
COVs unlikely to go down

Despite the cooling measures, experts say COVs are unlikely to go down.
"The average COV now is about $30,000 to about $40,000 (or) to $50,000 in better and prime locations. I believe that's because of the demand in the market, which comes from newlyweds as well as new PRs and new immigrants coming to Singapore. Although there's a lot of BTO coming up, COV unfortunately will still be going up in the near future," Mark Teo, senior group division director at ERA was reported as saying to Channel NewsAsia.

Others say the new Build-to-Order announcement will ease pressure from the resale market.

"COV prices are bottoming out at around $21,000 and many first-time buyers will still be priced out of the resale market for this reason. Hence, they will definitely find great relief in this bumper crop of BTO flats," said Adam Tan, PropNex corporate communications manager.

New BTO flats eases pressure from resale market
The new HDB flats wil comprise seven BTO projects spread across five estates, namely Sengkang, Tampines, Jurong West, Bukit Panjang and Yishun.
Most of the flats on offer are four and five-room units priced at $217,000 and $274,000 respectively.

According to HDB, it is on track to deliver 25,000 BTO flats in 2011.
The supply of new flats is expected to ease pressure from the resale market which could see their prices falling in the next six months.

This is partly due to economists' recent revision of weaker economic growth in the second quarter and a 25 percent drop in private property transactions in June.
The Resale Price Index (RPI) was 179.9 points in the second quarter, an increase of 2.9 percent over the first quarter.
-------------------------------------------------------------
Priciest flat in Pasir Ris goes on sale for S$900000

Following Sim Lian Group’s highly controversial Design, Build and Sell Scheme (DBSS) project in Tampines, the Housing and Development Board (HDB) is once again under fire after an eye-popping listing was posted on PropertyGuru.

The listing shows a 1,528 sq ft HDB executive flat in Block 780, Pasir Ris Street 71, with a selling price of S$900,000.

The unit’s asking price is higher than the average selling price in the area, considering that it is a public housing project situated in a non-prime area and has no facilities.

It is also not within walking distance to White Sands mall or Pasir Ris MRT station.

Roza Sure Bagus, Managing Director of Sure Bagus (Asia) Pte Ltd, said, “The asking price of S$900,000 is definitely way beyond the market price. It is certainly a one-off case which if the agent is able to get, it will be a record price for Pasir Ris.”

Roza sold a flat in Pasir Ris recently for S$696,000, which is S$96,000 above valuation.

“The S$96,000 (in) above valuation is still okay, provided the house has a good view, high floor and good interior. Nevertheless, if they are buying at S$96,000 above valuation, the buyer’s taste in the décor may not be the same. They may renovate everything.”

Caveat data reveals that the average psf pricing of similar properties sold in the area this year is between S$400 psf and S$500 psf.

The asking price for the executive flat translates to S$589.01 psf, which is well above the market price.

However, Roza believes there might still be a willing buyer.

“For a person who buys such a flat, he might buy it for sentimental value. Perhaps, it has a breathtaking view which he may not be able to get elsewhere.”

“The buyers are likely to be from the private property market who have already sold their properties or who were en bloc owners who made a huge profit. It is unlikely they will take any loan. They would buy this unit in cash, full settlement,” said Roza.

HDB Flats - Still Affordable

Would be interesting to hear from Mah Bow Tan regarding the latest increases in HDB prices. Are they still affordable?

The prices of HDB rose by 4.1% in the 2nd quarter (April - June) of this year. This rise is also mirrored in private properties which rose more than 5% in each of the last 2 quarters of this year - that is a whopping rise of more than 10% in 6 months. There are many negatives associate with the increase in property prices. Property prices rising much faster than income means that ordinary Singaporeans have to take up more debt for housing. The price rise also worsens the effect Singapore's income gap which is already the highest among developed countries - middle and lower income families have to purchase smaller homes and are unable to upgrade while wealthier Singaporeans more than 1 property can enjoy the wealth effect of higher prices by selling at these lofty prices.

Things are not going to get better with another 100,000 extra foreign workers that PM Lee said will be here in the coming months. They too will need housing and that will worsen the situation. In the recent BTO for Ponggol Waterway Terraces, the number of applicants was 18 times the units on offer. We have a very hot market set to get hotter in the coming months unless HDB does something to meet the demand. One can argue whether we are in a bubble or not. Bubbles are obvious only on hindsight. However, price rise that is so much faster than income growth means that the debt burden for ordinary Singaporeans buying homes has increased rapidly in the past few quarters. For an economy that depends on workers to be faster, better and cheaper, rising debt burdens and increase in cost of living will undermine their ability to save, cause their living standard and quality of life to fall and lower their ability to start a family and have children. The govt is asking workers to be cheaper while it does little to arrest the risning cost of housing.

Last week NMP Viswa Sadasivan urged the govt not to focus solely on GDP growth and use other economic indicators that measure the general well being of the ordinary Singaporean. I would go even further than that by saying that the high GDP growth is negatively correlated with improvement in quality of life for a large segment of the population. For many Singaporeans, the GDP growth in recent years simply translate to increase cost of living without the correspondng rise in wages. It has to do with the way the PAP govt generate such high growth by importing foreign labor. When the economy grows, you see headlines like the on today's Straits Times "Resale HDB Prices hit new highs" but you won't see headlines like "Wages of Singaporeans go up by 5% last quarter". ...as property prices, transport costs, utility rates, conservancy charges rise to negate any economic benefit of growth.

HDB dwellers beware - your phones are tapped

From: Maximillian Caugilia
Subject: HDB Dwellers, Beware of Sedition Act being used against you!

No, not because you have just received the famous flyer ( shown at
http://i43.tinypic.com/lfs40.jpg ) stuffed into your mail boxes which
you "somehow forgot" to conveniently throw it way in a rubbish bin
next to the mail boxes, and "mistakenly" brought it into your pigeon
hole apartment.

It is because at every HBD block, there is a special secret room that
all telecommunication wires will have to route through some high tech
electronic devices that can be activated by teckkies from the ISD to
tap on and identify key words spoken through your home telephones. In
a state of emergency or whenever there is deemed to be one as
determined by the Minister of Home Affairs, this system can be
activated to record and track down HDB apartment units that have
originated or have received phone calls with audible pre-programmed
key words.

Such is the state of control and electronic monitoring that the PAP is
capable of doing right now.

There is no absolute privacy in Singapore anymore. If you have
something to say against the government, especially during the
election period, avoid using your home phones.

Slave to the HDB flat

From: "AleXX"
Subject: Slave to the HDB flat
Imagine buying an HDB pigeon hole for $950,000/- Paying and upfront deposit
of 20% would be $190K. The rest of the $760K shall be on loan. Lets say the
on going rate is 3.5% and taking 35 years to pay. Interest accumulated will
be 122.5% and the final sum payable after the loan period should be $1.691
million. Monthly instalment is around $4,026.00 How many people can afford
to do it?

--------------------------------------

From: "truth"

Average Singaporeans are dead.
They will be priced out of Singapore.
They will become homeless.
--------------------------------------
From: Siansiansian

Some Singaporean is waiting for Singapore Govt to collect their dead
body when they can't afford to pay for the heavy loan.
This is the strategy to adopt as Govt want to save face to ensure
everyone has a roof.

In Hokien is called " see ho yi kuah"
In Mandarine is "Shi Ge Ta Kan"
In English is " jump into MRT track"
---------------------------------------------
Queenstown HDB flat nearly sold for $950,000
Irene Tham
Sun, Apr 04, 2010
The Straits Times

A family in Singapore nearly sold their home in Strathmore Avenue for $950,000 - possibly the highest amount fetched for an HDB flat.

But the deal did not go through.

The buyer could not get a bank loan for the rare penthouse valued at $875,000.

HDB cash downpayment raised to 20% of flat price

HOUSING Board (HDB) flat buyers taking private bank loans for their purchase will now have to fork out more cash for the downpayment on their homes.

The Government has lowered the home loan amount that buyers can borrow from banks from 90 per cent to 80 per cent of the total purchase price.

The new 80 per cent rule, also known as the loan-to-value (LTV) limit, will apply to both private and public flats.

But for those buying HDB flats with HDB loans, the LTV will still remain at 90 per cent.

In a joint statement on Friday, the Ministry of National Development, Ministry of Finance and the Monetary Authority of Singapore said that this is because HDB flats are already subject to other criteria to prevent speculation and encourage financial prudence.

For example, there is a minimum owner occupation period of three to five years and a restriction on ownership to one flat per household.

HDB loans are offered to only eligible first-time flat buyers or second-timers who are upgrading.

Housing analysts said that the new measures would have an impact on the HDB market. Buyers who are not eligible for HDB loans must now fork out a higher downpayment as they can only borrow up to 80 per cent of their home purchase price.

This could depress the amounts of cash upfront paid to the seller above the flat's valuation, known as cash-over-valuation, since buyers are now less likely to have excess cash.

HDB considering imposing a quota on PRs in resale flats

tomiyaki wrote:

finally Sir Lee has spoken, he should have said that earlier...... stop influx of foreigner becoming Singaporean.... but hope his words still stand..., last time he did say ONLY 35% ...but FT exceeded and turn 36% and if the liberal policy of allowing FT turn PR continues, it is going to be very bad....... i respect him and will always be, hope his integrity is intact.... and stop more FT.....good job.....
-------------------------

SINGAPORE: The Housing & Development Board (HDB) is considering imposing a quota on Permanent Residents buying resale HDB flats. This could be done in the same way that racial quotas are imposed to prevent ethnic enclaves.

The issue came up in a dialogue session on public housing with Minister Mentor Lee Kuan Yew where questions on affordability and aspirations were brought up.

Public housing has come a long way from where it started 50 years ago. Still, issues remain. This includes how foreigners are perceived to affect pricing of flats.

Mr Lee said over the next five years, the intake of foreigners will slow down but that meant Singaporeans would have to increase their productivity.

Going further, dialogue moderator Professor Tommy Koh asked if more could be done to integrate those already here, in much the same way that the Ethnic Integration Policy was introduced in 1989 in public housing estates to get races mingling.

MM Lee said: "Could the same approach be adopted towards integrating new Singaporeans? We are not allowing new Singaporeans whether from China, India, Malaysia or whatever to congregate in the same tower blocks which they are already beginning to do. They buy second hand flats and they congregate. So we have a record of how many new citizens living where and we keep their numbers dispersed. It's a very valuable tool of communal harmony."

HDB later clarified that a quota policy on PRs for resale flats was being considered.

One other issue that came up during the dialogue is that of affordability which has come up repeatedly. One suggestion was to have HDB provide more rental housing units.

MM Lee said: 'I completely disagree with that policy. It will lead us into all kinds of problems. You are getting a dependency group - dependent on the government on constant subsidies, whereas our philosophy is ‘I give you this asset, I will increase the value of the asset as the economy grows but it is yours and you look after it. And we do not have run down public housing like other countries which are rental.’”

Mr Lee was also asked for his take on a recent media report that at least three opposition parties were eyeing National Development Minister Mah Bow Tan's ward with the aim of making public housing affordability an election issue.

He explained: “What is affordabilty? From the point of view of the buyer? And the government that is subsidising you? The government has to price it at a level that is fair to the revenue it is collecting and fair to the individual, not only the present buyer but past and future buyers. If Mr Mah is unable to defend himself, he deserves to lose.

“No country in the world has given its citizens and families an asset as valuable as what we have given every family here. And if you say that policy is at fault, you must be daft."

Mr Lee was speaking before some 500 delegates from 20 countries at a housing conference. - CNA/vm

HDB resales flat costs $720K to buy

From: Siansiansian

Subject: HDB resales flat costs $720K to buy - blame it on the Govt

Woould you believe it?
a HDB resales flat costs $720K to buy.
Blame it on Govt's fault to build lesser new HDB flats for the last
few years while they brought in almost 2 millions of PR into
Singapore.

It is either they purposely plan it that way for election year,
or they have been paid millions dollars to make this kind of
calculation miskake, an honest mistake again.

If you need to move house closer to your work place, you simply just
can't afford to do it.

FUuuuuuuuuuk!!

SINGAPORE : Housing analysts said it is a sellers' market right now, with resale flats being a hot commodity lately.

But the Housing and Development Board (HDB) has urged buyers to exercise caution when paying high cash premiums, and to do their homework to determine if a house is truly worth its asking price.

A 4-room flat in Bishan was recently put up for sale. It was valued at S$460,000 by an independent valuer appointed by HDB, and the owners are asking for an additional S$100,000 cash-over-valuation (COV).

The owners, who declined to be named, are a young couple in their 30s who run an F&B business. They claimed to have received three offers so far, but all were rejected.

"The COV is too low. There are those who are asking for S$50,000 to S$60,000. There was one offer which was close, about S$95,000. We are not in urgent need to sell. In a way, it's to test the market. If we sell, we sell. If we don't sell, we will just continue to stay," said the owner of the 4-room flat in Bishan.

Analysts said with a continued strong demand for resale flats, owners are taking advantage of the situation to increasingly ask for higher prices.

Based on the latest HDB figures, 78 per cent of home sales transacted in the third quarter of last year were above valuation. That is a 22 percentage-point jump from the second quarter of last year's figure of 57 per cent.

The median COV is also on the rise - jumping from S$3,000 in the second quarter to S$12,000 in Q3.

With HDB resale flat prices hitting an all-time high, housing agents said most flats now command at least S$20,000 to S$30,000 cash-over-valuation.

Units situated at good locations, close proximity to an MRT station and good renovation can see COV go up to S$50,000 to S$70,000. But there is a limit to how much buyers are willing to pay.

"If it's not to my liking, then I'd have to do up, (renovate) it again. So how much (am I willing to pay)? About S$50 to S$60,000," said one member of the public.

"It's too high for me. Because of my income, I don't think I can afford it," said another.

HDB said only four out of the 13,000 4-room flats sold last year had premiums higher than S$70,000.

Analysts cautioned against jumping into deals that require high cash premiums.

"COV is a premium. Five years down the line, the renovation will deteriorate. And there's no guarantee that you can sell at S$100,000 above the then value. Therefore, buyers should exercise discretion as far as how high you want to pay," said Mohamed Ismail, CEO of PropNex.

HDB said it does not control resale flat prices as they are the result of negotiations between willing buyers and sellers. It added that intervening in COV means forcing people to buy and sell at fixed prices.

HDB also urge buyers to have the relevant information before negotiating with sellers, and to offer a price within their means. - CNA /ls

HDB pigeon holes ....Foreigners driving the price up

From: baldeagle
On Dec 19, 2:00 am, Zanzibar wrote:

> On Dec 16, 11:45 am, "truth" wrote:

> > The 3,4,5 rooms pigeon holes of today are so much more
> > expensive. In addition, they are so much smaller compared
> > to older pigeon holes.
> > Singaporeans are beging ripped off in two direction
> > 1. price
> > 2. floor area.http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Stor...

> In the next few years it will cost even more. This is becasue more and
> more foreigners who got their Marlene Dietrichrs are buying up resale
> HDBs.

> Many of them will bring in their "illegal" money which they earned
> "disportionately" into singapore. Many will qualfied their purchase by
> meeting the minimun income rating.

> But they will bring in their cash to pay up the flat in full, as many
> of them do not qualify for bank loan, given that they don't have
> income tax to prove for a loan of it.

> The majority of these people will be from China ad India. Ha ha ha, as
> a mtter of time, Singaporeans will be "evicted" by them, sooner than
> later, when they sell their flat to them and then downgrading to a
> "cheaper" flat. The "cheaper flat" will have also proportionately
> risen as well to the market pricing of the flat.

> Eventually, Singapore wil "shoot" its foot because of this
> policy...

There are now almost a million foreigners living in Singapore.
When foreigners become citizens and PRs, they can buy or
rent HDB flats. It means...there is a demand for at least 250,000
HDB resale flats (assuming a family of fours stay in one flat),
over the next 5 to10 years.
It means...every year there is a added demand of at least
25,000 flats.

Is the government building 25,000 HDB flats a year ?
No.
When supply cannot meet demand, prices will rise.

For Singaporean who upgrade to condo...it is good
news...as they can sell their HDB at a much higher price.

For young Singaporeans couples (who plan to get married)
and other first time buyers, they will have to pay much
higher prices for their flats...and have to wait much longer.
My neighbour's kid has waited for 4 years...and is still
waiting to buy a flat near Bedok or Tampinese.

Foreigners are driving HDB prices up, take over good
jobs from Singaporeans...

Yes, PM Lee and MM are saying that foreigners are good
for Singapore ! They think that Singaporeans are fools...
They are not honest.

HDB suffers S$2b deficit - and its terrible

Date: Mon, 2 Nov 2009 18:49:50 -0800 (PST)
Local: Tues, Nov 3 2009 10:49 am
Subject: HDB suffers S$2b deficit - and its terrible!

The Housing and Development Board (HDB) has reported a S$2 billion
deficit before government grants in its latest annual report. The
figure is more than double the loss reported in the previous financial
year.

HDB said the huge deficit for the financial year ending March was due
mainly to more flats being sold. These flats are highly subsidised by
the government.

Higher construction costs also led to the large deficit. Other reasons
that contributed to HDB's loss included upgrading works for lifts and
rental flats.

Between April last year and March this year, HDB pushed out 8,000
flats under its Build-To-Order Scheme. That was 2,000 more than what
it supplied the year before.

At a media briefing on its latest annual report, HDB also gave an
update on the Lease Buyback Scheme which allows low-income elderly
Singaporeans to get a portion of cash upfront while HDB buys back the
tail-end of the lease of their flat.

HDB has received more than 400 applications since the scheme was
launched earlier this year. Some 25,000 households are eligible for
the scheme, but the elderly have other options to monetise their
flats.

HDB's CEO, Tay Kim Poh, said: "Some of them will sublet their entire
flat, and the rental for even a three-room flat is very good nowadays.
They can easily get S$1,500 per month from the rental and they (then)
move in to stay with their children."

Despite the global downturn, HDB said the mortgage arrears rate has
dropped 0.4 percentage point to 7.5 per cent.

Market watchers said this may be due to the high resale prices of HDB
flats.

Eugene Lim, associate director of ERA Asia Pacific, said: "There was
an upswing in the market since the beginning of this year. And what
happens is that those households in arrears probably made use of this
opportunity to sell their flat and downgrade to a flat that they can
afford."

Moving forward, HDB said it will focus on improving community
relations. A new department has been set up within the housing board
to look at strengthening social cohesion and integrating newcomers.

Where is the accountability and who is going to cover the bills!?

Selling HDB and renting Condo in JB

Singlion wrote:
I take having a piece of property in Singapore as a hedge against inflated asset prices. It is a form of tax imposed on the citizens. So long as you hold on to passport, there is no way you can have no exposure.

If you all try to sell, your so called asset falls.

I think we must find a balance to "milk" the system.
Depending on your circumstances, a look at our neighbours is not a bad idea as the asean area is the next wave.

Like all things in nature, there is a way to do it. You may agree or not agree and with it the reward and pitfall.

The era of one way up for Singapore is over. The American crisis is not over. It is frightening. It maybe just be the beginning. USD1440trillions of OTC derivatives cannot see the light is still buried in the Shadow Banking system.

So long as there is no innovation in Singapore and with present policy , there is no hope.

In times of change, learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.
–Eric Hoffer – Longshoreman, Philosopher

HDB prices vs starting salary of graduates

From: "truth"
Date: Mon, 12 Oct 2009 03:59:54 GMT
Local: Mon, Oct 12 2009 11:59 am
Subject: HDB prices vs starting salary of graduates

In the 70's a five room HDB cost about $34,000 and graduate
starting salary about $1,000. Ther price of the 5 rooms HDB
pigeon hole is less than 3 years of his annual salary.
Today a five room HDB cost over $500,000 and the starting
salary of graduate is about $3,000 (high end). The price of the
5 rooms HDB pigeon hole is over 13 years of his starting
salary.

It is scary indeed for the youngsters. With a few more
million foreign imports and the price of the 5 rooms pigeon hole
will be well over $1,000,0000.

Young Singaporeans you are dead. The choices are limited.
U either migrate or vote out the papist leegime.

Subsidized "public" HDB housing selling at open market price?

From: "AleXX"
Date: Tue, 6 Oct 2009 22:02:03 +0800
Subject: Subsidized "public" HDB housing selling at open market price?

Singaporeans got screwed by "cheap" - "subsidized" and "market orientated
price" housing from the Papist government. With a population of 5 million on
this tiny red dot island?

The government is fucking their own ass-holes by their own birth control
logo in the early 70s. "The more (foreigners) you have, the lesser you
(citizens) will get."

The only way to at least bring down the price is to use your voting tools.
But, alas!! -- 75% walk-over and 25% "won" by the Papist again !!.... Net
results? Two faithful opposition sitting ducks voted into parliament and one
remained a bankrupt.. :):)

-------------------------------------------------
Where are the cheap HDB flats?

By Fiona Chan

Prices of resale HDB flats hit another all-time high in the third quarter, amid a growing chorus of unhappy buyers complaining that home values are rising out of their reach.

Despite the rising prices and disgruntled home-seekers, pundits say there are still affordable homes to be had - if only buyers are less choosy and look a bit harder.

Where, then, are these cheap flats to be found?

The Sunday Times went in search of resale flats that were recently sold for up to $200,000 - which can comfortably buy a built-to-order three-room flat in new towns such as Punggol.

The good news is that resale flats for below $200,000 definitely exist.

The bad news: Almost all of them are three-room flats or smaller, at least 20 years old and often more than 30, and largely tucked away in the corners of the island such as Woodlands and Jurong West.
Source: HDB

Even then, the number of flats that can be had for a budget of $200,000 appears to be shrinking.

In the third quarter of this year, between July and last month, fewer than 140 three-room flats were sold for $200,000 or lower, compared to more than 220 in the second quarter and more than 280 in the first quarter of this year, according to data from the HDB website.

Four-room flats below $200,000 are virtually impossible to find. Even when you up the budget to $300,000, it is slim pickings.


'In the past, you could easily get some of the four-room flats for below $250,000, whereas now, most are above $300,000,' said Mr Mohamed Ismail, chief executive of real estate agency PropNex.

ERA Asia-Pacific's associate director Eugene Lim illustrated it more starkly: In 2003, $200,000 could have bought a four-room flat in almost any area, including popular towns like Ang Mo Kio, Bedok, Serangoon or Toa Payoh, he said.

This year, $200,000 will get you only a three-room flat in Geylang, Hougang, Jurong West, Kallang, Woodlands or Yishun.

Similarly, a budget of $300,000 would have been sufficient to bag a five-room flat in most towns in 2003, said Mr Lim.

Now, the only five-room flats you can get for that amount are in Jurong West and Woodlands, he said. In mature estates such as Toa Payoh, Marine Parade, Queenstown and Clementi, $300,000 will buy only a three-room flat.

Part of the reason for this is the rising cash-over-valuation (COV) portion, which sellers of in-demand flats can ask for in cash above the property's valuation. For three-room flats in popular areas, this can go up to $50,000, while owners of flats in the outlying areas still ask for at least $10,000 in COV, said Mr Aaron Hong, a senior division director at Dennis Wee Realty.

But even excluding this, the valuations of HDB flats alone have skyrocketed in recent months.

In Tampines, the lowest valuation for a three-room flat is about $210,000 to $220,000, whereas the highest can go up to $290,000, Mr Hong said.

When you throw in the COV amount, which is a must-have in these property boom days, it is easy to see how a three-room resale flat can cross the $300,000 mark.

For the despairing, Mr Ismail has some advice: If your budget is low and you cannot afford to pay high COVs, forget resale and go for build-to-order flats, even if it means waiting a few years.

'The key is to enter the property market first, in whatever way you can,' he said. 'By getting one foot in the door, you can build a foundation and then work towards the home you really want.'

This article was first published in The Straits Times.

Buying a "subsidized" HDB pigeon flat

From: "AleXX"
Date: Sat, 3 Oct 2009 22:31:24 +0800
Local: Sat, Oct 3 2009 10:31 pm
Subject: Buying a "subsidized" HDB pigeon flat

Lets say you are 30 years old and have saved enough for a 20% down payment
for a miserable tiny 4 room flat buying directly from HDB at a government
"subsidized" rate for $250,000. You paid $50,000 upfront and got a loan of
$200,000 from the bank and another $50,000 renovation loan. At 4% interest
rate, and taking up a maximum repayment period of 35 years, the repayment
figure should be $600,000. For every month, rain or shine, whether you are
employed or unemployed; you have to fork out $1,428 for the monthly
installment. What about the money-eating conservancy charges from town
council? Household utility bills? Food? Clothing? Medical bills?
Transportation? Government Taxes and Charges? How much can you afford to
pay?

HDB causing housing bubble

From: "kingkong"
Date: Sat, 3 Oct 2009 21:07:13 +0800
Local: Sat, Oct 3 2009 9:07 pm
Subject: HDB causing housing bubble

Whoa....

This is interesting.....

According to this :
http://www.cato.org/pubs/pas/pa646.pdf

Cato Institute senior fellow and author Randal O'Toole claimed housing
bubble is caused by urban planners, and not due to low interest rates or
cheap loans.

I guess it make a lot of sense because this is how HDB has created a housing
bubble in Singapore by restricting housing supply.

Ironically, by claiming HDB price to be "affordable" for middle income
Singaporean by using HDB grants and cheap loans, they are in fact making HDB
flat more expensive.

Press censorship on HDB issues

andrewpang1966
Posted: Fri Oct 02, 2009 3:59 pm Post subject: David See: Press censorship on HDB issues
--------------------------------------------------------------------------------
By David See Leong Kit

HDB’s response “Why we peg to market rates: HDB” ( TODAY Sept 25) to my earlier letter has necessitated my right of reply. (read letter here)

Instead of merely accusing me of being “misleading and illogical”, HDB is expected to be transparent in disclosing fully the actual breakeven cost of new flats in all its projects. After all, these are public housing developed with public funds.

These exasperasting remarks of a couple wanting to start a family sums up the genuine frustrations of young Singaporeans at the sky-high prices of public housing: “How to live in cheaper Woodlands when work is in Shenton Way and parents are in Tanah Merah? The Government must come up with more practical solutions !”

Singaporeans blamed for housing woes

From: "truth"
Date: Thu, 24 Sep 2009 04:42:09 GMT
Local: Thurs, Sep 24 2009 12:42 pm
Subject: Shitty Times blames Singaporeans for housing problems

Wednesday, September 23, 2009
Straits Times Editorial: ...Its all YOUR FAULT!

This is an incredible editorial even by Straits Times standard. It makes no
mention of HDB failure to sufficient housing when the foreign influx caused
a population expansion of 400,000. The 23 Sept 2009 editorial puts the blame
for all the unhappiness surrounding the surge in HDB prices squarely on
ordinary Singaporeans :

"There is little doubt that state housing is affordable, whether new or
resale"

"Home seekers create problems for themselves when, as seen, they buy bigger
places than they can comfortably finance."

"They could also be unyielding about wanting to live.....for the (selfish?)
child-minding convenience".

"This newspaper would go further: If they choose to be obstinate about
quirks, they should not be hectoring the HDB for impossible concessions".

Well this newspaper is not a newspaper but a propaganda sheet. The PAP govt
through its FT policy took in 400,000 people in 3 years without the
corresponding increase of housing supply caused this problem. They now want
Singaporeans to shoulder the burden - lower their expectations, shoulder
more debt for housing or stay in smaller units. Straits Times is ridiculous
to berate Singaporeans for being obstinate, unyielding and selfish.....this
paper deserves its 142 ranking....it is nothing more than propaganda. They
have sunk to a new low blaming a problem created by the PAP govt on ordinary
Singaporeans who are now struggling to cope with the pain caused by poor
govt planning.
--------------------------------------
Watching HDB price behaviour, sensibly
http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Stor...

There is a rising pitch of anxiety evident in queries and feedback about HDB
housing in recent months. -ST -->
Wed, Sep 23, 2009The Straits Times

Editorial
THERE is a rising pitch of anxiety evident in queries and feedback about HDB
housing in recent months. These have centred on affordability mainly, no
surprise considering that the sudden spurt in private property prices since
July has boosted HDB values, which already were holding better during the
recession. Hence, complaints about cash over valuation. Why don't buyers
exercise their democratic right to not pay a premium by looking in towns
less 'prime'? Home buyers have also touched on policy issues like household
income ceiling and the operation of ethnic quotas. National Development
Minister Mah Bow Tan addressed most outstanding grouses in a well-timed
statement in Parliament last week, but such is the variety of need and the
habits of personal preference that assurances would still leave some
home-seekers unconvinced.
.
Affordability is a bugbear, which in turn influences notions of supply
relative to demand. Median income and the ratio of household income used for
loan service (up to 30 per cent, as a general rule) cited by the minister
are indicative of most people's ability to pay, but these are rough guides.
In every flat type of up to five rooms and the corresponding price ranges,
households which fall below the median income line could progressively be
less able to own their homes. That's a lot of families. Financing difficulty
can also arise when a family chooses a bigger flat than it can pay for, or
needs. There are far too many of these big-is-better purchasers. But this is
also where the comprehensiveness of HDB's income-differentiated schemes and
the different types of supporting grants available reinforce affordability.
.
There is little doubt that state housing is affordable, whether new or
resale, if one considers carefully precise matching need. The HDB has every
conceivable flat type and location to suit every budget. Home seekers create
problems for themselves when, as seen, they buy bigger places than they can
comfortably finance. They could also be unyielding about wanting to live in
'mature' towns or to be near their parents, for the (selfish?) child-minding
convenience. It is an odd mentality that regards only as 'ulu' the new towns
which otherwise score heavily in more spacious estate layout and the much
nicer, contemporary design of flats. And what of 'distance'? Farthest points
on this island are reachable inside an hour by public transport, faster by
car. Mr Mah urged buyers to be sensible about making 'trade-offs' between
location and price. This newspaper would go further: If they choose to be
obstinate about quirks, they should not be hectoring the HDB for impossible
concessions

posted by LuckySingaporean

Pay for life for an HDB pigeon hole

From: bear
Date: Wed, 23 Sep 2009 07:35:57 -0700 (PDT)
Local: Wed, Sep 23 2009 10:35 pm
Subject: Re: Pay for life for an HDB pigeon hole

> The Papist government took a piece of land they pay nothing or free of
> charge and started telling you it is worth $millions. They go on to build
> pigeon holes and tell you that each holes are worth the market price even
> though it has been "heavily subsidized". No money? No problem, but you can
> still buy and not before they clean off all your CPF savings and you pay the
> remaining mortgage until Thy Kingdom Commeth. You owed the Papist government
> a living. You have been enslaved to work and pay back those "jacked" housing
> loan for the rest of your life.

> Remember to vote for the PAP. They are your perpetual masters. Your fate and
> future are in their hands and determined by them as long as you are here and
> they are in power.

> Cheap "affordable" and heavily "subsidized" HDB pigeon holes selling at
> market value.

> http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Stor...

You pay $350k for a flat that cost less than $100k to build.

You don't have $350K? take a loan from the bank. Now you have not got
enough money to retire? Reverse mortgage your property, pray that you
die before you run out of money.

Why are you working for your entire life to buy a flat that does not
is not even 2 years of your salary, and you have not got a single cent
left when you die?

Evil HDB profiteering at HDB owners' woes

From: "Fabriz"
Date: Sun, 31 May 2009 00:25:41 +0800
Local: Sun, May 31 2009 12:25 am
Subject: Re: Evil HDB profiteering at HDB owners' woes.

If not for this, where do you think Temasek got the money to "throw away" ?

"truth" wrote in message

> truth comment: to the pap leegime money is everything. singaporean
> welfare and life is nothing to them.

> Is the HDB profiteering from flat owners' woes?
> Saturday, 30 May 2009, 12:28 pm | 819 views

> Leong Sze Hian

> One out of every seven HDB flat owners have problems paying their mortgage
> loans. This seems to be what the statistics have revealed. Last year, the
> HDB visited 60,000 flats which had problems paying their loans and gave
> financial counseling to 35,000 households.

> This is 14 per cent of the estimated 420,000 HDB loan mortgages - or one
> in seven.

> As of October last year, 33,000 HDB loans were in arrears over three
> months. This is about eight per cent of the total number who took HDB
> loans.

> In both instances, the numbers are a cause for concern, especially at this
> time when Singaporeans are facing job insecurity and spiraling costs.

> The number of flats which have been repossessed or surrendered to the HDB
> because of non-payment of mortgage loans is another worry.

> According to a Berita Harian report, 1,350 HDB flats were surrendered to
> the HDB in the last four years.

> In February 2007, Parliament heard that 360 flat owners had voluntarily
> surrendered their flats from 2002 to 2006.

> This means that the average number of flats surrendered per annum has
> increased from 72 (2002 to 2006) to 318 (2005 to March 2009).


> This is an increase of about 342 per cent, or about one flat a day now.

> This figure, however, does not include HDB flats on bank loans which are
> reportedly being foreclosed at about 60 a month. It also does not include
> those in arrears who have sold their flats in the open market.

> HDB profiteering from flat owners' misery?

> When the HDB sends a notice of Compulsory Acquisition to flat owners, they
> are only given one month to vacate their flats, and only 90 per cent of
> the flat's valuation is used to offset the loan arrears.

> It is hard enough to lose one's home. Why does the HDB still want to make
> a profit of 10 per cent of the valuation?

> Why not give them a bit more time to find alternative accommodation?

> As a public housing authority with the mission to provide affordable
> housing for Singaporeans, is the HDB not in a sense, in breach of its
> fiduciary duty, in this arbitrary practice of eating up 10 per cent of the
> valuation?

> Are there any public housing authorities in the world that takes an
> additional 10 per cent profit on foreclosure?

> Parliamentarians may like to raise this issue with a view to refunding the
> "eaten up" valuation to all past foreclosed flat owners.

> What is the view of bodies like the Law Society of Singapore in this
> regard?

> In view of the above statistics, and with unemployment at a 5-year high of
> 4.8 per cent, 95,600 unemployed locals, and the record GDP contraction of
> 19.7 per cent in the first quarter, I would like to suggest that the HDB
> temporarily freeze asking those in arrears to surrender their flats.

> After all, as long as HDB flats appreciate at an average annual rate of
> more than the HDB concessionary loan rate of 2.6 per cent, every HDB flat
> may eventually be worth more than the outstanding loan and arrears,
> particularly when the current 13-year property bear market turns around.