Debunking the HDB myths (Part 3): Rising prices of HDB flats generate wealth for Singaporeans.
By Eugene Yeo, Consultant Editor
[In this 3-part series, Eugene Yeo sets out to debunk the three most pervasive misconceptions of HDB flats: – 1. Singaporeans own the flats, 2. The flats are affordable and 3. Rising prices lead to wealth creation]
MYTH # 3: Rising prices of HDB flats will lead to wealth creation for Singaporeans.
TRUTH: It will have a negative wealth impact due to higher financial liabilities according to a NUS study done by Abeysinghe and Gu Jiaying
In a reply to question from a MP who asked if a cap should be imposed on rising HDB resale prices during a Parliamentary session in July, Senior Minister of State for National Development Grace Fu noted that HDB flats remained affordable to Singaporeans.
She said:
“‘HDB flat prices should be a reflection of Singaporean’s wealth and it is “not a bad idea” for prices to increase steadily, especially for those holding onto negative assets bought in the previous market peak in the mid 1990s.’” Continue reading
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