Tag Archives: HDB

Debunking the HDB myths (Part 3)

Posted on 3 Sep 2009 | Comments Off on Debunking the HDB myths (Part 3)

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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HDB resale prices to rise

Posted on 2 Sep 2009 | Comments Off on HDB resale prices to rise

HDB resale prices rose 1.4 per cent in the second quarter to a record high.

HDB resale flat prices – already at record high levels – are likely to continue rising this year, said National Development Minister Mah Bow Tan on Wednesday.

‘The flat prices would probably go up … by 1 per cent, 2 per cent,’ said Mr Mah. ‘It will just keep on going up if the economy recovers as people expect, and if confidence returns but affordability will always be there.’

HDB resale prices rose 1.4 per cent in the second quarter to a record high.

Resale flat prices go up in tandem with a very strong market, Mr Mah told reporters at the launch of the final skybridge at The Pinnacle@Duxton on Wednesday.

‘We subsidised you when you buy and we increased the value of your flat when you live in it and… facilitate you to monetise it when you grow old. This is the best form of investment and welfare for the people,’ said the minister.

Standing at 50 storeys, The Pinnacle@Duxton is Singapore’s tallest public housing development.

It sits on the site of the area’s first two HDB blocks, which were built 50 years ago. It was the first project in which an international architectural competition was called to get the best design ideas.

Source : Straits Times- 2 Sep 2009

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