bepgof 20 Report post Posted March 29, 2010 (edited) PM Lee SLmentioned above during a dialogue feedback unit days ago. What was he try to imply? Can use CPF to buy 2 flats? Edited March 29, 2010 by bepgof Share this post Link to post Share on other sites
chronograph 0 Report post Posted March 29, 2010 PM Lee SLmentioned above during a dialogue feedback unit days ago. What was he try to imply? Can use CPF to buy 2 flats? I'm hoping he release special account to pay for HDB unit. At the moment, ordinary account is used only... but with high HDB prices it seems logical to release SA for this purpose. Share this post Link to post Share on other sites
Phantom 1 Report post Posted March 29, 2010 I'm hoping he release special account to pay for HDB unit. At the moment, ordinary account is used only... but with high HDB prices it seems logical to release SA for this purpose. the government should do more to rein in property prices than to allow SA to be utilized. It's dangerous to allow citizens to rely just on their property as a nest egg. During 96/97 peak property prices many citizens who bought end up having to sell hdb and private properties at losses. Even at current frenzy some still negative sales. We shouldn't band aid the problem. But rather tackle it at it's root. If interest rate rises 100 to 150 basis points, many investors will sell as they can't handle the instalments. The rental Market IMHO isn't as bouyant as it looks. We're seeing one of the worst asset inflation over a 1.5 year period caused by excess liquidity and low interest rates. Share this post Link to post Share on other sites
chronograph 0 Report post Posted March 29, 2010 the government should do more to rein in property prices than to allow SA to be utilized. It's dangerous to allow citizens to rely just on their property as a nest egg. During 96/97 peak property prices many citizens who bought end up having to sell hdb and private properties at losses. Even at current frenzy some still negative sales. We shouldn't band aid the problem. But rather tackle it at it's root. If interest rate rises 100 to 150 basis points, many investors will sell as they can't handle the instalments. The rental Market IMHO isn't as bouyant as it looks. We're seeing one of the worst asset inflation over a 1.5 year period caused by excess liquidity and low interest rates. "You see u buy hdb flat at $x and now sell $y, you made $z, u want to see your property appreciated over the years." I read the above sometime back .... hdb prices will go up and up. So stress living in sillypore. Share this post Link to post Share on other sites
Phantom 1 Report post Posted March 29, 2010 Case of teeth bite the Tongue. What to do? Share this post Link to post Share on other sites
yoongf 11 Report post Posted March 29, 2010 Prices appreciate slightly above inflation rate is good enough. Do not need 10% per annum type of increase. If only own 1 flat, then price go up or down makes no difference. Sell high, also mean buy high. Share this post Link to post Share on other sites
bepgof 20 Report post Posted March 29, 2010 (edited) Prices appreciate slightly above inflation rate is good enough. Do not need 10% per annum type of increase. If only own 1 flat, then price go up or down makes no difference. Sell high, also mean buy high. CPI 2009 at 0.6%, HDB flat 2009 at 8.1%, good or bad enough? Edited March 29, 2010 by bepgof Share this post Link to post Share on other sites
Phantom 1 Report post Posted March 29, 2010 Prices appreciate slightly above inflation rate is good enough. Do not need 10% per annum type of increase. If only own 1 flat, then price go up or down makes no difference. Sell high, also mean buy high.I agree. If it's to stay no point speculating. I Believe we are seeing an average of 50 to 80% increase yoy. If that's not asset bubble I don't know what is. And they say Asia had it easy this downturn. If china and hongkong does a belly up on the property Market, we will won't be too far away. 700k DBSS units look like a bargain in this market. Lol Share this post Link to post Share on other sites
bepgof 20 Report post Posted March 29, 2010 (edited) I agree. If it's to stay no point speculating. I Believe we are seeing an average of 50 to 80% increase yoy. If that's not asset bubble I don't know what is. And they say Asia had it easy this downturn. If china and hongkong does a belly up on the property Market, we will won't be too far away. 700k DBSS units look like a bargain in this market. Lol 4.7mil of population with 1mil hdb flats just completed recently. 4 ppl in 1 unit. Assume 75% pol in hdb, need 4.7m/4 = 1,175,000 flat ! Don't understand gov got statistic department to reflect ACTUAL but seems not acting (build home) quick enough to have demand met. Price sure will go up in range of 8%-15% yty. Logical for gov to slow down intake of immigrants. Interestingly, gov reset cpi's base to 100% in 2009, the rest of years' "re-adjusted", any significance? Edited March 29, 2010 by bepgof Share this post Link to post Share on other sites
Phantom 1 Report post Posted March 29, 2010 That includes kids.. Aged .. And transient workers.. Students teenagers etc. Not enough homes? Should check the vacancy rates in condos like the sail and esta, casah merah etc.. When bull market analyst say buy buy buy.. Bear Market say sell sell sell.. Herd instinct taking over now IMHO. 96/97 people also complain about homes too ex not enough homes.. We forgotten? Share this post Link to post Share on other sites
yoongf 11 Report post Posted March 29, 2010 The talk of "not enough homes" is all relative. In absolute terms, there is enough homes to house everyone. Just that at a certain price point, there is insufficient supply. The purchasing power is not elastic enough to match the supply curve. Share this post Link to post Share on other sites
Phantom 1 Report post Posted March 29, 2010 I forot to mention that a good number of hdbs are owned by private property owners and at the same time rented out. The fastest way to free up supply is to force private property owners to sell their hdb.. Which of course would be draconian in the thoughts of private property homeowners. If the mandate of hdbs is supposed to be affordable housing for the majority of singaporeans then then political backlash should be containable. Frankly the hdb flat has become more of an asset to yield rental gains. Tough measures should be in place to control the spiralling effect of this asset inflation cycle. In all fairness, property assets should be able to measure up to inflation over time but this time round, crazy is an understatement. I have heard a neighbour sold his Simei HDB for 100k COV This time round our local government is behind the curve. Share this post Link to post Share on other sites
bepgof 20 Report post Posted March 30, 2010 (edited) The talk of "not enough homes" is all relative. In absolute terms, there is enough homes to house everyone. Just that at a certain price point, there is insufficient supply. The purchasing power is not elastic enough to match the supply curve. Hi Yoongf, care to enlighten & elaborate: "just that at a certain price point, there is insifficient supply"? Edited March 30, 2010 by bepgof Share this post Link to post Share on other sites
bepgof 20 Report post Posted March 30, 2010 (edited) I forot to mention that a good number of hdbs are owned by private property owners and at the same time rented out. The fastest way to free up supply is to force private property owners to sell their hdb.. Which of course would be draconian in the thoughts of private property homeowners. If the mandate of hdbs is supposed to be affordable housing for the majority of singaporeans then then political backlash should be containable. Frankly the hdb flat has become more of an asset to yield rental gains. Tough measures should be in place to control the spiralling effect of this asset inflation cycle. In all fairness, property assets should be able to measure up to inflation over time but this time round, crazy is an understatement. I have heard a neighbour sold his Simei HDB for 100k COV This time round our local government is behind the curve. Quite agreed with 2nd para. Sorry lah, don't quite understand what is "behind the curve" & which curve, the one mentioned by yoongf? If that's the case, may be gov is considering allowing cov to be paid by cpf, to "compensate" for earning power's under elasticity? Edited March 30, 2010 by bepgof Share this post Link to post Share on other sites
yoongf 11 Report post Posted March 30, 2010 Demand and supply curve theory suggest that if demand exceeds supply, then the price point moves up the supply curve. Offer a higher price, then got more ppl willing to sell. Deals will be matched. Problem now is, ppl do not have the ability to offer higher price, the limiting factor being the CASH component required to meet the COV demands. The supply is there, just that the price does not match. In conclusion, it's not a question of insufficient supply, it's just that the buyers do not have the ability to pay the higher price demanded by the sellers, thus no deal. This is the same argument to say that the world will never run out of oil, becuase nobody will be able to afford that LAST DROP. The govt will never sell flats at a LOWER price just to make the buyers happy. The existing owners will be a even bigger group of unhappy ppl. The govt needs to study closely regarding this COV thing. I wld love to buy an apt at Orchard Road for $500psf when the going rate is $3K psf. Shd the govt BTO me a $500psf apt for me there? Shd the govt loan me $2.5K psf to make up the shortfall between what I have and what is the going rate? Shd I give up my dream and settle for Changi Beach? Share this post Link to post Share on other sites
