Kelvin Seet's Letter on HDB prices

[singveld]

when the economic crisis hit

most sinkies retrench

most FT gone

the price will fall

so let nature do the adjustment for the HDB bubble economic

oh the bank profit will be hit, saving will be at risk too.
good luck to us all.

 

[0939]

Example - Purchase price 5room in Punggol (2000) is $230K. In 2008, valuation of the same flat in Punggol is $350K. let's say, Spore has given the economic outlook going forward as bleak & expecting contraction, shouldnt the "going forward" valuation be lower than the current prices. I know its willing buyer, willing seller, but there's no mechanism to keep a reality check on HDB appointed valuers. here lies the problem - Will valuers lower the valuation of HDB, knowing that the world (Sinkypore included) is going into a Depression?
Theyre telling us , "no worries, your Punggol HDB price will be $350K now & even higher regardless of the economic gloom ahead"
Im talking about only the Valuation portion, COV is another story.

HDB cannot lower their price. If I can remember correctly what LKY said many years. The whole of HDB flays owners will be affected. Even though it is paper loss. That will be disastrous. The last recession between 1987 to 1991, price was stagnant but never decrease. Therefore valuation on resale price also will never decrease. The different now is to lower the COV. That is what is happening now on the market. Very soon some will offload below valuation.

 

[oli9]

HDB cannot lower their price. If I can remember correctly what LKY said many years. The whole of HDB flays owners will be affected. Even though it is paper loss. That will be disastrous. The last recession between 1987 to 1991, price was stagnant but never decrease. Therefore valuation on resale price also will never decrease. The different now is to lower the COV. That is what is happening now on the market. Very soon some will offload below valuation.

Not true.
Those affected will be those who bought them at the peak, no thanks to uncontrolled imaginary price increases.
Then again, what's the purpose of buying HDB in the 1st place? Its to put a roof over ours & our family's head. Not for speculation purposes.
Then again, those who bought HDB at its peak ought to be shot as theyre in it with their eyes open.
This begs the question again - Why valuation of HDB never comes down? Is it a financial liability tool used by PAP to tie every Sporean to slog the best part of their lives away just for a piece of square concrete?

 

[silverfox@]

HDB cannot lower their price. If I can remember correctly what LKY said many years. The whole of HDB flays owners will be affected. Even though it is paper loss. That will be disastrous. The last recession between 1987 to 1991, price was stagnant but never decrease. Therefore valuation on resale price also will never decrease. The different now is to lower the COV. That is what is happening now on the market. Very soon some will offload below valuation.

What 0939 said is correct, if HDB lowers their price, whole of HDB flat dwellers will be affected and they will think why prices have dropped when there is inflation?

Imagine paper loss will be disastrous to these people and the CPF loans they have taken out.

Human nature has caused an initial project of providing a shelter to people to money making for people. We can't blame these people for being greedy, can we?

Who would want to make a loss? Who would want to let go of an opportunity to make some money from selling their own HDB flat?

No one in fact.

 

[silverfox@]

If everyone in the resale sector wants to price their own flats lower than what the HDB is selling direct, then HDB flats will not be in demand. HDB will then lower the price, but then this kind of situation is not possible as flat dwellers in resale flats will not let this happen.

People staying in flats will not co-operate.

 

[oli9]

Imagine paper loss will be disastrous to these people and the CPF loans they have taken out.

You said it there. HDB prices are inflated for the purpose of "siphoning" Sporeans hard earned CPF monies. This is a master stroke. By forever increasing valuation of HDB flats, the new flats will be more expensive & that, in a way, will ensure Sinkyporeans guai guai stay put in Sinkyland & pay off your housing debt.

 

[zhihau]

Human nature has caused an initial project of providing a shelter to people to money making for people. We can't blame these people for being greedy, can we?

why should we reward greed? the HDB should honor its mission statement. it is to be build affordable and cheap housing to the nation. peg the prices of the new HDB pigeon holes close to the construction costs and as of the resale value of the flats, let the market take care of itself.

 

[zhihau]

You said it there. HDB prices are inflated for the purpose of "siphoning" Sporeans hard earned CPF monies. This is a master stroke. By forever increasing valuation of HDB flats, the new flats will be more expensive & that, in a way, will ensure Sinkyporeans guai guai stay put in Sinkyland & pay off your housing debt.

alternatively, i can choose to migrate :p:p:p

 

[0939]

The one recession in 1987 and the one in 1997, HDB have not lowered the price. This year
recession, we shall see. Suppose the private properties have gone down, still it would not be closed to the resale flats except for some few. There will be always supply and demand. Suppose resale flats have gone down to some 20% lower. Who are these buyers?
Definitely not from the private properties owners, maybe some, maybe some 1st time HDB buyers. Would sell your HDB flats below 20% valuation. Just like stock, would you sell?

 

[oli9]

Would sell your HDB flats below 20% valuation. Just like stock, would you sell?

To begin with, the valuation of HDB is already skewed. Its not a question of selling your HDB below valuation.
Its the blardy HDB appointed valuers themselves who are to be blamed. They are inching the valuation year after year after year, its no small wonder why so many Sinkies are complaining that they cannot afford HDB without slicing a huge chunk of their pay for prop debt servicing!!!!!
If in bad times,(which i think will be sooner than later) will HDB valuers do the right thing by inching down the valuation so the pay-cut Sinkies can afford to buy?

 

[zhihau]

The one recession in 1987 and the one in 1997, HDB have not lowered the price. This year
recession, we shall see. Suppose the private properties have gone down, still it would not be closed to the resale flats except for some few. There will be always supply and demand. Suppose resale flats have gone down to some 20% lower. Who are these buyers?
Definitely not from the private properties owners, maybe some, maybe some 1st time HDB buyers. Would sell your HDB flats below 20% valuation. Just like stock, would you sell?

PRs are now allowed to buy from resale market, isn't it? :p:p

 

[dysentry]

Example - Purchase price 5room in Punggol (2000) is $230K. In 2008, valuation of the same flat in Punggol is $350K.

Understand that Pasir Ris 5-rm is now offering 25k below valuation, but still can make profits if bought in 2000.

 

[silverfox@]

Understand that Pasir Ris 5-rm is now offering 25k below valuation, but still can make profits if bought in 2000.

Who wants to go tell all these owners not to make money?

If you call them, they will say "crazy".

 

[0939]

Understand that Pasir Ris 5-rm is now offering 25k below valuation, but still can make profits if bought in 2000.

I missed out the PRs.

During those time, those who sell their flats below valuation. HDB would not hesitate to buy them directly from owners. Thus by maintain the market rates. Probably this owner has a deadline to sell below valuation. Maybe he got his temporary TOP of his private home. Next year, we may see many of these sellers.

 

[dysentry]

Who wants to go tell all these owners not to make money?

If you call them, they will say "crazy".

We have to see which collapse first; societal collapse due to influx of foreigners to prop up real estate prices, or real estate prices stop seeing greater fools.

Looks like Singapore still needs to be ruled with an authoritarian hand to keep the scales balanced.

 

[dysentry]

She is selling some sort of advertisements, basic $1800 with commissions of averaging a $1000 over, not inclusive of perks and allowances.

Instead of chasing her condo dream to match you, I think it would be wiser to spend the money getting a degree in Canada, and emigrating there for good, just my suggestion.

 

[silverfox@]

We have to see which collapse first; societal collapse due to influx of foreigners to prop up real estate prices, or real estate prices stop seeing greater fools.

Looks like Singapore still needs to be ruled with an authoritarian hand to keep the scales balanced.

HDB flats harder to collapse, because majority of ppl use their CPF funds. Sell at loss, considered CPF loss, so to most people even if sell at loss is more of the reason they want to upgrade. Unless necessary, these flat dwellers wouldn't sell at loss. Additional money also goes back to repay CPF 1st then remaining is cash which they take.

 

[silverfox@]

Instead of chasing her condo dream to match you, I think it would be wiser to spend the money getting a degree in Canada, and emigrating there for good, just my suggestion.

To each their own. Every trade will have people making good. Emigration doesn't mean it will be good and the grass over the other side of the fence doesn't mean its greener.

There are people who migrate and don't come back. There are people who migrate and keep coming back because they miss their friends, relatives or even the food. Knew a lau uncle who migrated to Canada. Every 2 months he come back sg because to catch up on friends, food and also mahjong with some of us.

 

[damnu88]

No matter what,if all have noticed half of your housing loan is paying for the interest. when you got the keys after paying deposit, they will wipe out your CPF for the installment. At the end let said a HDB that cost you 200k, you will end up paying more than 400k after the whole course which was more than 100% of your buying price.
So the morale of this one strategic by the PAPies was to retain your CPF for confirm payment and you gor to slave like dog for your repayment. Best of all, after you complete the installments at around retire age HDB has get back the $$$ and you left with another 60 yrs afterwhich the HDB can get back the Unit. 99 yrs mah....
So think of it who will get the last laugh.

 

[zhihau]

So think of it who will get the last laugh.

i think my toes will be the last to laugh