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.’”
The ruling party has never failed to remind Singaporeans that it has brought about high home ownership and rise in asset value under its rule.
During a speech given to Kim Keat residents in 1995, then Prime Minister Goh Chok Tong said:
“By how much have we increased the value of your assets? At the start of the upgrading, 3-room flats in the precinct commanded less than $80,000 in the open market. Today, I am told, housing agents are offering as much as $160,000. Your assets have doubled in the last three years. All of you made the right decision, by supporting the upgrading programme and voting strongly for it.”
Read rest of article here:
http://temasekreview.com/?p=12247
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.’”
The ruling party has never failed to remind Singaporeans that it has brought about high home ownership and rise in asset value under its rule.
During a speech given to Kim Keat residents in 1995, then Prime Minister Goh Chok Tong said:
“By how much have we increased the value of your assets? At the start of the upgrading, 3-room flats in the precinct commanded less than $80,000 in the open market. Today, I am told, housing agents are offering as much as $160,000. Your assets have doubled in the last three years. All of you made the right decision, by supporting the upgrading programme and voting strongly for it.”
Read rest of article here:
http://temasekreview.com/?p=12247
