One of my colleagues booked a Queensway 5 room flat for $560K from HDB. I guess the HDB lives up to its "market subsidy" policy. Well, the market now is something like $600+K for flats in that area - regardless of recession. Around the island, price have softened but are not exactly cheap.
So the situation is like this....Singaporean workers who incur one of the highest cost of living in Asia are expected to compete against their counterparts in China, India, Malaysia, Korea etc. The only way to do this is for a large segment of the populace to work hard, live poorly and continue to accept low wages as cost of living goes up. In places like Japan and S. Korea, there is a practical option for the people to move out of places like Tokyo & Seoul where the cost of living is unbearable to the other prefectures where life is a lot better for many...
.... in Singapore, you have only one option...
$658,000 for Tiong Bahru flat
BY DARYLL NANAYAKARA
A FIVE-ROOM flat at Block 131B, Kim Tian Road, fetched a princely $658,000 on the resale market recently - more than what it may cost to get a private apartment in Loyang. Related link: » Why go private? HDB flats are better Over at Queenstown and Ghim Moh, the HDB resale market is similarly smoking hot: A five-room flat in Queenstown commanded $600,000 while another in Ghim Moh cost $650,000. These flats are not short on amenities either: they are near food haunts, schools, MRT stations, swimming and sports complexes and a short ride from town. As the price differentials between HDB flats and condominium apartments narrow, property companies told my paper that this is the best time for flat dwellers dreaming of an upgrade, or flat sellers hoping to make a tidy profit, to get in on the act. While prices for private homes have plunged by 13.8 per cent in the first quarter this year, the price tags of resale HDB units have remained largely unaffected. PropNex's corporate communications manager, Mr Adam Tan, said this was due to strong demand for resale flats. He explained: 'The overall continued strong demand for resale flats stems from the fact that there are no more surplus flats with HDB and resale flats present a viable option for people who are unable to wait for projects under construction.' So does this slump in the economy present an opportune moment to switch to private properties? The answer is a resounding yes. 'For people with the means, now is an excellent time...given that the gap between the price indices of the two is at its narrowest,' Mr Tan explained.