Tuesday, September 22, 2009

Affordability in Singapore...

It is strange isn't it? Whenever something goes up sharply in price, instead of finding ways to bring down or stabilise the price, our govt spends so much effort explaining to us why it is still affordable.

The HDB resale prices rose something like 40% in less than 2 years. How many people's income rose 40%? Whatever it is, HDB flats now are LESS AFFORDABLE. Whether it is still affordable is a subjective...it depends of what criteria you use to measure affordability. There is no point arguing if it is affordable or not. It is definitely LESS AFFORDABLE than before. HDB can always argue cheaper resale flats are available in faraway locations like Woodlands etc. Or you can buy a smaller flat and so on. We see the same thing happening for healthcare cost which is also rising faster than income. The truth is for the same job a person does, he now can afford less and that is a fact. We are all climbing this motorised stepper...at increasing speeds, you work harder just to stay at the same position. We are told to 'lower our expectations' because the system now yield less for the working class per unit of work. That is the heart of the problem. How does the PAP govt persuade people to accept and participate in such a system?

23 comments:

Anonymous said...

It's actually quite easy to keep things affordable. Just offer them at the same price (or cheaper), but reduce the size or quality.

So HDB can just build more 2 or 3 room flats in remote parts of Singapore and offer them at lower prices than now. Then they can announce that flats are still affordable.

Anonymous said...

yup, that's my HDB/PAP.

$$$ and crap - they take in $$$ and spit out c.r.a.p.

Anonymous said...

Not so much about affordable but more on " tolerable".

Singaporeans can tolerate very well.

Now, that's important. That's why our country is so peaceful and stable.

Ghost said...

If you read the Strait Times on Saturaday, you can see a full page article on the 'debate' of the affordability of property in Singapore.

redbean said...

we can always compare with the dog's kennel in hongkong which they consider fit for human beans. with this kind of standard, we will reach there in no time.

Anonymous said...

"How does the PAP govt persuade people to accept and participate in such a system?"

Easy - Just give all NS-Men $100 extra. Give all citizens $300 extra. Give tax rebate of $1000 more; extra $1000 if you did your NS.

And voila! Singaporeans will continue to vote PAP and gladly pay extra $50,000 extra for their 4-room pigeon hole.

Singaporeans are that stupid!

Anonymous said...

We are nation betrayed. Vote out the PAP.

Anonymous said...

The current HDB prices are almost at the limit of "affordability" only through a huge mortgage. Wages are suppressed when the labout pool is inflated by the huge influx of foreigners.

I will guess that the 40% rise in price seen in the last two years cannot be sustainable even in the near term.

Anonymous said...

When Singaporeans cannot sustain the prices, there is always foreigners who can. So just let in more of the rich foreigners.

Also based on the "market subsidy" approach, HDB prices will also rise accordingly.

Can't afford? Then buy the cheapest in Singapore, like those 3 rm flats in Jurong West or Woodlands.

Still can't afford, too bad lah. Remain single and stay with parents lah.

Still cannot then very bad lah.

xl said...

Doesn't make sense. Encouraging people to up their birth rates while expecting people to buy 2-3 room flats.

Anonymous said...

HDB will go private soon. HDB price=private apt. price

Anonymous said...

When HDB prices go up sharply, they say it is still affordable and you are choosy.

When healthcare costs go up, they say it is still affordable and you never take care of your own health.

When locals lose their jobs and cannot find new jobs, they say you are choosy and not willing to find any job that pay the bills.

When commoners feel unhappy that a senior officer spend lavishly on oversea cooking course amid the economic crisis, they say the commoners are lesser jealous immortals.

someone sad for singapore said...

They are committing genocide against the poor people of Singapore.

The country has to unite as one and vote out these fuckers before we have nothing to eat and nowhere to live.

We have to fend for ourselves.

Anonymous said...

Can the garhmen releases the actual figure between PR/Citizens and Singaporeand applying new and buying re-sale flats. Also ratio of demand and supply. Don't just say vague things like not possible to build every flat for each resident.

Well we know they always falter... Either they build too much or too little or not at all (BTO).

Last year we have 79,000 PRs and if just 10% of them buy a resale flat, surely that will have caused the price to shoot up.


Not problem it is still affordable. In fact I can reduce the amount income to even less say just 15% for the house loans...Stretch it to 99 years loan. Hey are we renting now?

Kojakbt (kojakbt@gmail.com) said...

The number one reason why HDB resale prices have been increasing is due to the huge influx of FTs. See graph: http://i42.tinypic.com/2ecql4j.jpg

From the huge influx of FTs, a large number of them were given PRs. If you are a PR, would you rather keep renting a flat (with zero possibility of return) or buy a flat (with some possibility of return)?

The PAP govt would never want to talk about this for obvious reasons. They think we are 3 year old kids who can't think!

One more thing, did you guys know that PR siblings can buy a HDB resale but not S'porean siblings, generally speaking?

Anonymous said...

When investors lost heavily in Minibonds due to miss- selling by financial institution the garhmen said you invest with your eye opened, technically meaning you can afford to lose

Anonymous said...

WAKE UP!
Singapore Property market is never a trully FREE market...it is all but controlled by Govn n policies...So....when HDB prices are so high...they is only ONE real culprit. GOVen. nO NEED TO ARGUE SO MUCH.

Anonymous said...

What is the new growth engine to support this sky rise in propoerty prices for the future generation? CASINOs, I.R.?

Now the MNCs are leaving in doves for china and what are the next mass job providing industries?

If the sub-prime crisis happens here, well I am going to point the finger at garhmen for not doing the right thing.

but... honest folks that save hard may be better off,now they can finally buy a flat to stay without any mortgage. People may think I am selfish but what good if country has billions trillion of dollars, first world status, excellent GDP, great garhmen if we CANNOT BUY A FLAT TO STAY AT AFFORDABLE PRICE, NO JOB SECURITY,NO SOCIAL NET, NO OLD AGE DIGINITY.

A flat is a BASIC NEED FOR LESSER MORTAL. The rest can just stay in ivory towers.

When is the next election coming?

Anonymous said...

Don't worry. 1 room flats will be the next affordable housing. Damaged been done when the garhmen opens the floodgates for huge intake of PRs without due consideration to the consequences.Worst is to come when the IRs are fully in operation.

CT said...

Hi lucky,

would like to comment on your point "cheaper resale flats are available in faraway locations like Woodlands etc."

recently i bought a 4 room resale flat in woodlands. paid 345k. its cheaper still than say, Toa Payoh...but the prices there have appreciated too.

Anonymous said...

Don't waste anymore time.

Vote them out if you think is necessary.

With the same party, WE HAVE NOTHING TO GAIN AND ALL TO LOSE.

with a ABC opposition, WE ALL NOTHING TO LOSE BUT EVEN SOMETHING TO GAIN.

I believe the above thought came to many of us so we can see the seriousness of the problem...

of course to them we may SEEM LIKE LESSER MORTALS ALWAYS WHIMING OVER LESSER TRIVIAL NEEDS.

Anonymous said...

Sirs,

Paying your flat between $400-$500 over 25 years is affordable.

Damn. Why don't they made it even more affordable by letting us paying over 50 years.

Then we forever slave to HDB.

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