In my 3 July 2009 blog posting[Link], I wrote:
"In 2008, our population grew by 5.5% to 4.84M[Link] that is an addition of roughly 250,000 people. There were 100,000 newly minted PRs and citizens in 2008 and these people become eligible to buy resale HDB flats. Even in this severe recession demand is up possibly because of new immigrants".
A commenter Kojakbt posted a link to a chart that shows this big surge:
HDB prices its new flats based on the resale market price. The demand for housing, be it rental or purchased homes, has surged due the 400,000 foreigners coming here in the past 3 years. HDB builds 8000 flats a year[Link] and this is insufficient to meet the new demand. I'm not even sure 8000 flats is even enough for Singaporeans getting married and upgraders let alone the big surge in foreigners coming here. It is strange the govt & HDB did not plan for this. Now it spends all its time and effort telling Singaporeans that "HDB flats are still affordable"..... Singaporeans now have to pay more and shoulder higher housing debt because HDB undersupplied the market and the PAP govt chasing after GDP growth allowed in more foreigners than they can house. It is tiresome to listen to the PAP govt trying to talk its way out of this housing mess by denying there is a problem and insisting that 'flats are still affordable'. HDB's idea of affordability is you should downgrade your expectations all the way to a 2 room flat at a location you don't want when previously you could have owned a 3-room flat at a better location.....this is hardly a solution, the govt has simply passed the pain and consequences of its actions and poor planning to ordinary citizens who are already struggling with the high cost of living and facing a declining quality of life here.