The truth is becoming very clear. The PAP govt allowed a large influx of foreigners into the country with a large number of them obtaining PRs or citizenship in the past 3 years making them eligible for the purchase of HDB flats. The HDB did not provide sufficient supply for the increase demand that is why prices were going up even when the economy was slowing down. The PAP govt has made a mistake that has impacted Singaporeans looking for homes negatively. Their response to this issue has been to insist that HDB flats are still affordable and to urge Singaporeans to lower their expectations to go for smaller flats in less preferred locations. The govt mouthpiece even went on to say that Singaporeans are obstinate, selfish and unreasonable. The PAP govt is trying to deny there is a problem and push the blame to ordinary Singaporeans. These are not the actions of a good and responsible govt. The high price of housing relative to income will result in Singaporeans shouldering heavier debt and a poorer quality of life. Many Singaporeans are already struggling to make ends meet as the cost of living has gone up faster than their income in recent years.
The report by Eugene Lim, associate director, ERA Asia-Pacific can be found here via The Business Times.
Resale HDB prices increased by 38 percent; 40 percent of buyers PR
Prices of resale HDB flats have shot up 38% over the past three-and-a-half years according to Eugene Lim, associate director, ERA Asia-Pacific. But what's shocking is that 40% of buyers are made up of Permanent Residents according to recent ERA's resale transactions.
"The government's target population of 6.5 million is steadily increasing theIt is widely known that prices have risen over the past few years and that we had a large influx of new residents. But when you see these such statistics side by side, it begs to question why weren't countermeasures put into place earlier considering this happened over a sustained period of three-and-a-half years?Another statistic we found interesting in the report was how 86% of ERA's HDB recent resale transactions were concluded with Cash-Over-Valuation (COV). This number seems to come into conflict with what Mr Mah Bow Tan said recently about a third of HDB resale transactions done at or below valuation.
pool of PRs; and they have to buy their HDB homes from the resale market as they
do not qualify to buy new flats directly from HDB. ERA's resale transactions
show that PR buyers make up some 40 per cent compared to 20 per cent three years ago." - Eugene Lim, assosiate director, ERA Asia-Pacific.