THE TEMASEK TIMES

News and views from an unique perspective

Prices of resale HDB flats continue to rise

Posted by temasektimes on October 1, 2012

Despite repeated reassurances from the government, the prices of resale HDB flats continue to sky-rocket, reaching an all-time high.

According to information released by HDB, resale prices of public housing flats rose by 2 per cent in the third quarter over the second quarter to reach a new peak Resale Price Index (RPI) of 197.9.

The rise was also the sharpest increase so far this year for the RPI, which tracks the general price movements in the public residential market.

Prices continue to increase following the record $1 million dollars paid for a Queenstown maisonette recently by a PRC new citizen.

Prime Minister Lee Hsien Loong had earlier declared that public housing remains ‘within the reach’ of young Singaporeans though it has become more expensive:

“We’re building for Singaporeans. So if Singaporeans say they can’t afford to buy the flat, who can afford to buy the flat?” he said.

The prices of HDB flats have increased in recent years due to growing demand and a shortage of supply exacerbated by the relentless influx of foreigners who are easily ‘converted’ to PRs and citizens thereby enabling them to buy flats.

20 Responses to “Prices of resale HDB flats continue to rise”

  1. fpc said

    He is not building for Singaporeans. If it was for Singaporeans, he wouldn’t peg the prices to resale flats that can be bought by prs and he would have plan it far ahead instead of 5 years behind time.

    • Naivety said

      Correction…as current HDB policy also allows Singapore PR to purchase New HDB flats directly from HDB!

      See link as follows: http://www.hdbspeaks.sg/fi10/fi10336p.nsf/cc/SingaporePermanentResidents?OpenDocument

      • Robin Hood said

        SPRs can only buy resale flats, not new flats. But the pain for citizens is that the new flats are also getting more and more expensive. I don’t think the new flats for the citizens are subsidised really. New flats costing around half a million SGD don’t seem to be susidised. They are purposely overpriced to closely follow behind the open market flats.

        High time the HDB open its books to the public to explain how it arrives at such a high price for its public flats. Who can make them do that?

        I bought my 3 rm flat at Telok Blangah for $13,500.00 in 1975. Sold it for $45,000.00 in 1988. Now the same flat fetches >$300,000.00 easily for being close Harbourfront and the city. If you argue, they say its supply and demand.

        I think the economic strategy being crafted is that, citizen buyers of of say, 5rm new flat costing say, $550,000.00 can ‘upgrade’ to a condo nowadays popping like mushrooms all over the island, after 5 years. At that time in the future, his flat may fetch $1.1m in the open market. So he has around $400,000.00 in the pocket after giving back loan repayment to the CPF. He will then buy the condo in a prime area costing $1.8m. There appears to no end on the horizon, until terrible recession comes and the bubble burst. That is going to be an economic Armageddon.

        If our leaders can foresee this but still want to manipulate things, then the situation will be like a pilot who decides to continue with the journey even when the instrumentations warn of likely failure of engines or hydraulic system and who eventually brings all 480 passengers and crew down to doom into the ocean.

  2. sure or not said

    S’poreans have no other choice unless they can afford non-hdb flat.
    Who else can afford to buy hdb flat? PRs??

  3. Naivety said

    Whoopee, I feel so rich…the place that I’m living in!

  4. Pink Panty Loong said

    “Price of HDB continues to rise but they remain AFFORDABLE to Singaporeans” – PeeM Lee

  5. Dragon said

    Now our gov totally cannot even control the HDB resale flat.Only the rich can buy Public Housing.I cannot understand what is Public Housing ,Affordable,Retirement at old age,Resale flat up ,so new HDB flat also up reaching nearly 1 million dollars mark.
    Some PRC PR said they are happy within 4 to 5 years time they are making big profit
    fron thier HDB flat before they return back to thier home land.They are happy waiting
    for the HDB keep on increase thier price.Thanks to our good gov.

  6. “We’re building for Singaporeans. So if Singaporeans say they can’t afford to buy the flat, who can afford to buy the flat?” he said.

    Foreign talent can buy.

  7. Ken Lee said

    ai ya cheap la!! one mth salary can buy leow!!

    • Ken Lee said

      public housing remains ‘within the reach’ of young Singaporeans though it has become more expensive! everyone is within reach just put your hand out! ‘within the reach’ BUT not within young Singaporeans budget!

  8. WP = Wayang Party = Wrong Party said

    WP, why are keeping so quiet? Busy thinking of forming a coalition goverment with the PAP???

    Mod’s note:

    The useless ‘Wayang Party’ is more interested in bird droppings, construction materials and car parks. These spineless bums must be booted out of Aljunied and Hougang in 2016 as well and consigned to the rubbish chute of history. JBJ must be rolling in his grave if he knows the party he spent two decades to build up has now become the PAP’s de facto subsidiary party. A vote for WP = A vote for PAP!

  9. Chip said

    The guy who bought the $1m Queenstown is local lah

  10. Babuseng said

    “We’re building for Singaporeans. So if Singaporeans say they can’t afford to buy the flat, who can afford to buy the flat?”

    Good question. Perhaps LHL should answer that himself.

  11. Alan said

    Just being picky,

  12. Yee said

    what’s wrong with foreigners converting to singaporean? PR can’t buy flat. i mean…most of our forefathers were from overseas. i only have issue with those who are not staying here permanently.

    secondly, perhaps the prices climb because singaporeans get richer! if people can queue to buy a redundant iphone5 then why don’t they save to buy HDB flat?

    and for the truly poor, there’s rental housing. not talking about those who gambled their flats away.

  13. Anon said

    Eh .. TT. .. how come no sound from you for 2 days ?

    Have you been ISA arrested ?? Frankly speaking, its about time too. Let me know and I’ll break out the champagne to celebrate (with my Pinoy friends) …

    • Jaded said

      TT will never be arrested, they are the PAP Internet Brigade, the ‘B’ team of the PAP pretending to support the SDP when their aim is to split the votes of the opposition.

    • Naivety said

      Both the Editor in Chief & Moderator of TT had been Assassinated by ‘Aliens’ already…LOL

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