10/18/2008

Reaching for the pinnacles the profitable way

Tan Kim Chuan wrote to the ST forum stating that the relaunch of Pinnacle@Duxton is priced at $200k more than when it was launched in 2004. Now this must be a mis statement. It cannot be. How could HDB priced its flats at $200k more than the original launch price? HDB is not a private developer existing just for pure profits. A whopping $200k increase all because the market value of these flats were priced at a discount to market value is simply atrocious. Most of these buyers are going to incur a loss very soon with the condition of the economy and the falling property market. Now, shouldn't this be a good question for the MPs to raise in Parliament? Or should Tan Kin Lian be responsible to talk about it in Hong Lim Park first? Tan Kim Chuan politely commented that this is either over pricing or profiteering from the property boom. Does anyone with political and moral responsibility to the people think that the pricing is grotesquely excessive and need to be brought down as the buyers are our people and many are young first timers? Or is it another case of greed is good, profit is good? What has become of the original HDB, the builder of affordable homes for the people. HDB used to be a nation builder with a national responsibility. Now it is becoming a commercial animal, and profit is all it sees. Come on MPs, ask some questions would you?

16 comments:

Anonymous said...

Bear in mind that first-time buyers need to be within the combined $8,000 salary limit to be eligible, and the flat is priced at what, $645,000? HDB flats at some other areas are even priced around $700,000.

This is definitely a bubble. That buyers will end up with nothing to retire upon has been highlighted by some observers recently. But a number of things can happen way before retirement, such as political changes affecting sentiments. I think potential buyers need to be warned about the repercussions when the bubble bursts, which will inevitably happen like all bubbles do.

Anonymous said...

I really think we need a serious recession to put things in perspective. And do not only blame the developers, but also buyers who are willing to pay insane prices for such properties.

redbean said...

the buyers are just poor consumers who needed a place to live in. i have no comments about the speculators for they are gambling in properties to make profits.

pity the home owners who have to make a decision between the devil and the deep blue sea. when property prices are being pushed up and all the media helped in beating the gongs, if the homeowners need a place to stay, they have to commit now or later. no one will know when the music will stop.

the crime is by those who think that driving properties to high heavens is a good thing.

Anonymous said...

you guys have tunnel vision or what? there are still many hdbs to be had for under $300k. with subsidies from the government, it is a steal man.

i am hoping to get a cheap hdb from my government soon. i don't have the money for pricier hdb in centrally located areas but it's ok. sinkapore is small, i rather buy what i can afford.

i just hope for a more stable property market. not high and not low so i end up losing money when i have to sell.

all looks good to me so far. i think the government is on top of the situation to keep prices stable.

instability not only hurt genuine home buyers but also drive needed investment into our market away which can be unhealthy for our economy in the long run.

on a positive note, despite steep prices of these high end hbd homes, the demand is still very strong. goes to show many see good long term return in these homes. it is also their way of affirming their trust in our deservingly well paid leaders.

don't be envy, be prudent.

Anonymous said...

I wont pity those who decide to buy this place when they retire with a debt (vs nothing). They deserve to live out their stupdity.
For that kind of money, they can easily buy elsewhere and save a lot of money and debt. Good Luck to them...

Anonymous said...

It is not a zero sum game as long as the govt don't kill the resale market with over supply and over invested properties.

Young family who needs bigger flat now must not feel that their investment will worth nothing or that they will suffer a great loss when it is time for them to downgrade because their kids have grown up and left to build their own nests elsewhere.

And for many singles who own properties, they too can liquidate by downgrading to finance their old age.

For most singaporeans, their home is their only asset. They have put so much money into this pigeon holes , do you want their homes to worth nothing or cause them great financial loss?

90% of them are homeowners. Don't play play. The government knows that.

You just hope the government don't screw up the value of your family or your homes which is highly possible because of oversupply and the reliance on foreigners.

High value is not an issue if we keep to an affordable formula for most singaporeans. But a rock and roll property market will only benefit the savvy rich investors - not stupid investors.

The people who are preaching doom to the market are probably waiting at the sideline to reap from unfortunate homeowners who have fallen into bad times and force a fire sale.

I opt for a stable property market.Once up, stay and hold and preferably,don't rise beyond the means of the general market nor fall to the point of hurting our fellowmen.


For those who truly can't afford even the most modest homes, we can always press the government for more subsidies to breach the gap for these folks.

Overall, a healthy return for our homes can only benefit everyone in the long term.

No true singaporean will want to see those who have fallen into bad times to lose their homes or suffer great financial loss because of it so that some dogs can come along and pick it up and make a huge profit when the prices rise again.

Are you a dog?

Anonymous said...

hdbs are currently enjoying healthy gain for current home owners. now oppositions want to see the value of your homes fall to hell by questioning the wisdom of our government that has brought you great wealth. now if it falls, you know who to point the fingers at right?

there are goodness me, thousands of low income families to retirees who are living off from rental income because of the abundance of jobs created by the garmen. these oppositions are calling for the bursting of the housing market. these oppositions want to fuck off foreigners who lease your hdb homes.

do you know what will happen to all these old folks and low income families when they can't find tenants to supplement their income?

now the numbers of rented homes are in the hundreds of thousands. a tremendous source of revenues for consumers to power our economy.

wishing for the bubble to burst is tantamount to denying this source of rental income to the lower class as well as the struggling middle class household.

it is like wiping hundreds of millions of dollars off the market. what do you think we happen to this country?

are you fucking crazy you bunch of fucking idiots?

if you don't know what that means, let me just half you salary and see how you are going to survive,

the profitable housing market is intrinsically linked to the survivability of a lot of our lower income group.

without these foreigners support, the government will experience hell in their weekly meetings with the people at their housing estates.

the bursting of the bubble will send our economy far deeper and longer in recovery.

bad news for everyone.

who wish this on everyone?

the fucking oppositions and the thread starter.

now the garmen turn to be fucked. in times like these, all private home owners beware. you will be the first line to get fucked when the economy gets topsy turvy

hdbs can still hold and are pretty stable for now. the suckers are the private homeowners.

be smart. stay away from private homes. if you can't hold out, you will be the greatest losers. this garmen thinks this group of private homeowners ought to be penalized for putting good money in this tiny piece of land( talking about homeowners, not investors). from the looks of things, i do not believe the garmen is here to protect your interests. if that's the case, don't invest here. buy to stay if you must. only the bigger boys can sustain the real estate game in the long term.

unless there is a change, stick with hdbs. they are more stable.

good luck.

redbean said...

hdb is the backbone of our nation building. it gives the people a stake in the country. and this stake should grow in value overtime, gradually. i am not going to discuss about this asset becoming zero when the lease expires. so far the renewal process is taking care of this.

what we should guard is against high fluctuation in prices and asset inflation. the additional profit of $200k per unit in pinnacle is uncalled for. to big a difference. if there are 300 units to be sold at the new profit margin, it will mean another $60m in profit just because of market pricing. and who is paying? our children. making more money from the citizens. this kind of policy is not healthy.

Amused said...

Anon at 9:24

And you think rental prices won't go up with the increase in property prices? You think people want to pay more than 30% of their income for rent? Not every foreigner here is on Expat package. A lot of them have to squeeze 2-3 in a room.

I have news for you. The foreigners will still leave when the cost of accomodation gets too high for them.

Every bubble will burst eventually.
There is only two outcome: burst a small bubble and lose a little, or burst a large bubble and lose a lot (like what's happening with the sub-prime bubble).

Anonymous said...

let's wish for the collapse of the property market because those who accuse these folks of greed and stupidity for paying high prices also wish they suffer loss so that the accusers can later profit from their fall from grace like a house of cards. all shall be good when the accusers who accused others will realized their own greed and perhaps, stupidity?

let's wish the government will engineer a collapse of the economy so the people will always be beholden to their brilliance, their generosity with taxpayers monies and kindness.

as we go through all these bloodshed from money woes, we shall bless the rich because, with their millionaire salary and seated high above others basically unscathed from the ravages of an economic storm brought on by the rich and the brilliant, they can than transform themselves to be our eternal hope and savior as we gratefully feed off the crumbs that fall from their tables.

let's hope as a people, we will keep this going for another thousand years so our children and their children's children can also experience our enviable existence of the cycles of boom for a short period follow by doom for a long period at the mercy of our governments.

we shall all bless our rich elites and thank our lucky stars for their leadership that gives us this paradise we call home.

Anonymous said...

redbean think. the people who are buying into these FEW high end hdb flats are not stupid - mostly. most of them are not your regular average home buyers without LEVERAGE.

some of these buyers will be profitting from the sale of their parent's hdb. many upgrade that way in sg. to these people, they see value in these homes. we can't undo this part of the market yet. that's how business is done and you should know better.

lastly, why should this be an issue when there are many who can afford because of their special circumstances which permit them and we also know there are many others who can't afford but so what? have these people been deprived of a roof over their heads? there are plenty of homes available within their means. just don't look at those special blocks located in prime areas to give credence to your case.

there is no crime as long as there is stability.

i think that's what they are trying to achieve here. some kind of stability that's fair to the foreigners who work here too.

Anonymous said...

To each his own as long as we don't over price ourselves in the COMPARATIVE MARKET!

Nevertheless, the BEAST must be tamed!

redbean said...

overpricing? the next industry that is going to suffer this fate is the medical industry. the private hospitals know that their time is up. many are now setting up branches in cheaper neighbouring countries. bumrungrab is doing roaring business and will soon snatch away the bulk of our business.

Anonymous said...

The current recession is brought about by the mismanagement of real estate. Seriously, from what i gathered, these world leaders are still trimming the leaves, branches and tendering to the barks and shooing insects away with their swipes.Until they get to the ROOT cause, this global order will be more a bane than gain for the average joes and janes.


What locals ought to be angry at is the wealth created at the expense of the freedom to live a full and meaningful life for all.

A life not subjected to THREATS by the above ingrates out to exploit, no thanks to your highly paid leaders.This apply generally to the rest of the world.

Bunch of bloody suckers!

redbean said...

ambitious plan to be the best, the financial centre, at all cost.

an ant hill wanting to be a mountain.

Anonymous said...

Redbean;

if they cannot build a mountain for the country(big ideal) they can build one for themselves(bigger ideal).

It is damn shrewd to aim for common goods that end up serving ownselves!

patriot