12/11/2008

Obscene profits at the Pinnacles

The craziness of the $200k increase in the price of the second launch of Pinnacle Duxton flats is again in the news. See Leong Kit wrote to The New Paper asking HDB to justify the hefty increase. Silence. I think this was casually raised in Parliament, or some MPs did asked a few questions about it and the answer was given. So case closed. The fact that it was raised in Parliament and no further follow up action is taken can be seen as an approval, that everyone in Parliament agreed with the increase. So it is an acceptable thing to do. So, all the kpkb in cyberspace will be pointless and there is no need for HDB to reply. And many like See Leong Kit still could not see the point and were asking for the costing. The costing is no longer an issue. It is market pricing. If HDB can provide data to show that similar flats are sold at those prices, that is good enough. OK HDB should at least put up some data to prove that similar public flats, not private flats are sold at those prices and how many were transacted. The logic of market pricing is not to be questioned any more. It is a govt policy. Oops, it is a HDB policy.

17 comments:

redbean said...

actually the profit is good. but i do not know if it is good for the buyers.

Anonymous said...

HDB property is the last bullish asset to increase singapore GDP price, even uncle bear is in market now. More good years.. golden age is here.

Anonymous said...

marking hdb to market is not wrong. becos when assets are cheap and service taxes, low, the standards of living will go south. i guess that is unacceptable.

Anonymous said...

Don't be surprised if HDB going to be get listed as private company soon. I see no way a HDB unit can be price at 1.5 million range if still under public housing.

Anonymous said...

Singapore is hell for the working poor. The dictatorial Singapore government never fails to pander to the idiosyncrasy of the rich and ignore the human rights of the working poor. The entire island is wired for the pleasure of the rich, the political system, the education system, the media and others, while the poor are ignored.

Francis Chua, Singapore

Donaldson Tan said...

I thought HDB, being the single biggest property developer in Singapore, basically sets the price for the market. By raising the HDB price, they also raise the price for private properties too.

Anonymous said...

If you look at the recently launched BTO project, it is also ridiculously priced.

Just a reminder, all the raw materials for housing have already came down. What is the justification for such a high price???

Anonymous said...

This is no kidding. Before 1965, Singapore was ran by a group of dictators. When PAP won the election in 1965, the PAP members themselves became the new group of dictators until now. The dictating culture in Singapore is strong. The democratic culture is weak. The majority of Singaporeans are village folks living in a city environment. That explained the lack of awareness of human rights. Village folks are easily threatened and manipulated. Some of the dictators themselves have the village folks mentality.

Francis Chua, Singapore

Anonymous said...

i think 1.5 mil comes too soon, but i imagine pinnacles could be the first hdb to cross the million barrier within 10 years. there is hope for all hdb dwellers.

redbean said...

when these flats is $1.5m each, our money value will go down as well. you do not really gain with this kind of asset inflation.

the problem is always the new buyers. they will be hard pressed to buy the next new flat.

and salary cannot just go up, especially for the workers. the usa is a good example. they have killed their steel making industry. now their auto industry is at risk of collapse all because of high salary and high costs.

inflating our property prices will destroy the value of our money. and the poor young couple is going to pay for their whole life time for it.

is it good? ask the young people that are coming into the job market and planning to buy a flat.

redbean said...

hi donaldson tan, welcome to the blog.

sometimes i wonder whether hdb is setting the price or the market? very confusing. like the chicken and egg, huh?

The Hermit said...

Well, redbean, HDB is the chicken that ask us to lay eggs for them.

redbean said...

ah ha, that's the wisdom of the hermit.

Anonymous said...

Just a few paragraphs that contain wisdoms.

Great reasoning, great thinking!

Anonymous said...

Did all of you seen Masterplan 2008 videos at www.ura.gov.sg.. that what I mean when wil a HDB unit going at 1.5 million.. world class neighbourhood.

Alex Tang said...

You know, after MSK's escape & the half a duck replies we got from the respective MP, I think we dont need to ask them anymore cos they will only reply with another confusing answer!! Till now, I still dont know if MSK is alive & hiding or what! They wont give us any straight answers cos I am sure they dont have any.

The setup is based on how much profit is being turned out & the most important factor is the bottomline. This goes for HDB, LTA, NTUC & the lots; it's no more about caring for the poor or fighting for the underdogs, everything has to be pegged with a $ sign. Being compassion doesnt generate profit & how much is a pound of care & respect? Zero!! I am tired of all these rubbish, it used to be once a while we get shit but now, it's like almost every few weeks, there's some mismanagement from certain agency & the person cant even give an answer to why it's happening!!

Now, my frightening question is, did HDB/LTA/URA/ invest in stocks & shares, just like the Town Councils!

redbean said...

hi alex tang, welcome to the blog.

in the case of msk, you will get a better answer from the media. oops, i mean medium.

on the issue of high hdb and property prices, it is only good for those who have already bought them and the old rich.

any of you out there who are just going to buy a hdb flat? try coughing out $500k or $400k if you have only worked for less than 5 years or even 10 years. imagine how the young couple going to cope with a $1.5m hdb flat when their salary is going to be so so.

but if papa have willed all his fortunes to you, then no worry. and you can even laugh at all the losers who are complaining about high hdb prices or a 10c increase in train or bus fare.