To celebrate or to kick asses?

HDB resale prices up another 3.8% for the second quarter. Private housing up 5.2% for the same period. Analysts are revising the annual increase to 12-15%. This means that HDB owners will have a paper gain of more than 10%. A $500k property will appreciate by $50k, $400k property by $40k. Correspondingly the property tax next year will be up. To keep pace with the rapid rise in price of HDB flats, buyers must have pay increases of the same percentage just to stay even. Those who have lower pay increases will find the price running away faster. For existing HDB owners, getting paper windfalls, shall they celebrate or cry? For those who have to buy resale flats, there is only one option, pay more. So, shall the Minister in charge of housing be given a big bonus or a big kick in his ass? It all depends on whether one is benefitting from this glorious rise in prices or having to pay more.


Wally Buffet said...

I would say he gets a kick on the ass plus a peck on the cheek, depending on whether you are a buyer or a seller.

Christ, this place is becoming like a circus.

Chua Chin Leng aka redbean said...

We have done many things right and credit must go to the govt.

But lately all this craze about high prices, high salaries and high inflation, high population growth will lead to a point of no return and the collapse of the house of cards.

Dr Doom said...

For the HDB home 'owners', do the only sensible thing left to do. Cash out of your overpriced units while the market is still buoyant. If you have the means, take that money overseas to start a new life. Otherwise, simply rent. You will be in a much better position than those who stubbornly cling to the misguided notion that property values can only go up when the inevitable crash comes.

Anonymous said...

Sigh..hope what is left of the GST Credit can cover the increase in property tax next year

Chua Chin Leng aka redbean said...

Hi Dr Doom, Welcome to the blog.

Some HDB owners thought they got a good deal by selling into profits. But whatever they got could not buy them anything better.

The only people benefitting from the upward spiralling of property prices are those sitting on several properties. When the time comes, they will sell everything and leave this place for good with money that can buy them mansions and last forever in some foreign land.

The HDB buggers could sell and make a little profit that would not get them very far other than Batam and Bintang.

Anonymous said...

Sell, rent and wait.

So, in this game, who really benefits? The rich who have other homes to live in while waiting for the next wave will really benefit.

Those who have only their pigeon holes can also sell, but renting from HDB is out of the question. Furthermore, with the profit they made, they probably have to settle for a smaller flat if they were to buy again in the open market.

So, pigeons will remain as pigeons, no matter how high they aim to fly.

Matilah_Singapura said...

Onr thing good about this mess with public housing is that nature -- in the long run -- has the last laugh.

Public housing was created on the idea of stealing the land and neglecting market forces.

Eventually market forces catch up -- 10, 20...maybe even 50 years -- it doesn;t matter -- you can't re-distribute wealth/value and hope to get away with "Cheap".

It's always entertaining to hear people scream for "justice" when it was themselves believing in myths that fucked them up in the first place.

Chua Chin Leng aka redbean said...

The developers are trumpeting that public housing could reach $1000 psf. I don't believe in them, not when the workers are supposed to be CFB.