2/27/2007

myth 118

Myth 118 New HDB flats sure to fetch higher value in resale market HDB flats are sold at subsidised prices, whatever that means. For many years, all new HDB owners would be able to sell their flats in the resale market for a profit simply because of the subsidy. And for that, HDB flat owners are expected to pay a levy when they sold the flat because they made a clean profit. Leong Sze Hian's letter of his HDB friend in the Today paper tells a different story. Bought flat from HDB in 2000 at $416,000. Current valuation is now $338,000. Can't even sell it at $336,000, ie below valuation. And better still, needs to pay a $50,000 resale levy to be eligible for a second HDB flat. Oh, his neighbouring flat which has been vacant for 6 years has been put up for sale by HDB at $273,200. Even if this is affected by the racial quota, the value is indeed shocking.

6 comments:

Anonymous said...

the health of our public housing resale market(ability to rebound) has always been the best indicator of our people's wealth and optimism. it is also a good measure of economic management.

Anonymous said...

Correction Mr Redbean. You only need to pay levy if you intend to buy another new flat from HDB. If you buy resale, or simply migrate with the profits, no levy is payable :)

Chua Chin Leng蔡镇龍 aka redbean said...

you are right on the levy. if he wants a second flat from hdb.

Anonymous said...

so, the only people who can actually profit from the subsidised flats are the quitters ? guess it says much about the state of the country when you have to go overseas to enjoy any profits. stay in the country and they'll simply take it away.

Ⓜatilah $ingapura⚠️ said...
This comment has been removed by the author.
Chua Chin Leng蔡镇龍 aka redbean said...

or those who have several properties and praying everyday that property prices should shoot skyhigh.