During the last term of Mah Bow Tan, there was continuous good news of property prices and that they were very affordable by the way they computed affordability. When Boon Wan took over, there was continuous good news of property prices too, from building more flats to some changes in HDB policies and priorities for first timers. And the people were equally happy.
Yesterday there were two charts in the media, one on property price index over 11 years and one on HDB resale price index for 5 quarters, 2 from 2010 and 3 from 2011. The first chart showed that property price index was almost flat from 2001 to 2006. Only in 2007 that it started to shoot up and this uptrend has been consistent till today for HDB resale price. What this means is that the prices are still going up at the same pace, no letting up.
From a base of 172 in the 4th quarter of 2011, the HDB resale price index has gone up by 1.6%, 3.1% and 3.8% in the third quarter of 2011. Yes, it is going up, regardless of the number of new flats that Boon Wan is going to build. And the good news is ‘Good progress in meeting flat demand.’ Nothing about the price.
Using the 172 base, HDB resale price till the third quarter has gone up by 15.1 points to 187.1 or 8.8%. By end of the year it could easily cross the 10% mark. Again looking at the first chart, the index was at 150 at end of 2009, or an increase of 37.1 points or 24.7% by the third quarter of 2011. These must also be good news for the property owners. For the buyers or potential buyers, it can also be good news as it means that at whatever price they are going to buy their new flats, they can expect the price to go up by more than 10% per annum or doubling the price in 10 years. In reality, with the compound growth effect, the price could easily double in less than 10 years.
What more good news can one ask for? And better still, with a decreasing lease life but rising prices.
8 comments:
Singaporeans who are concerned about property prices on the rise should do themselves a favour.
How ?
Buy the property NOW, one should be able to see the many condos all over the island and the promotions in the media and the flyers(pamphlets) delivered right to the doorsteps.
We had ST Journalist who felt that Sin Developers were not aggressive in marketing their properties overseas. Our Sin Government wants/needs foreign settlers to keep the GDP going.
There are many aliens who want to have a safe haven for their monies and their own safeties.
So, the properties in this tiny island can never be able to cater to all the demands, there will always be demand for them. How can anyone expects prices to come down?
AND HOW CAN THE MINISTER OF NATIONAL DEVELOPMENT bring down property prices when so many buyers are queuing, some even for days and nights just to buy?
Singaporeans should be grateful that our politicians have given Singaporeans priority.
Yea the Gahmen + Cronies and foreigners aka PRs
benefits the most and laughing all the way to the bank.Doubling after a decade in a pigeon hole .take the money, balek kampong buy big bungalow and retire.What a fool local dafts.
All the rise in property prices does not benefit the man in the street.
I do not want to comment on private and resale HDB prices. As these are agreed by willing buyers and sellers.
What I feel short change is the price of direct purchase from HDB;
1. selling price - how can you considered it subsidised if its tagged to market price? BS!
2. size - the naming remain, 4 rooms. 3 rooms and so on.. But the actual area keeps shrinking by the day.
3. Location, do they build at convenient location? Not every young couple can or want to spend money on a car. Our public transport is not efficient even at convenient location, worse if the location is not.
4. BTO orders, why need to wait for 3 years and even balloting for on its very difficult. Are they going back to the queing 1st come 1st serve service again ?
5. Lastly, the HDB grant for 1st timer if they prefer to buy resale was 40k before MBT took over. It was reduced to 30k when the property market dipped. But now with the sky rocketing HDB price, why isn't it increase back to 40k or higher ?
I am not affected by this crazy stock market as i am content to live in my fully paid 4 room HDB flat. But I do worry for my kids. Can they afford their own roof when their time come ?
I am also worried that when the property bubble burst, we will have our own sub prime crisis with foreclosures and people living on the beaches...
Hsq
I think this scenario will continue so long as the PAP rules and immigrants keep flooding in.
The sad part is that it benefits few but causes hardship for many. And the sadder and ironic part is that those that benefit the most are the rich while those that suffer are the poorer sector of Singaporeans.
What is happening is very wrong, and with leaders choosing to turn a blind eye and a deaf ear to the problems, something will have to give in time to come.
Someone said, for those who have more will be added unto them. Not that the leaders did not know what is happening, they are living through this mantra. They will keep adding more to their own wealth. The widening income gap is natural and healthy and it can't be helped.
Hi Hsq, welcome to the blog.
The masses are the no brainers. What the masses are complaining are non issues or superficial issues. The super talents know everthing the masses said or are complaining about.
They have bigger schemes fo things that the masses could not understand.
"They have bigger schemes for things that the masses could not understand"
I thought only the Arab masses could not understand so they started Arab Spring. Now, some American masses are beginning to fail to understand their predicament and so they are going to start 'American Spring'?
In the North East Zone of Singapore we already have a publication called 'Spring'. Now what kind of other spring are we going to get if this continues?
Sin will have Summer forever with some 50 Year Once little floods that ensure no drought will ever happen.
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