WILL RAISING OF HDB INCOME CEILINGS AFFECT HOME PRICES? part 3

WILL RAISING OF HDB INCOME CEILINGS AFFECT HOME PRICES?

Part three - 3

HDB MEDIAN RESALE PRICES

HDB New flat prices are not lodged through Caveats. Data is too granular. And our enquiry with HDB ended with directing us to a HDB Annual report, which gives us some rather granular data. These data are too coarse to be used for any meaningful study or property research.

[caption id="attachment_320" align="alignnone" width="610" caption="Hdb flat supply statistics"][/caption]

(HDB Key statistics 2010)

And since we cannot get data on that, we can only infer.

“Before the change, a couple's combined income had to be below $8,000 a month for them to qualify to buy a BTO flat from the HDB, which is typically 20 to 30 per cent cheaper than a resale flat.”

(PMO,
http://www.pmo.gov.sg/content/pmosite/mediacentre/inthenews/primeminister/2011/August/HDB_raises_income_ceiling_to_10000.html
)

According to Prime Minister’s office, new HDB BTO flats are typically 20 to 30% cheaper than a resale flat.

And HDB median resale flat prices can be found here
(HDB, http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatMedianResalePrices?OpenDocument#Latest)

RESALE FLAT INCOME CEILING

There is no income ceiling for buying a resale flat

(http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatPublicScheme?OpenDocument) unless you are applying for a housing grant or a HDB loan.

Without an income ceiling in eligibility in buying Resale HDB, together with more demand from an increasing number of Permanent Residents (PR) each year, this causes the first time Singaporean buyers to be priced out of HDBs due to resale prices rise.

Population (Singstat) in '000s.

Year Total Population Singaporeans + PR
2004 ----------- 4,166.7 ----------- 3,413.3
2005 ----------- 4,265.8 ----------- 3,467.8
2006 ----------- 4,401.4 ----------- 3,525.9
2007 ----------- 4,588.6 ----------- 3,583.1
2008 ----------- 4,839.4 ----------- 3,642.7
2009 ----------- 4,987.6 ----------- 3,733.9
2010 ----------- 5,076.7 ----------- 3,771.7
(Census)

However this means that their only recourse is new HDB flats. But New HDB flats have been constricted in supply and HDB prices go crazy.

Singapore citizen grows (native) grow at a rate of 0.8 to 1% a year, excluding new citizens. It is obvious that by lumping Permanent Resident together with Citizen, the "Singapore residents" grows much faster.

Contact Property Buyer Mortgage Consultants for Customized Property Buying Research (fee based) or Contact us for mortgage advice (Free).

Continue on part 4.
http://propertybuyer.com.sg/articles/hdb-flats-and-loans/will-raising-of-hdb-income-ceilings-affect-home-prices-part-4/