Singapore property Buyers - Investors Beware : MM Lee says HDB prices should rise

Singapore Property Buyers - Investors Beware: MM Lee says HDB prices should rise

Contributed by: www.PropertyBUYER.com.sg

MM Lee's words often move markets. Afterall, MM Lee is often see as the supreme commander of Singapore.

Singapore Property Buyers may want to note that MM Lee often practice tough love. If you want property prices to stay low or drop, then prepared to have a third world Singapore.
If he positions thing this way, then the answer is, we want the economy to grow. And as a consequence we are wishing that property prices grow.

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HDB flats will be more expensive. “HDB flat value will rise as long as economy grows: MM Lee, By Asha Popatlal, Channel NewsAsia 13 December 2009”

“Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country's growth - if the country is doing well, property prices will go up.
But if the economy goes down, unemployment goes up but incomes and property values decline.”

So you can almost forget about HDB prices staying cheap and affordable. Poor people can have harder lives if they can't keep up.

SUPPLY AND DEMAND OF HDB FLATS IN SINGAPORE

If the total number of physical properties remain the same and consumers are making more money, and you do not build more HDBs then you have a problem.

More money and people needing housing chasing after a limited number of will end up in HDB prices shooting up in price.

So if you finally earn much more and everyone else is also earning much more, then the extra money you have will not be able to buy you more goods and services. This is because of inflation. If it is not HDB prices being more expensive, then it is others, food, fancy restaurants, cars, travel, foreign goods, etc.

HDB as a result wants to be able to price their homes using resale properties as standard.

PRIVATE Property House owners Investing in HDB Sustains HDB VALUE

Have you any idea that property owners who own private condomimiumns can buy HDB flats?

By allowing Singapore property buyers who owns private estates to buy HDB flats, the prices of HDB should improve. Though there is at the moment no meaningful date to evaluate. The segment of private property owners buying HDB flats may still be insignificant, as our contacts with many property buyers and people who refinance with us did not show us such cases.

We really hope that HDB, together with it's land issuing body can keep close to it's Social charter to provide cheap and affordable housing to Singaporeans and not view itself as a profit and loss centre.

HDB gives the impression that it is keen to get in on the hot property action and maximize profits.

Despite the fact that in most economies, it is normal to increase prices when you earn more. We were hopeful that things could be different and more compassionate in Singapore.

The next issue, we will look at whether HDB supply is enough in the face of massive increase of foreign immigration into Singapore.

What is our worry for Recent Property Purchasers?

In the case of a new graduate couple making a total domestic income of $4000. The HDB real estate charges for a four room HDB flat is easily $400,000. This is 8.33 times of yearly income.It is essential for salary to keep pace along with the raise in HDB property prices.

Not only does HDB seem interested in your money, dishonest property agents are also on stand-by to sell you stuff.

After that, there are hundreds of Singapore property loans to sort through. Sometimes dishonest property agents even bring you home loan application forms and tie up with bankers as well as lawyers which will give them a commission. These conveyancing lawyers having to pay the dishonest property agents, then make it back from you by charging higher conveyancing prices for your home loans.