libra168
Today, 03:12 PM
"No country in the world treat their PR's better than us.Please check this up and stop complaining, you should help to promote peace and not create a fracas. Pr's should not get to buy HDB too because it's heavily subsidized by our Government."
The thing about subsidised HDB flat need further clarification :
1. PRs are not allowed to buy new flat from HDB unless spouse is citizen
2. Resale flat are not subsidised
EVEN in the case of new flat from HDB, the selling price is not subsidised, it is what HDB keep saying is "market subsidy" . If you have been following discussion of HDB "market subsidy" on this DB, you would have concluded correctly as with all other Forumers that "market subsidy" is no subsidy. HDB just pluck a condo market price in the vicinity and give a discount and call it a subsidied flat.
C'mon, can construction cost be different if the flat is in Queenstown compared with flat is Jurong West or Sengkang if they are both built in the same period of time by the same contractor ? Obviously the cost is the same but HDB price it much higher in Queenstown than Jurong West or Sengkang. A truly subsidised flat would mean it should sell at the same price regardless of location and with reference to construction cost, not with reference to fluctuating market price.
Both citizens and PRs are misled by the "market subsidy" concept to think that HDB flats are subsidised.
Posted by: bumibumi at Tue Feb 17 16:01:08 SGT 2009
[Nothing new here, but I want to address this because of the specifics of the example.
Yes, construction costs in Sengkang, Woodlands, and Jurong West should be about the same for flats built around the same time. So if you are a new flat buyer, where should you buy?
If you are a rational buyer, you would consider where you work, how easily or how long you need to travel each day to get from your flat to your workplace and factor that into your decision all things being equal.
But all things are not equal. Resale prices are not all equal and if you treat your flat as an investment (as a lot of Singaporeans do) you would consider which flat will appreciate more in value. If all the flats are "cost-subsidised" then flats in Woodlands and Jurong West will have very little demand. With "market subsidy" you pay more for flats in areas where resale prices tend to be higher, so net gain when you sell your flat should be somewhat related to your purchase price.
And it is specious to say that HDB peg market subsidy to condos. They would peg to resale prices as far as possible. If they were indeed pegged to condos, then the "subsidy" would be huge.
So no. A subsidy cannot be pegged strictly to costs alone and all new flats sold at the same price no matter where they are. There are market variations and flat prices have to reflect this or someone buying a flat in Woodlands, or Jurong West will feel very put out.
The true reason for runaway resale price is very simply the use of CPF to purchase flats on the resale market. Without CPF, most people will be hard press to offer anything beyond their savings and what they can afford to pay in mortgage installments.
The Govt seems to realise its folly and has started to slowly pull back on CPF, but at the same time they cannot be too obvious or affect the market too adversely. ]
Today, 03:12 PM
"No country in the world treat their PR's better than us.Please check this up and stop complaining, you should help to promote peace and not create a fracas. Pr's should not get to buy HDB too because it's heavily subsidized by our Government."
The thing about subsidised HDB flat need further clarification :
1. PRs are not allowed to buy new flat from HDB unless spouse is citizen
2. Resale flat are not subsidised
EVEN in the case of new flat from HDB, the selling price is not subsidised, it is what HDB keep saying is "market subsidy" . If you have been following discussion of HDB "market subsidy" on this DB, you would have concluded correctly as with all other Forumers that "market subsidy" is no subsidy. HDB just pluck a condo market price in the vicinity and give a discount and call it a subsidied flat.
C'mon, can construction cost be different if the flat is in Queenstown compared with flat is Jurong West or Sengkang if they are both built in the same period of time by the same contractor ? Obviously the cost is the same but HDB price it much higher in Queenstown than Jurong West or Sengkang. A truly subsidised flat would mean it should sell at the same price regardless of location and with reference to construction cost, not with reference to fluctuating market price.
Both citizens and PRs are misled by the "market subsidy" concept to think that HDB flats are subsidised.
Posted by: bumibumi at Tue Feb 17 16:01:08 SGT 2009
[Nothing new here, but I want to address this because of the specifics of the example.
Yes, construction costs in Sengkang, Woodlands, and Jurong West should be about the same for flats built around the same time. So if you are a new flat buyer, where should you buy?
If you are a rational buyer, you would consider where you work, how easily or how long you need to travel each day to get from your flat to your workplace and factor that into your decision all things being equal.
But all things are not equal. Resale prices are not all equal and if you treat your flat as an investment (as a lot of Singaporeans do) you would consider which flat will appreciate more in value. If all the flats are "cost-subsidised" then flats in Woodlands and Jurong West will have very little demand. With "market subsidy" you pay more for flats in areas where resale prices tend to be higher, so net gain when you sell your flat should be somewhat related to your purchase price.
And it is specious to say that HDB peg market subsidy to condos. They would peg to resale prices as far as possible. If they were indeed pegged to condos, then the "subsidy" would be huge.
So no. A subsidy cannot be pegged strictly to costs alone and all new flats sold at the same price no matter where they are. There are market variations and flat prices have to reflect this or someone buying a flat in Woodlands, or Jurong West will feel very put out.
The true reason for runaway resale price is very simply the use of CPF to purchase flats on the resale market. Without CPF, most people will be hard press to offer anything beyond their savings and what they can afford to pay in mortgage installments.
The Govt seems to realise its folly and has started to slowly pull back on CPF, but at the same time they cannot be too obvious or affect the market too adversely. ]
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