Once again, I find myself in the position of educating ignorant fellow sinkies on how the real market in singapore REALLY WORKS. Take it as gospel truth from me, and everything will fall into place.
Why HDB prices remain high has nothing to do with scarcity of land, potential for bank failure if there is a lowering of prices, etc. Non of these reasons or even combination of reasons can explain the high price except one.
There is only one reason. The MIW, PAP elites, inner circle, Kwa and Lee family, etc. are collectively, the largest property owners in S'pore. Its true they don't buy HDB flats, but they buy landed property, high end luxury condos, private condos, etc. The market price for these private property is set by HDB flat prices in a very direct manner. For example, if you could buy a brand new 5 room HDB flat for $100,000, do you think a private developer can ask $950,000 for the same size condo, in the same general area? Its only when you have DBSS flats nearing $800K plus, and even regular HDB flats not unusual to sell for $400K plus, than you see developers can ask for $1million for their condos. In the mind of a buyer, the differential prices for a private flat versus a high end HDB flat is not so great that it precludes them from buying the private condo. If the price differential was $850K in my example above, u will see the market for private flats fall like a rock. Lower prices will trigger a ripple effect all the way down the line to landed properties. The PAP are not interested in seeing their personal property portfolio decline like a rock. This is why there is no estate tax in singapore, otherwise, when PAP elites like Gecko die, people will be shocked how many properties they have and how much taxes they must pay. Its also why the PAP will not disclose their private holdings in stocks, bonds and real estate.
And that is the gospel according to PAPsmearer.
