What HDB resale price rise look like and the serious implications....

[TopSage]

Double in 6 years.

Here is the US housing bubble and subsequent collapse.

The US housing prices doubled from 1994 to 2006, taking abt 12 ears.

Consider these facts:
HDB doubles in 6 yrs, US housing bubble saw doubling after 12 years.
The average price of a landed US home sold today is US$152,0000 [Link]
This home is a landed property with 3 bed room such a home costs S$3M in S`pore.
The minimum wage in USA is US$7 per hr abt $8.5 per hr.. Hourly wages in a Singapore fast food restaurant is about $5.5 per hr....just to get some sensing...
more than 300,000 Singaporeans and permanent residents who earn less than S$1,500 a monthLink their pay rose an average 1-2% during the period HDB prices doubled.

Median household income rose 41% (nominal) during the period when HDB flats more than doubled. i.e. the increase in housing prices was more than double that of rise in nominal income. All the extra money to buy HDB came from rising household debts fueled by low interest rates.

Can someone tell me why trouble is not brewing under such a scenario? The high house hold debt. The relative housing price gap between us and USA, does it affect business costs and competitiveness? Our businesses have to pay far higher for rentals and business costs and our workers have to pay much more for housing and forced to take up more debt to house their families. The situation is only sustainable when we have nearly full employment and low interest rates both of which do not last forever. with such high costs, then only way to remain competitive was to import cheap labor and keep wages down. That was also not a sustainable plan.

At the macro level when housing was on the rise, it fuel bank borrowings, construction boom and property related activity that created economic growth even as exports were weak.....if the reverse takes place, the drag on our economy will be high....and long lasting as a vicious down cycle takes hold.

Housing bubbles typically mark last phase growth in US, Japan,Europe, ....looking rosy and well managed on the way up ...then leaving a mess on the way down.

 

[gingerlyn]

Topsage
I would appreciate if you can analyze this further and how the drop in HDB resale would impact private properties and various externalities effects

 

[Narong Wongwan]

No need to analyse.
US govt unlike the SG govt can manipulate and control tiny sinkie property market.

 

[The_Hypocrite]

Comes down to demand n supply,,,in usa supply outstrip demand,,,in spore maybe fuck up areas like sengkang, punggol, woodlands might b affected due to not being a good location,,,but if popn continue to grow n u r in established mature estates ..price might slow down but it wont go down

 

[gingerlyn]

Comes down to demand n supply,,,in usa supply outstrip demand,,,in spore maybe fuck up areas like sengkang, punggol, woodlands might b affected due to not being a good location,,,but if popn continue to grow n u r in established mature estates ..price might slow down but it wont go down

will population continues to grow at this rate if PAP regime folds up?

 

[TopSage]

Comes down to demand n supply,,,in usa supply outstrip demand,,,in spore maybe fuck up areas like sengkang, punggol, woodlands might b affected due to not being a good location,,,but if popn continue to grow n u r in established mature estates ..price might slow down but it wont go down

The PAP already knows the dynamics...and knows it needs to keep expanding the population on the limited land to hold prices up.
That is why no matter what happens it clings to "more foreign influx is good" mantra...because a slow down will not allow prices to hold
at artificial prices. HOWEVER, can you keep creating jobs as cost of business rises, this is done only by keeping wages low and...so you will also find limits to this.

 

[po2wq]

... Double in 6 years ...

6 ears ago ... 2007 ... ear ah loon won erection as pee em ... ear ah loon started woking like a crab ...

ah loon n his jingang n their cronies ... huat ah! ...

 

[po2wq]

The PAP already knows the dynamics...and knows it needs to keep expanding the population on the limited land to hold prices up.
That is why no matter what happens it clings to "more foreign influx is good" mantra...because a slow down will not allow prices to hold
at artificial prices ...

once u started taking steroids, u muz continue ... wat happens wen u stop taking steroids abruptly? ...

 

[enterprise2]

once u started taking steroids, u muz continue ... wat happens wen u stop taking steroids abruptly? ...

Helloo!! We r talking 6.9m and more! And they r now talking about deep underground caverns. Soon they will take out golf courses and airbases. Then maybe reclaim land till Raffles lighthouse. After that, maybe we invade Johore.... U see the sky the limit!!

 

[escher]

once u started taking steroids, u muz continue ... wat happens wen u stop taking steroids abruptly? ...

That meant hooting times will be coming very very soon

HOOT HOOT HOOT HOOOOOTT

STRING THOSE BASTARDS FROM LAMP POSTS

 

[TopSage]

once u started taking steroids, u muz continue ... wat happens wen u stop taking steroids abruptly? ...

there is this thing known as roid-rage after taking steriods for too long....anger start to flare up in unpredictable spontaneous manner. That is why we see riots and strikes.

 

[Satyr]

there is this thing known as roid-rage after taking steriods for too long....anger start to flare up in unpredictable spontaneous manner. That is why we see riots and strikes.

Then the PAP will tell WP, "nah, I give you".

 

[halsey02]

Helloo!! We r talking 6.9m and more! And they r now talking about deep underground caverns. Soon they will take out golf courses and airbases. Then maybe reclaim land till Raffles lighthouse. After that, maybe we invade Johore.... U see the sky the limit!!

Airbases, did you not read?, Paya Lebar Airport moving to Changi, to free restrictions of building heights & plenty of land too, go take a look at the map, that include Defu Ind Estate..huge!. Bidadiri, upcoming huge public housing project..PP will become a GRC member..

 

[rushifa666]

manipulating to prevent a price correction will only create a bigger fallout as the bubble gets bigger. Low interest for so many years is simply madness. Add to that the brainless cunts who bought in at the inflated prices. They only think of zero loss. Not realising that if it breaks they will all jump down from the highest building. Not that thats a bad thing, mind you

 

[johnny333]

By the time the PAP gets kicked out, Spore may be an impossible place to live in. We'll have millions of foreigners here & many old Sporeans who are asset rich but without an income. Many may chose to go to bedok after losing everything at the casinos.

All those expensive projects that the PAP have saddled Sporeans will be expensive to maintain e.g. large MRT network, gardens in the sky, over sized government, over sized military,....

 

[rushifa666]

Dont buy a house now. You will regret it. Dont even bid for one. Because it will be pegged to current price. My friendly warning

 

[ykhuser]

Airbases, did you not read?, Paya Lebar Airport moving to Changi, to free restrictions of building heights & plenty of land too, go take a look at the map, that include Defu Ind Estate..huge!. Bidadiri, upcoming huge public housing project..PP will become a GRC member..

defu industrial is a waste of lane.
knn drive my car there damm fucking crowded.
should build multi story to replace all those single level industrial.

 

[LeMans2011]

*Yawn*. People shouldnt read too much thrash written by spinners aka analysts. The answer is Singapore is not US. It is a tiny red dot where everyone from north south east west just love to make it their home. Furthermore the migration flow from East to West is now reversing... everybody wants to work and live in Asia because that is the growth region in this century. Singapore is obviously one of the most comfy place to live if you have money or career. Obviously the economy is population fueled and will meet its end one day. But my bet is the day is not happening in my lifetime.

 

[The_Hypocrite]

One other thing about the USA GFC..the US banks were lending to any tom dick and harry,,,whereas in spore,,and Oz,,,th banks are more stringent in their lending criteria,,,u no job etc,,,the bank will tell u to F off,,,in USA,,banks lend to anyone,,,,,In Spore the gahmen have greater control and please note the population in spore is expending...despite how fuck up it is in spore,,,pinoys, ah nehs, ah tiongs still want to come here,,,,do these people go to 3rd world countries? do they go to indon?