let's ask ourselves why more younger Singaporeans are renting these days if HDB are so affordable?

[micromachine]

One of the top reasons young Singaporeans turn to the rental market is cost. For some, it is the only way they can afford to move out of the family home since a property purchase is out of their reach, especially for most singles just starting out in their careers.


The PropertyGuru Singapore Consumer Sentiment Study H2 2022 found that insufficient savings to purchase property was the top reason younger Singaporeans turned to the rental market. The 22 to 29 age group displayed this sentiment most strongly.


This is unsurprising as young, unmarried Singaporeans are essentially locked out of the HDB market, which requires them to apply as a couple or family unit, or wait until they turn 35.


The only option for unmarried Singaporeans under 35 looking to buy property is to turn to the private property market.


However, private property is prohibitively expensive for many.

More at https://shrtcô.de/Xcy6Fj

 

[laksaboy]

Buying a HDB flat is a myth. You're leasing.

Also, some people love the 'nomadic' lifestyle. Rent and stay a couple of years, then move elsewhere.

 

[Cottonmouth]

Can they buy HDB if they are 22 to 29?

 

[Boliao]

Simple Math for financial planning

Real cost of buying = Cash upfront * 2.5% (CPF interest you could have earned) + Mortgage interest (you need to payable) + Principle divided by number of years of lease (depreciation)

If rent is greater than real cost of buying, rent. If rent is lower than real cost of buying, buy. Of course, all these could be negated by capital appreciate of your lease but at the current pricing, the room for appreciation is really smaller compared to potential losses.

 

[bobby]

Renting a HDB is the same as buying a HDB flat.....

 

[Boliao]

In short, price has risen to a point where it makes more financial sense to rent, than buy.

 

[mojito]

In short, price has risen to a point where it makes more financial sense to rent, than buy.

Yet more new homeowners are buying at a much higher price. Some thing just don't add up huh.

 

[gingerlyn]

Why do you need to own million dollars hdb when hdb rental nowadays are below 3000$ a month ?

 

[tanwahtiu]

Need US to destroy SEA like Ukraine...

 

[blackmondy]

Need US to destroy SEA like Ukraine...

Much better to destroy Tiong-cock, the root of all evil.

 

[Boliao]

Yet more new homeowners are buying at a much higher price. Some thing just don't add up huh.

Gov controlling supply of homes to jack up property prices; therefore indirectly locking in more CPF forever. Look at those HDB built in 1970s, all calling 20% higher than last transacted price when they should be depreciating 20% (based on HDB's own stats/ projection in 2019). The silence from the Gov is deafening.

Then again, both LHL and LW have already warned that HDB will depreciate to $0 at the end of the lease.

 

[CPTMiller]

In short, price has risen to a point where it makes more financial sense to rent, than buy.

House rents is no longer cheap compared a decade ago. Now foreigners push up the rent market .

 

[bushtucker]

They are following the jiuhu workers who only rent individual rooms instead of the whole apartment. So much cheaper than owing money to hdb and cpf for 20 to 30 years.

 

[A Singaporean]

Gahmen has made it very clear and Sinkies are too dumb to understand. Poor Sinkies please fuck off, gahmen has no time for you. They are busy welcoming top talents with high paying jobs and Sinkies can help by not distracting them. Which part the gahmen's message you still do not understand?