Prices of resale HDB flats have doubled since 2007 under Mah’s watch

[Watchman]

Prices of resale HDB flats have doubled
since 2007 under Mah’s watch
January 6th, 2011 | Author: Editorial

The prices of resale HDB flats have grown
by 51.8 percent, or more than doubled
since 2007 under the watch of PAP
Housing Minister Mah Bow Tan, according
to latest statistics released by HDB (read here)

This means that buyers hunting for a
resale flat now can buy two flats for the
price of one before 2007.

The figure is hardly surprising – the
prices of a resale four-room flat is now
almost $400,000 with those in prime
districts like Toa Payoh and Bishan
commanding close to $500,000.

The explosion in prices is caused largely
by the failure of Mr Mah to anticipate
the expected increase in population via
immigration by building sufficient new
flats to meet the higher demand.

Only some 11,000 new flats were built
between the years 2006 and 2008 when
there were more than 100,000 new citizens
and PRs each year, leading to BTO flats
being more than 5 times subscribed.

To compound the problem, foreigners are
given Singapore PR in double-quick time,
some within weeks after which they are
immediately eligible to buy a HDB flat in
the open market.

With the median wages of Singaporeans
stagnant, it is almost impossible for a
young couple fresh out of school to afford
a resale flat which contributes to
Singapore’s low birth rate.

Despite the statistics showing otherwise,
Mr Mah is adamant that HDB flats remain
‘affordable’ to the majority of Singaporeans
even at today’s astronomical prices and
continues to blame home buyers for being
‘fussy’ and having ‘unrealistic expectations.’

 

[Leongsam]

Enhancing the value of assets is one of the primary functions of any top dog.

Mah is to be commended for a job well done.

Imagine the outcry if values had dropped 50% under his watch. It would mean that sinkies who had bought flats for $400,000 in 2007 would now find that they had LOST $200,000 of their net worth in 3 short years!

 

[Zombie]

The prices of resale HDB flats have grown
by 51.8 percent, or more than doubled
since 2007 under the watch of PAP
Housing Minister Mah Bow Tan, according
to latest statistics released by HDB (read here)

what does this mean? 51.8% = more than doubled

 

[Watchman]

It's those that cannot get their hands on the candy that are complaining . Lets make private housing hit 3 million each .

 

[Windsor]

It has more likely grown by 1.5 times the resale value. For example, during the year 2007, in Sengkang a corner 4-room (104 Sqm) mid-floor was sold between $240,000.00 - $280,000.00 is now being sold for about $400,000.00.

what does this mean? 51.8% = more than doubled

 

[jw5]

Enhancing the value of assets is one of the primary functions of any top dog.

Mah is to be commended for a job well done.

Imagine the outcry if values had dropped 50% under his watch. It would mean that sinkies who had bought flats for $400,000 in 2007 would now find that they had LOST $200,000 of their net worth in 3 short years!

The value of a property used for accomodation is not included in the calculation of net worth.
You ought to know that.

 

[Leongsam]

The value of a property used for accomodation is not included in the calculation of net worth.
You ought to know that.

While the family home doesn't yield an income and therefore does not qualify as an asset in businesses terms, it's still included in calculations of net worth as is the mortgage. If the house is worth more than the mortgage, you're in reasonable shape. If the mortgage is larger than the value of the property, you could well be on the verge of bankruptcy.

Mah has made sure that the latter is not the case. He deserves a medal for the astute management of his portfolio.

http://www.youngmoney.com/net-worth-calculator/

 

[jw5]

While the family home doesn't yield an income and therefore does not qualify as an asset in businesses terms, it's still included in calculations of net worth as is the mortgage. If the house is worth more than the mortgage, you're in reasonable shape. If the mortgage is larger than the value of the property, you could well be on the verge of bankruptcy.

Mah has made sure that the latter is not the case. He deserves a medal for the astute management of his portfolio.

http://www.youngmoney.com/net-worth-calculator/

I have read in many places that calculation of net worth excludes the value of the accomodation. That's because they assume that someone who realises the value of his property for cash would probably buy another home of equal or higher value.
Hence, if value of property > mortgage, the net asset is not included. But if value of property < mortgage, the net liability is included.

As for Mah, someone should tell him and his colleagues that they are not running a listed company or hedge fund. They are running a country, with a fiduciary duty to the ordinary citizens.
Nobody is saying that the asset values should drop by 50%, but public housing values should not also rise by 200 or 300% as a result of speculation and demand from foreigners, which makes buying a home very difficult for first time citizen home buyers.