By Khalil Adis
[Khalil Adis a former editor of Property Report. He now writes for Property Report, Property Guru and Temasek Review]
The rising number of cash rich immigrants to Singapore is pricing out first time Singaporean homeowners from the HDB resale market. Meanwhile, the HDB has been slow to react in releasing new supply in the market.
Can the average Singaporean really afford public housing in Singapore? Has the Housing Development Board (HDB) lost sight of its purpose? A recent news report that the cash-over-valuation (COV) for a three-room HDB flat in Toa Payoh which was transacted for a record S$70, 000, has had Singapore’s online community debating just that, with some concluding that HDB flats have indeed become far too expensive for the first time home buyers.
Although figures on the median COVs on the resale market for the third quarter of 2009 are not yet available on HDB’s website, this $70, 000 COV is the highest so far (for a three-room flat) since the HDB started tracking median COVs in the resale market since the second quarter of 2007.
However, that is just the tip of the iceberg. Property analysts are expecting COVs for the rest of 2009 to continue increasing due to strong demand and a lack of supply.
“Increasing cash-over-valuation is a reflection of greater demand than supply. The recovering economy and the fact that private properties are also on the rise, has resulted in this greater demand,” says PropNex chief executive officer, Mohamed Ismail.
The rising COVs are a cause of concern among Singaporeans, especially since the prices for HDB resale prices are now at a new peak.
Read rest of article here:
http://www.temasekreview.com/2009/10/12/home-affordability-the-hdb-versus-the-public/
[Khalil Adis a former editor of Property Report. He now writes for Property Report, Property Guru and Temasek Review]
The rising number of cash rich immigrants to Singapore is pricing out first time Singaporean homeowners from the HDB resale market. Meanwhile, the HDB has been slow to react in releasing new supply in the market.
Can the average Singaporean really afford public housing in Singapore? Has the Housing Development Board (HDB) lost sight of its purpose? A recent news report that the cash-over-valuation (COV) for a three-room HDB flat in Toa Payoh which was transacted for a record S$70, 000, has had Singapore’s online community debating just that, with some concluding that HDB flats have indeed become far too expensive for the first time home buyers.
Although figures on the median COVs on the resale market for the third quarter of 2009 are not yet available on HDB’s website, this $70, 000 COV is the highest so far (for a three-room flat) since the HDB started tracking median COVs in the resale market since the second quarter of 2007.
However, that is just the tip of the iceberg. Property analysts are expecting COVs for the rest of 2009 to continue increasing due to strong demand and a lack of supply.
“Increasing cash-over-valuation is a reflection of greater demand than supply. The recovering economy and the fact that private properties are also on the rise, has resulted in this greater demand,” says PropNex chief executive officer, Mohamed Ismail.
The rising COVs are a cause of concern among Singaporeans, especially since the prices for HDB resale prices are now at a new peak.
Read rest of article here:
http://www.temasekreview.com/2009/10/12/home-affordability-the-hdb-versus-the-public/
