Resale flat prices continue to climb despite PAP’s “cooling measures”

[Watchman]

Resale flat prices continue to climb despite PAP’s “cooling measures”
October 1st, 2010 | Author: Your Correspondent

Despite the desperate “cooling measures” implemented by the PAP regime two months ago to stabilize the property market, the prices of resale HDB flats continue to climb, fueled by the relentless influx of foreigners.

According to latest figures provided by the Urban Redevelopment Authority (URA), the prices of resale flats increase by 4 percent in the third quarter, not much different from the 4.1 percent in the second quarter though the number of transactions drop by 10 percent.

The prices of HDB flats have sky-rocketed in recent years due to limited supply of flats being built in the face of a growing population as the PAP opens the flood-gates indiscriminately to foreigners all over the world.

The lax immigration criteria of giving Singapore PRs to foreigners compounds the problem as PRs are allowed to buy resale flats which they sell for a hefty profit when they leave Singapore years later.

The number of PRs who have benefitted from the PAP regime’s “generosity” over the years remain unknown.

The astronomical flat prices of today have caused many young Singaporeans from postponing marriage and starting a family of their own, which is largely the fault of the PAP regime.

Only 3,183 flats were built in 2008 when Singapore accepted 20,000 new citizens and 90,000 PRs who were allowed to purchase resale flats in the open market by the PAP regime.



[Source: HDB Financial Report 2008/2009]

As there are insufficient new flats being built to meet the demands of both Singaporeans and the new citizens, many have to purchase flats in the resale market, thereby jacking up prices in the process.

Below is a graph illustrating how the rise in the prices of resale flats coincides with the rise in the number of foreigners in Singapore between the years 2000 and 2008, courtesy of Kojakbt, the moderator of 3in1kopitiam:



With the inflow of foreigners continuing unabated, prices of resale and BTO flats are unlikely to drop anytime soon. They will most likely fall two to three years later when the new flats being built now are completed.

Singaporeans should not be deceived again by the latest “wayang” put up by the PAP regime to sweeten the ground ahead of the next general election as admitted by Mah Bow Tan himself.

 

[besotted]

The effect will show up in the final number for the third quarter. Today's announcement is a preliminary estimate.

The measures were announced at the end of August - much of the period covered was therefore before the announcement.

When you have a half-baked correspondent who is biased, this is the kind of article you get.

Want to say not enough housing, just say so, 90% will agree with you. BUt when you use the data in a wrong way, you just look damn cock.

 

[Shaven]

The prices will more likely stabilize than drop. Come to think of it, If you're an owner of an 5 room HDB flat who fulfilled the MOP and prior to the Aug-30 cooling measures would you sell knowing you can rent it out for $2.8k/mo as there are more renters than buyer? No cooling measures will make the prices of HDB drop as the case is about demand over supply, in this current situation there are more demand than supply.

 

[silverfox@]

You need time to see the real impact. Less than 3 months hard to see much. The difference would be felt 1st-2nd quarter of 2011.

End year and early year would reduce transactions by quite a bit

 

[ChaoPappyPoodle]

You need time to see the real impact. Less than 3 months hard to see much. The difference would be felt 1st-2nd quarter of 2011.

End year and early year would reduce transactions by quite a bit

You IDIOT! It's the cost of HDB flats that are an issue NOT the number of transactions! Everything you say and do you have to commit at least one lie!

Prices have increased as the report says. As your PAP masters are continuing to import about 100,000 new foreign workers and build insufficient flats, you can be assured that prices will continue to rise.

:oIo: :oIo: :oIo:

 

[silverfox@]

The prices will more likely stabilize than drop. Come to think of it, If you're an owner of an 5 room HDB flat who fulfilled the MOP and prior to the Aug-30 cooling measures would you sell knowing you can rent it out for $2.8k/mo as there are more renters than buyer? No cooling measures will make the prices of HDB drop as the case is about demand over supply, in this current situation there are more demand than supply.

The problem now is HDB is regulating on those owning HDB flats with private property. If you rent out a HDB, you got to stay somewhere too. Pte property or rent another HDB flat?

Previously it was overwhelming demand. Now its just real demand. Once transactions start dropping, prices will drop around 10-15% based on what the market was calling previously.
Example a $450K flat calling prev would probably drop to $400K.