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5-room Marine Parade HDB flat asking for nearly SGD$1 million dollars
February 1, 2010 by admin
Filed under Headlines
Written by Our Correspondent
The day when HDB flats will cost no less than $1 million dollars may be closer than what Singaporeans think.
A property agent has put up a 5 room HDB flat in Marine Parade for sale at a shocking price of $990,000 on an internet property portal:
The previous record price paid for a HDB flat is $739,000 for a 5-room flat also in Marine Parade last year.
Though Singapore was mired in recession in 2009, prices of resale flats continue to climb by 8.2 per cent:
The sky-rocketing prices are fueled largely by limited number of flats built between the years 2006 – 2008 coupled with the large influx of foreigners into Singapore during the same period of time.
Only 3,183 new flats were built in 2008 when there were over 90,000 PRs and 20,000 new citizens in the same year:
[Source: HDB Financial Report 2008/2009]
As public housing is a basic necessity in Singapore, many have no choice but to pay the price set by HDB, the sole provider and seller in Singapore.
Despite widespread frustration, worries and resentment on the ground, the ruling party appears to be unfazed by the prospect of a property bubble emerging.
Prime Minister Lee Hsien Loong said recently that his government does not have any control over the prices of resale flats:
“These resale prices are set by individual households who transact flats on a willing buyer, willing seller basis, and are affected by movements and sentiments in the wider economy, including the private property market. Hence, resale prices of HDB flats will fluctuate from year to year,” he explained.
National Development Minister Mah Bow Tan, who is bearing the brunt of criticisms over his inaction to put a stop to the escalating prices promised to “monitor” the situation carefully.
Though he acknowledged that some people may be “adversely” affected by the housing policies, he is adamant that they are beneficial to Singaporeans as a whole:
“There’s no question that our policies are designed for the good of the people. While there may be certain parts of the policies that are not favourable, overall, I think these policies are for the well-being of the people and are good for the country.”
Mr Mah did not elaborate on the inadequacies of the policies and how they can be fine-tuned to better suit the needs and interests of the people.
While HDB has increased the supply of new flats, they will not be ready till a few years later which does nothing to dampen the red hot property market right now.
With the rise in prices of HDB flats fast out-pacing the wages of Singaporeans, are they still affordable to Singaporeans as proclaimed constantly by HDB and the ruling party?
Perhaps the “affordability benchmark” used by HDB will have to be raised to more than 50 per cent in the near future to ensure that the flats remain “affordable” to Singaporeans.
Filed under Headlines
Written by Our Correspondent
The day when HDB flats will cost no less than $1 million dollars may be closer than what Singaporeans think.
A property agent has put up a 5 room HDB flat in Marine Parade for sale at a shocking price of $990,000 on an internet property portal:
The previous record price paid for a HDB flat is $739,000 for a 5-room flat also in Marine Parade last year.
Though Singapore was mired in recession in 2009, prices of resale flats continue to climb by 8.2 per cent:
The sky-rocketing prices are fueled largely by limited number of flats built between the years 2006 – 2008 coupled with the large influx of foreigners into Singapore during the same period of time.
Only 3,183 new flats were built in 2008 when there were over 90,000 PRs and 20,000 new citizens in the same year:
[Source: HDB Financial Report 2008/2009]
As public housing is a basic necessity in Singapore, many have no choice but to pay the price set by HDB, the sole provider and seller in Singapore.
Despite widespread frustration, worries and resentment on the ground, the ruling party appears to be unfazed by the prospect of a property bubble emerging.
Prime Minister Lee Hsien Loong said recently that his government does not have any control over the prices of resale flats:
“These resale prices are set by individual households who transact flats on a willing buyer, willing seller basis, and are affected by movements and sentiments in the wider economy, including the private property market. Hence, resale prices of HDB flats will fluctuate from year to year,” he explained.
National Development Minister Mah Bow Tan, who is bearing the brunt of criticisms over his inaction to put a stop to the escalating prices promised to “monitor” the situation carefully.
Though he acknowledged that some people may be “adversely” affected by the housing policies, he is adamant that they are beneficial to Singaporeans as a whole:
“There’s no question that our policies are designed for the good of the people. While there may be certain parts of the policies that are not favourable, overall, I think these policies are for the well-being of the people and are good for the country.”
Mr Mah did not elaborate on the inadequacies of the policies and how they can be fine-tuned to better suit the needs and interests of the people.
While HDB has increased the supply of new flats, they will not be ready till a few years later which does nothing to dampen the red hot property market right now.
With the rise in prices of HDB flats fast out-pacing the wages of Singaporeans, are they still affordable to Singaporeans as proclaimed constantly by HDB and the ruling party?
Perhaps the “affordability benchmark” used by HDB will have to be raised to more than 50 per cent in the near future to ensure that the flats remain “affordable” to Singaporeans.
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