Sexposed: Marlboro and his stats on cost of HDB flats..

[louisoh]

In yesterday's Straits Times article about HDB flats being affordable, there was this chart:


It shows household income rising in tandem with HDB prices.


Credit goes to Hazel Poa[Link] for unveiling the trick here. Move the base year around and you get some other interesting graphs, here's one of the graphs generated by Hazel Poa:



Yes, not so "in tandem" if the base year was 2001. In fact only when you choose 1999 to be the base year instead of any other year in the last 10 years, you can show this "in tandem" movement.


Article obtained from http://singaporemind.blogspot.com/20...e-numbers.html.

[exxondus]

aiyah, I never took his words seriously de la. All the stats he says,etc.

Can you imagine how he could actually appear shocked when demand was so much higher than supply of HDB flats at a particular district? it happens for most of the mature estates wat. he first time looking at stats ah?

[sdchew]

I liked one of the comments

If you use the HDB methodology, you can prove all sorts of things. For example, you can prove that $100,000 Rolex watches are affordable. This is because you can:

1) Limit your sampling frame to people who had bought Rolex watches in the past 12 months

2) Calculate the average income of this group of people (e.g. $200,000 per month)

3) Conclude that $100,000 Rolex watches are “affordable” because they cost less than 5% of annual income of those who bought them !!!

Sadly, if I used a sample size of 1 (myself) and calculated it my annual salary excluding bonus, the Omega watch I just purchased is NOT deemed affordable (>5%).

[Speziel]

aiyah, I never took his words seriously de la. All the stats he says,etc.

Can you imagine how he could actually appear shocked when demand was so much higher than supply of HDB flats at a particular district? it happens for most of the mature estates wat. he first time looking at stats ah?

acting is also part of his job scope~

[batamboy]

acting is also part of his job scope~

Acting?? In that case, gotta change name to PWP- PPl Wayang Party??

[iMac08]

this is the best thread ever...i can't stop laughing since the moment i read the title...

[sportee]

Fund managers always use this trick to manipulate charts to improve the marketing capability of the funds... beware..

[exxondus]

acting is also part of his job scope~

speziel, your a'bra'tar very the distracting leh

[surestik]

Acting?? In that case, gotta change name to PWP- PPl Wayang Party??

Don't spoil and not to be mix up with Temasek Review's older name : Wayang Party. hahaha!!!! LMAO

[louisoh]

acting is also part of his job scope~

Bro..... ur avatar is very the....... erm......

[toffeesthings]

Bro..... ur avatar is very the....... erm......

Bro Spiezel, if it's your finger in the avatar, then you're a really lucky guy : )

[louisoh]

You wonder what the same chart looks like if we go back another 10 years to plot for a 20 year period:



1. From 1990 to 2009, RPI rose to 442 (442% of the base year) but household income rose only to 211 (211% of the base year) i.e. income rose at roughly half the rate property rose over a 20 year period. The RPI was only 34.1 in 1990, today it is 154 i.e. a HDB flat today is 4.5 times the price 20 years ago but household income is only 2.1 times.

2. You will notice the big jump from 1990 to 1995 when the RPI rose from 34.1 to 101.9. That jump occurred just after CPF was liberalised for housing in 1991. During that period household income only went up by 36% but HDB price almost tripled. CPF basically went from funding retirement to funding home purchases.

By Minister Mah's own methodology, there is no question that HDB flats were much more affordable in 1990 relative to household income than they are today. Singaporeans' inability to retire with enough funds is linked to the high cost of housing which far outstripped household income growth over the past 2 decade. The chart also tells us why life is so much tougher in Singapore today. It is not unrealistic expectations that cause this unhappiness....it is very real financial burden that caused this unhappiness.

[exxondus]

I have a feeling that CPF liberalisationis becaus most individuals just do not have the actual liquidity to purchase a house even starting from 1990s.

However, thats anyone's guess for the actual reason for liberalising.

[Paneraii]

I dont get it guys..

Is this an own goal ?

[louisoh]

I dont get it guys..

Is this an own goal ?

Self Pwned...