04-12-2013, 10:56 PM
Escalator up then escalator down. Escalator stops. Can we ever make escalator "balance"? But who are the people who will be caught in this escalator game of going up and down? i doubt the Pappys?
(04-12-2013, 10:46 PM)nsengkia Wrote: [ -> ]hdb resale prices crash? that is really scary scenario..but possible..(04-12-2013, 09:50 PM)opmi Wrote: [ -> ](04-12-2013, 09:17 PM)pianist Wrote: [ -> ]uncle nsengkia, was trying hard to understand what u wrote...but dun quite understand
do u mean bto prices is now artificially suppressed for a while only?
Khaw got OK from the party bosses to stop using imputed land prices (at market price) from the new BTO pricing. For now.
Khaw has de-linked BTO prices from the resale market. In the past, the rapid rise in property was due to positive feedback loop between resale flats and BTO prices.
When resale flat prices went up, people who could have afforded to wait might have considered BTO but Mah Bow Tan up BTO prices based on imputed land cost pegged to resale flat transactions. So potential BTO buyers decide that might as well jump in and get it immediately from the resale market.
That resulted in resale and BTO flat prices mutually ratchet each other upwards and allowed HDB owners to jump onto the private property bandwagon by upgrading (the price gap between HDB resale and private property narrowed substantially) so the whole property market ratcheted upwards.
Sort of like an escalator that effortlessly carries you to financial freedom but if, and only if, you are already, or can get, on it (what the previous PM called "asset enhancement").
But for those who were not on it, then it only became more difficult to get on the magical escalator since starting wages in Singapore stagnanted due to globalisation and technology.
Now Khaw intends to keep BTO affordable so the escalator has stopped.
Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.
If the Government does not reverse the minimum 3 year PR rule then I am afraid HDB resale prices will crash when the EC pipeline comes on stream and the whole escalator goes into reverse.
(04-12-2013, 11:28 PM)pianist Wrote: [ -> ](04-12-2013, 10:46 PM)nsengkia Wrote: [ -> ]hdb resale prices crash? that is really scary scenario..but possible..(04-12-2013, 09:50 PM)opmi Wrote: [ -> ](04-12-2013, 09:17 PM)pianist Wrote: [ -> ]uncle nsengkia, was trying hard to understand what u wrote...but dun quite understand
do u mean bto prices is now artificially suppressed for a while only?
Khaw got OK from the party bosses to stop using imputed land prices (at market price) from the new BTO pricing. For now.
Khaw has de-linked BTO prices from the resale market. In the past, the rapid rise in property was due to positive feedback loop between resale flats and BTO prices.
When resale flat prices went up, people who could have afforded to wait might have considered BTO but Mah Bow Tan up BTO prices based on imputed land cost pegged to resale flat transactions. So potential BTO buyers decide that might as well jump in and get it immediately from the resale market.
That resulted in resale and BTO flat prices mutually ratchet each other upwards and allowed HDB owners to jump onto the private property bandwagon by upgrading (the price gap between HDB resale and private property narrowed substantially) so the whole property market ratcheted upwards.
Sort of like an escalator that effortlessly carries you to financial freedom but if, and only if, you are already, or can get, on it (what the previous PM called "asset enhancement").
But for those who were not on it, then it only became more difficult to get on the magical escalator since starting wages in Singapore stagnanted due to globalisation and technology.
Now Khaw intends to keep BTO affordable so the escalator has stopped.
Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.
If the Government does not reverse the minimum 3 year PR rule then I am afraid HDB resale prices will crash when the EC pipeline comes on stream and the whole escalator goes into reverse.
when is this within 6mths of top of ec happen most glaringly?
(04-12-2013, 10:46 PM)nsengkia Wrote: [ -> ]Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.
(05-12-2013, 12:48 AM)countonme Wrote: [ -> ]I wonder wat is on the policy makers' mind about this completion of pvt/ECs. I am sure they know about it. Personally, i hope they wont resort to importing FT/PRs using this excess units as excuse.dun think they will have the foresight like what we r seeing here in this forum
(04-12-2013, 11:28 PM)pianist Wrote: [ -> ](04-12-2013, 10:46 PM)nsengkia Wrote: [ -> ]hdb resale prices crash? that is really scary scenario..but possible..(04-12-2013, 09:50 PM)opmi Wrote: [ -> ](04-12-2013, 09:17 PM)pianist Wrote: [ -> ]uncle nsengkia, was trying hard to understand what u wrote...but dun quite understand
do u mean bto prices is now artificially suppressed for a while only?
Khaw got OK from the party bosses to stop using imputed land prices (at market price) from the new BTO pricing. For now.
Khaw has de-linked BTO prices from the resale market. In the past, the rapid rise in property was due to positive feedback loop between resale flats and BTO prices.
When resale flat prices went up, people who could have afforded to wait might have considered BTO but Mah Bow Tan up BTO prices based on imputed land cost pegged to resale flat transactions. So potential BTO buyers decide that might as well jump in and get it immediately from the resale market.
That resulted in resale and BTO flat prices mutually ratchet each other upwards and allowed HDB owners to jump onto the private property bandwagon by upgrading (the price gap between HDB resale and private property narrowed substantially) so the whole property market ratcheted upwards.
Sort of like an escalator that effortlessly carries you to financial freedom but if, and only if, you are already, or can get, on it (what the previous PM called "asset enhancement").
But for those who were not on it, then it only became more difficult to get on the magical escalator since starting wages in Singapore stagnanted due to globalisation and technology.
Now Khaw intends to keep BTO affordable so the escalator has stopped.
Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.
If the Government does not reverse the minimum 3 year PR rule then I am afraid HDB resale prices will crash when the EC pipeline comes on stream and the whole escalator goes into reverse.
when is this within 6mths of top of ec happen most glaringly?