View Full Version : Years to correct supply-demand imbalance for HDB flats: Khaw
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1142742/1/.html
Years to correct supply-demand imbalance for HDB flats: Khaw
By Joanne Chan | Posted: 24 July 2011 1656 hrs
SINGAPORE: National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
He said there is currently an imbalance between supply and demand - and new Build-To-Order (BTO) flats take three years to build.
Mr Khaw said this in response to questions from reporters on the sidelines of a community event on Sunday.
He also expressed confidence that resale flat prices will stabilise but stressed that the problem of high prices cannot be solved overnight. He urged Singaporeans to be patient.
On Friday, figures from the HDB showed prices rising by 3.1 per cent in the second quarter of this year, nearly twice the previous quarter's 1.6 per cent.
"Why do prices go up? It's very simple, because there's an imbalance in supply and demand. Supply means... build more. (But) you won't see the flat until three years later. New housing plans will have effect on the resale market. So the more I push out, I'm sure there's some influence," said Mr Khaw.
On the demand side, Mr Khaw advised young couples who have a place to stay in currently, not to get too excited and jump into the resale market. Instead, they should continue to apply for a BTO flat. He also urged upgraders who already own a flat to hold off on their plans, so as not to crowd the market.
Mr Khaw added that the property cooling measures implemented by the government have reduced unnecessary demand stemming from speculation.
Mr Khaw also explained why the HDB stopped releasing the median Cash-Over-Valuation (COV). The minister said the figure is "misleading" and cannot be used to judge if COV has gone up or come down.
He added that the median figure is dependent on the house type and location of flats that are sold, which can change from month to month.
Instead, the HDB will continue to offer a breakdown of COV according to location and house type, which Mr Khaw said, is the information Singaporeans need when they decide on whether to buy a home.
- CNA /ls
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1142742/1/.html
Years to correct supply-demand imbalance for HDB flats: Khaw
By Joanne Chan | Posted: 24 July 2011 1656 hrs
SINGAPORE: National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
He said there is currently an imbalance between supply and demand - and new Build-To-Order (BTO) flats take three years to build.
Mr Khaw said this in response to questions from reporters on the sidelines of a community event on Sunday.
He also expressed confidence that resale flat prices will stabilise but stressed that the problem of high prices cannot be solved overnight. He urged Singaporeans to be patient.
On Friday, figures from the HDB showed prices rising by 3.1 per cent in the second quarter of this year, nearly twice the previous quarter's 1.6 per cent.
"Why do prices go up? It's very simple, because there's an imbalance in supply and demand. Supply means... build more. (But) you won't see the flat until three years later. New housing plans will have effect on the resale market. So the more I push out, I'm sure there's some influence," said Mr Khaw.
On the demand side, Mr Khaw advised young couples who have a place to stay in currently, not to get too excited and jump into the resale market. Instead, they should continue to apply for a BTO flat. He also urged upgraders who already own a flat to hold off on their plans, so as not to crowd the market.
Mr Khaw added that the property cooling measures implemented by the government have reduced unnecessary demand stemming from speculation.
Mr Khaw also explained why the HDB stopped releasing the median Cash-Over-Valuation (COV). The minister said the figure is "misleading" and cannot be used to judge if COV has gone up or come down.
He added that the median figure is dependent on the house type and location of flats that are sold, which can change from month to month.
Instead, the HDB will continue to offer a breakdown of COV according to location and house type, which Mr Khaw said, is the information Singaporeans need when they decide on whether to buy a home.
- CNA /ls
It pay back time for those who did not buy when HDB have surplus flat back in 2003.
It pay back time for those who did not buy when HDB have surplus flat back in 2003.For those who can buy but chose not to! :o Don't worry. The next one is not far away, in about 3 to 5 years. :D
Young couples are also smart. They are also looking for a flat which has potential to grow so as they have seen how their parents upgrade from HDB flats to condo. They may still go into resale market of mature estate.
Mature estates r larger units, closer to town, work n parents. Can SERS on 10-20 years' time. No way for new estates in punggol or pasir ris to fight, until e 2nd north south express way is completed n good schools appear there. Try transplanting RI there will help to reduce crazy COV.
Mature estates r larger units, closer to town, work n parents. Can SERS on 10-20 years' time. No way for new estates in punggol or pasir ris to fight, until e 2nd north south express way is completed n good schools appear there. Try transplanting RI there will help to reduce crazy COV.Just a personal view but I think the many many good schools along Dunearn Rd should be relocated for 2 reasons. 1. The congestion that is :scared-1: especially during peak hours. 2. The flood problem is still not fully resolved since 20 years ago.
Ease the traffic by taking out a few schools! Redo the whole area for other purpose and I think it'll be a better drive... LOL.
I really don't see what progressive steps are being taken other than trying to ramp up supply.
We are just going to end up in a huge oversupply or glut situation 3 to 5 years from now.
Shouldn't they be analyzing the root cause of current situation and addressing it rather than taking short-term measures. They should be looking seriously at the demand side - immigration and socio-demographic factors.
I fear that all this excessive building is going to end in grief and our dear Minister is going to be in the same situation as his predecessor when the massive glut is going to make him call a halt to supply thus causing another drought ten yrs down the road.
I really don't see what progressive steps are being taken other than trying to ramp up supply.
We are just going to end up in a huge oversupply or glut situation 3 to 5 years from now.
Shouldn't they be analyzing the root cause of current situation and addressing it rather than taking short-term measures. They should be looking seriously at the demand side - immigration and socio-demographic factors.
I fear that all this excessive building is going to end in grief and our dear Minister is going to be in the same situation as his predecessor when the massive glut is going to make him call a halt to supply thus causing another drought ten yrs down the road.He won't be in that same situation lah. Oversupply is always better than undersupply! :D
He won't be in that same situation lah. Oversupply is always better than undersupply! :D
I'm of e view tt ramping up e supply is not only for local residents. The govt cld b preparing e ground for more foreign workers to come in later. No way our economy can grow fast without foreign workers. Singapore was in a sad state from 2001 to 2005. I recall many HDB shops had no business. Since 2006 when e flood gate opened, they r jostling w one another for shop spaces. I can't even walk straight along e corridor without bumping into another person. Landlords n business owners r smiling their way to E banks.
devilplate
25-07-11, 10:14
I'm of e view tt ramping up e supply is not only for local residents. The govt cld b preparing e ground for more foreign workers to come in later. No way our economy can grow fast without foreign workers. Singapore was in a sad state from 2001 to 2005. I recall many HDB shops had no business. Since 2006 when e flood gate opened, they r jostling w one another for shop spaces. I can't even walk straight along e corridor without bumping into another person. Landlords n business owners r smiling their way to E banks.
Cfm more n more foreigners coming....build so many mrt lines for? Can cater 10mil with proper planning....so many suburban biz hub:D
But wat i worry is crime rate n social stability.....
He won't be in that same situation lah. Oversupply is always better than undersupply! :D
The only reason why we are facing such a high influx is because of the state of the global economy. Once it recovers in 3 to 5 years time, these foreigners or PRs will flock back to their native countries and we will be left with a huge stock of unoccupied flats and shophouses.
The only reason why we are facing such a high influx is because of the state of the global economy. Once it recovers in 3 to 5 years time, these foreigners or PRs will flock back to their native countries and we will be left with a huge stock of unoccupied flats and shophouses.
Have you seen some of their countries' debt to budget? At the rate their going, some of them will only go back when they retire.
Why not just give the order to HDB to freeze valuations of resale flats and prices of new BTO on a PSF basis.
Swift and immediate. No need to wait for few years. Duh?
Have you seen some of their countries' debt to budget? At the rate their going, some of them will only go back when they retire.Imagine when US fail to agree on their plans to save the US economy come Aug. Everything is just so uncertain yet Singapore's housing prices are still climbing... :confused:
Have you seen some of their countries' debt to budget? At the rate their going, some of them will only go back when they retire.
You are also forgetting that a lot of countries will need to rebuild their infrastructure (Japan quake, Australia floods) as well as expansion (China railway etc). The massive infrastructure re-build will draw a lot of the foreigners away.
It may not happen overnight but we will gradually see the rate of growth slow or even turn negative in due course.
You are also forgetting that a lot of countries will need to rebuild their infrastructure (Japan quake, Australia floods) as well as expansion (China railway etc). The massive infrastructure re-build will draw a lot of the foreigners away.
It may not happen overnight but we will gradually see the rate of growth slow or even turn negative in due course.
Japan, Australia and China still has some fundamentals about it with a fairly decent budget status. Besides, most of the foreigners here are in the service sector rather than the infrastructure sector. Actually, I was thinking more of the western economies where their budget is not as great.
thomastansb
26-07-11, 02:07
That is why cycle always come like 7 - 10 years. No thanks to such smart people around. MBT had a hard time clearing backlog. KBW will have an even harder time. Unless they open the tap big big. Then another set of problem will emerge.
I really don't see what progressive steps are being taken other than trying to ramp up supply.
We are just going to end up in a huge oversupply or glut situation 3 to 5 years from now.
Shouldn't they be analyzing the root cause of current situation and addressing it rather than taking short-term measures. They should be looking seriously at the demand side - immigration and socio-demographic factors.
I fear that all this excessive building is going to end in grief and our dear Minister is going to be in the same situation as his predecessor when the massive glut is going to make him call a halt to supply thus causing another drought ten yrs down the road.
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