Leeds
18-10-15, 09:08
With the government's de-linking new BTO flat price with resale price during the property peak, new BTO flat prices were relatively cheaper than. While resale HDB flat price continues to decline, new BTO flat price remains relatively stable as before. In another word, BTO flat price is now not as cheap as compared with resale price.
What is going to happen is that the HDB market is going to behave like the private property market where new private flat cost more than resale private flat.
With the majority of HDB flats built in the late 70s' and the 80s' and with these flats having undergone upgrading, most of these flats will not be en bloc. The government also could not afford to en bloc all aging flats as more flats age. With the various schemes to help buyers unlock the value of their HDB flats (such as lease-buy back etc etc), the asset enhancement scheme during the earlier days effectively come to an end. The asset enhancement scheme had benefited one generation but will burden the next generation if it allows to continue.
Accept for some new developments in good location, buyers of new BTO flats should not continue to believe that they could profit from their purchase after 5 years and upgrade to private flats. HDB flat is no longer a "speculative" asset but an asset you could unlock its value through the various schemes offer by HDB.
This change in housing policy is a major step to maintain economic sustainability as we become a mature economy with an aging population.
How does this change in policy affects the property market as a whole?
What is going to happen is that the HDB market is going to behave like the private property market where new private flat cost more than resale private flat.
With the majority of HDB flats built in the late 70s' and the 80s' and with these flats having undergone upgrading, most of these flats will not be en bloc. The government also could not afford to en bloc all aging flats as more flats age. With the various schemes to help buyers unlock the value of their HDB flats (such as lease-buy back etc etc), the asset enhancement scheme during the earlier days effectively come to an end. The asset enhancement scheme had benefited one generation but will burden the next generation if it allows to continue.
Accept for some new developments in good location, buyers of new BTO flats should not continue to believe that they could profit from their purchase after 5 years and upgrade to private flats. HDB flat is no longer a "speculative" asset but an asset you could unlock its value through the various schemes offer by HDB.
This change in housing policy is a major step to maintain economic sustainability as we become a mature economy with an aging population.
How does this change in policy affects the property market as a whole?