HDB resale flat deals dive in Q1
Published April 28, 2007
HDB resale flat deals dive in Q1
By UMA SHANKARI
THE number of HDB resale transactions dipped sharply in the first quarter of this year, even as the price index continued to edge up, data released yesterday by HDB shows.
And market watchers said that although transactions can be expected to pick up over the next few quarters, the market is likely to remain lacklustre for one or two years.
In the first three months of this year, the number of HDB resale transactions was the lowest since Q1 2004. Just 6,258 units were sold in January-March 2007 - down 11.1 per cent from 7,039 a year earlier. And down a bigger 20.2 per cent from Q4 2006. The HDB resale price index, on the other hand, continued its slow climb, increasing 1.3 per cent in Q1.
The low volume could be loan-related, says property firm ERA. Starting Jan 1, flat buyers who want an HDB loan to buy a resale flat had to get an HDB loan eligibility letter, while those taking bank loans have needed a letter of offer from a bank.
'Buyers and property agents were not used to this new procedure at first and the resulting confusion did slow the pace of resale transactions for the whole market,' said ERA assistant vice-president Eugene Lim.
But the market is now used to the change and volume has picked up, Mr Lim said. About half of the resale flats that ERA sold in Q1 were transacted in March, he said. ERA says it has 40 per cent of the HDB resale market.
Another factor that could have squeezed Q1 resale volume is keen competition, other property agents reckon. 'More people could be buying private property after selling their HDB flats, rather than just moving onto bigger HDB flats,' said PropNex chief executive Mohamed Ismail.
The resale market may also be facing competition from HDB's Build-To-Order programme and the Design, Build and Sell Scheme launched for private developers last year.
Re: HDB resale flat deals dive in Q1
What is happening to poor man housing? The rate of price increases only barely match inflation rate.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Madeira
What is happening to poor man housing? The rate of price increases only barely match inflation rate.
rich get richer poor get poorer
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Madeira
What is happening to poor man housing? The rate of price increases only barely match inflation rate.
Singapores' poor will not be able to get out of the rut. The vicious cycle will now be a concrete cycle. In the future people will say things like" I rather die then to be poor" . The middle class is getting eroded. Lower middle will go into poor, upper middle will become rich. Poor will become poorer, rich will become richer. This will be the way of life in Singapore.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Singapores' poor
Singapores' poor will not be able to get out of the rut. The vicious cycle will now be a concrete cycle. In the future people will say things like" I rather die then to be poor" . The middle class is getting eroded. Lower middle will go into poor, upper middle will become rich. Poor will become poorer, rich will become richer. This will be the way of life in Singapore.
HDB is where 83% or so of Singaporeans stay. So in this latest property boom, 83% of the people do not enjoy the run-up. Of course there are also a number of HDB owners that have private properties and these leechers of course benefitted from the bull-run in property prices.
Re: HDB resale flat deals dive in Q1
While HDB prices have increased, the lack of volume behind the rise is evidence that this bull run is top-down as we all know. But this divergence in price-volume is noteworthy. If one looks into the various caveats being lodged even for middle-range condos, I believe the majority will show that price increases have not been accompanied by an increase in volume. Of course its undeniable that the take up rate for some projects are very strong but this price-volume "divergence" does suggest to me that there is little underlying momentum in the present price run-up.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Singapores' poor
Singapores' poor will not be able to get out of the rut. The vicious cycle will now be a concrete cycle. In the future people will say things like" I rather die then to be poor" . The middle class is getting eroded. Lower middle will go into poor, upper middle will become rich. Poor will become poorer, rich will become richer. This will be the way of life in Singapore.
This is manifested even in the latest civil service pay revision which range from zero% to 33%. Generally the highest % (up to 33%) of pay revision will go to the highest salary grade staff moving down to the lowest paid, eg. daily rated civil servants, who will get 0% pay revision. The rich/poor gap is getting bigger even for government employees. Hence, it is only natural that this also happens to property, ie. pte/HDB gap gets wider.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Unregistered
While HDB prices have increased, the lack of volume behind the rise is evidence that this bull run is top-down as we all know. But this divergence in price-volume is noteworthy. If one looks into the various caveats being lodged even for middle-range condos, I believe the majority will show that price increases have not been accompanied by an increase in volume. Of course its undeniable that the take up rate for some projects are very strong but this price-volume "divergence" does suggest to me that there is little underlying momentum in the present price run-up.
There is a reason to the price movement gap between HDB flats and private condos.
Quote:
Originally Posted by Beng
Last time. Developing country. Economy boom. Many jobs. People become richer. Everybody upgrades. Upgrade means bottoms up.
Now. Developed country, first world and Asia Hub. Low-end jobs lost to developing countries. Middle-level jobs faced salary ceiling challenge from other developing/developed countries and foreigners/immigrants. High-end jobs in high demand. Lots of investment/funds/cash coming in. Quite a number of rich immigrants.
Funds buy private condos. High-end condos preffered for investment purpose. Rich immigants also buy high-end condos (and some also buy landed properties). None of them are keen on low-end condos (suburb condos). So much funds/cash/investments, so little high-end condos. Somemore got many idoits go enblocs. So prices go up, up and up.
Some high-end earners slowly can't buy high-end condos, so buy middle-level condos. So middle-level condo prices also go up. Got more middle-level condos, so prices go up slower than high-end condos.
One day, some high-end earners can't afford middle-level condos, so they buy low-end condos. So, low-end condos will also go up.
Another day, (upper) middle-level earner can't afford low-end condos, so they buy the big HDB flats.
............. all top-down due to inflow of investments/funds/rich immigrants.
1996: People get richer. Upgrade. Bottoms up.
2005: Investment/funds/cash/rich immigrants come in. Invest. Top down.
Re: HDB resale flat deals dive in Q1
If you are poor right now, looks like you will forever be poor. Unless you strike 4D or your children become president scholars. There is no freaking way you can get out of the rut. Better to be dead, than to be poor. It is better to burn, then to fade away. Try creative entrepeneurship. EG. Non profit organizations and charity drives to rip off the public(NKF), become a long(a long san), sell drugs(deal in countries w/no death penalty), extrotion(don't use knife or guns, to lessen sentence if caught), help launder money(which our banks are already doing legally). These are examples of how poor people make big money.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by If you are poor
If you are poor right now, looks like you will forever be poor. Unless you strike 4D or your children become president scholars. There is no freaking way you can get out of the rut. Better to be dead, than to be poor. It is better to burn, then to fade away. Try creative entrepeneurship. EG. Non profit organizations and charity drives to rip off the public(NKF), become a long(a long san), sell drugs(deal in countries w/no death penalty), extrotion(don't use knife or guns, to lessen sentence if caught), help launder money(which our banks are already doing legally). These are examples of how poor people make big money.
To break out of the poor cycle, the children needs to be educated and given opportunity to work as a professionals. Then there is a chance for these professionals to accumulate wealth. There must be enough networks to ensure no one will be left out of the education.
It is not easy! It is the same everywhere. we just have to try bringing as many people out of the poor cycles as possible.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Ex-Poor
To break out of the poor cycle, the children needs to be educated and given opportunity to work as a professionals. Then there is a chance for these professionals to accumulate wealth. There must be enough networks to ensure no one will be left out of the education.
It is not easy! It is the same everywhere. we just have to try bringing as many people out of the poor cycles as possible.
To be frank, i think in Singapore, the gap is widening and the problems are getting worst. We normally do not see it because we are driving our cars around and selecting the nice places to eat, dine and relax, then go back to our condos. Go around all the HDB estates, take buses and MRT, eat at old estates with good original food, swim at public pools. The majority are there.
Seems like Singapore has many different classes of people already.
1. Elite, 2. Highly educated professionals, 3. Educated professionals, 4. Educated businessmen, 5. Uneducated businessmen, 6. Highly Educated workers, 7. White collar workers, 8. Blue collar workers and 9. unemployed.
9 types that i know of.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Unregistered
To be frank, i think in Singapore, the gap is widening and the problems are getting worst. We normally do not see it because we are driving our cars around and selecting the nice places to eat, dine and relax, then go back to our condos. Go around all the HDB estates, take buses and MRT, eat at old estates with good original food, swim at public pools. The majority are there.
Seems like Singapore has many different classes of people already.
1. Elite, 2. Highly educated professionals, 3. Educated professionals, 4. Educated businessmen, 5. Uneducated businessmen, 6. Highly Educated workers, 7. White collar workers, 8. Blue collar workers and 9. unemployed.
9 types that i know of.
Hahahaha, this country creating its own caste system like india? Only difference is no race is invovled.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by INDIA
Hahahaha, this country creating its own caste system like india? Only difference is no race is invovled.
Not only this country has different social classes, every countries have. Even communists have - the elites and the commoners.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Unregistered
Seems like Singapore has many different classes of people already.
1. Elite, 2. Highly educated professionals, 3. Educated professionals, 4. Educated businessmen, 5. Uneducated businessmen, 6. Highly Educated workers, 7. White collar workers, 8. Blue collar workers and 9. unemployed.
9 types that i know of.
Is this ranking in order of prestige? If so, Educated Businessmen should be ranked equally with Highly Educated Professionals.
Re: HDB resale flat deals dive in Q1
Quote:
Originally Posted by Unregistered
Is this ranking in order of prestige? If so, Educated Businessmen should be ranked equally with Highly Educated Professionals.
Don't start this ranking thing leh!
