Buying new BTO flat no longer guarantee future profits

[Leeds]

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?

[Kelonguni]

The past generation of baby boomers needed the asset help. Gen X and later, the educational level is generally very high. I feel they do not need the boost in this manner.

There are also the other long term schemes to unlock its value.

I feel the prices between new and old HDBs might narrow or equalise at best, as immediately ready can still result in a premium. Not everyone qualifies for new HDBs too.

At much higher prices that might warrant a greater attention on the newness and age of pproperty though. My two cents.

[Arcachon]

Simply math.

Buy a resale rent it out then tell me whether Buying new BTO flat no longer guarantee future profits.

They can only hold that much of water, in the end the water will overflow again.