How costly are resale HDB really? One chart combines all transactions to give you the answer

[tarous]

https://vulcanpost.com/817376/how-c...ines-all-transactions-to-give-you-the-answer/
How can we see the full picture, though? Here’s a list of conditions that need to be met:

1. Instead of list prices we need to see actual transactions that took place, where money changed hands. This will show us how much people are really paying.
2. These transactions have to be divided by apartment types or sizes and weighed in proportion to each other, so that we can get an accurate average.
3. If possible, they should also consider other factors that affect prices, such as location, distance from MRT, tenure left and so on, so that outliers do not sway the average misleading us in the process.
4. Finally, since prices change over time, we have to compare them against household income statistics, to understand whether resale apartments are getting more or less affordable in proportion to what Singaporeans can spend.

 

[lupster]

Does median household income look higher because it's taking longer for the working child to move out due to low BTO flat supply, long wait time for a BTO flat and the ridiculous resale flat price?

Wait for a BTO flat can take over 7 years since construction can take 5- 7 years and couples trying for a BTO flat might need several tries before winning the BTO lottery.

 

[jericho75]

This valuation is flaw. If one day Elon musk come offer a unit 50 million then this is the benchmark and now all must sell 50 million. Valuation is based on real value and not who bid highest.

 

[dnsfpl]

is demand and supply lar

 

[Aaron_soh80]

y people willingly to pay high price for resales flat? is like bullet train & normal train .. u wan fast u have to pay more..

 

[jericho75]

y people willingly to pay high price for resales flat? is like bullet train & normal train .. u wan fast u have to pay more..

40 years old bullet train?

 

[gnoes85]

Just see hdb past transaction price enough

 

[curahee]

y people willingly to pay high price for resales flat? is like bullet train & normal train .. u wan fast u have to pay more..

time is money, ppl willing to pay more for instant shelter and move on to the other stage of their life.


Read HWZ Forum Rules!

 

[ballastic90]

Zhun one notch

 

[dambio]

time is money, ppl willing to pay more for instant shelter and move on to the other stage of their life.


Read HWZ Forum Rules!

Buying to flip n for speculation? For instance foreigners.

 

[Bumperbee88]

This valuation is flaw. If one day Elon musk come offer a unit 50 million then this is the benchmark and now all must sell 50 million. Valuation is based on real value and not who bid highest.

Elon lost a most fortune liao. Now is nursing his deep wounds

 

[inmyopinion]

https://vulcanpost.com/817376/how-c...ines-all-transactions-to-give-you-the-answer/
How can we see the full picture, though? Here’s a list of conditions that need to be met:

1. Instead of list prices we need to see actual transactions that took place, where money changed hands. This will show us how much people are really paying.
2. These transactions have to be divided by apartment types or sizes and weighed in proportion to each other, so that we can get an accurate average.
3. If possible, they should also consider other factors that affect prices, such as location, distance from MRT, tenure left and so on, so that outliers do not sway the average misleading us in the process.
4. Finally, since prices change over time, we have to compare them against household income statistics, to understand whether resale apartments are getting more or less affordable in proportion to what Singaporeans can spend.

G should stop giving grants (taxpayers $). It will continue to drive the price up for resale and new BTOs because they are linked.

When need to use more taxpayers $, increase GST again right? Might as well, increase GST to 15%.

I have said b4, many boomers will RIP and more old flats will be available. Either passed down to their children or G enforce them to sell it & not keep it.

Did the G look at how many are keeping their parents (who RIP) HDB & continue to act blur when the authorities call them. All kinds of excuses. They need to sell. This is one reason why the supply is not enough

 

[iCubes]

This valuation is flaw. If one day Elon musk come offer a unit 50 million then this is the benchmark and now all must sell 50 million. Valuation is based on real value and not who bid highest.

Then who in your opinion should decide on the real value? I think that price is determined by the seller but value is determined by the buyer and hence there will always be a group of buyers who are willing to pay more than the market price for features of a property they can't find elsewhere. And this can include: how fast they can secure the house, feeling about the place (emotional), feng shui (not scientific), relationship with seller/agent, distance of parent's place, distance to work, schools, the list goes on.

 

[jericho75]

Then who in your opinion should decide on the real value? I think that price is determined by the seller but value is determined by the buyer and hence there will always be a group of buyers who are willing to pay more than the market price for features of a property they can't find elsewhere. And this can include: how fast they can secure the house, feeling about the place (emotional), feng shui (not scientific), relationship with seller/agent, distance of parent's place, distance to work, schools, the list goes on.

like that is like 7th month dinner bidding liao. those that made a windfall from private property sales will win and outbid those that earn those money by going to work daily and collecting the money month by month.

 

[nasfieldjohn]

Fake demand maor
So flippers can huat

 

[iCubes]

like that is like 7th month dinner bidding liao. those that made a windfall from private property sales will win and outbid those that earn those money by going to work daily and collecting the money month by month.

What's the alternative? Isn't this the same for most resale items out here? : Cars, shoes, designer bags, art pieces, jewelry - you can set any price you want but only people who sees the value will pay for it. You simply move on if you don't wish to pay the price, and this model has been working well. The sellers are also taking on a risk by purchasing first - the item might not prove to be worth its price or lose its value over time, hence asking for a premium for the risk he took is also fair.

 

[12bucklemyshoe]

got many solutions:

1) go further
pasir ris, marsiling, jurong west, bukit panjang. prices there are comparatively cheaper than say commonwealth, bishan or dakota.

2) go smaller
difference between 3rm and 4rm can be about $150k. if cannot afford 4rm, go 3rm instead lor.

3) go older
the difference here is even more obvious. some 5rm with 90 years remaining can cost $1mil but those with 50 years remaining go for around $600k, in a similar location. $400k lower.

ideally, you don't have to compromise. means get a newer resale flat that is big and in a good location.
but if over budget, choose 1 out of the 3 solutions.
if still over budget, choose 2 out of the 3 solutions.

if still cannot but die die must buy, then choose all 3.
$288k for a 3rm HDB in boon lay with 51 years remaining.
confirm plus chop everyone here can afford.

 

[vangug]

the chart doesn't tell us anything we don't already know.... prices were peak at 2011... and now we are at a new peak and it outpaces income... so what's new? if COVID and the slow-down to construction is the cause of the new peak in prices then we may see a slow-down... but until new supplies of flats arrive... this wave is going to only keep getting higher...

 

[tomasulu]

High resale is gonna mean people will be really unhappy if the Govt doesn’t enbloc their flats.

 

[tarous]

Does median household income look higher because it's taking longer for the working child to move out due to low BTO flat supply, long wait time for a BTO flat and the ridiculous resale flat price?

Wait for a BTO flat can take over 7 years since construction can take 5- 7 years and couples trying for a BTO flat might need several tries before winning the BTO lottery.

Nope, the income per household member is also going up.