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

[idolcritic]

Suddenly become cheap becos of a graph
It's magic!

 

[tankgunner]

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.

Exactly. Our median income growth is not organic one.

 

[focus1974]

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.

ok.. the chart shows HDB prices are expensive relative to median income now.

the public and oppo is right .... HDB Are expensive.

lol

 

[vespaguy]

when pakcik sees hdb BTO and resale owners driving supercars, sometimes more than 1 in the same household, pakcik knows the system is broken. HDB should not allow anyone to BTO more than once and should do better assessment of networth of individual. If you drive a supercar, taxpayers should not be subsidizing your home.

 

[Shion]

prices are skyrocketing, that is a fact

 

[jericho75]

Exactly. Our median income growth is not organic one.

So those that sold private housing profit bid sure win those that got the money via working

 

[MatrixFanatic]

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.

If so costly why prices keep going up? LOL!

 

[focus1974]

when pakcik sees hdb BTO and resale owners driving supercars, sometimes more than 1 in the same household, pakcik knows the system is broken. HDB should not allow anyone to BTO more than once and should do better assessment of networth of individual. If you drive a supercar, taxpayers should not be subsidizing your home.

what's wrong with it..
when you all have been pumping money into SIA or MRTs ..and then keep complaining fare still rising.

rather benefit the individual than the JLB mgmt there right

 

[questsohai]

only sohais will overpay for HDB. hard truth here

 

[light84]

I see the chart I see housing ministers

When red is above green last time, it is Mah Bow Tan’s time. His name stink big time, totally inept in controlling housing prices, election campaigning time ppl actually boo his name.

Red below green is during Khaw Boon Wan time. All good, manage to clamp COV and keep price affordable

Now red above green, I think Desmond is fast become Mah Bow Tan’s version 2

 

[tankgunner]

So those that sold private housing profit bid sure win those that got the money via working

Yalor

 

[coyote]

ok.. the chart shows HDB prices are expensive relative to median income now.

the public and oppo is right .... HDB Are expensive.

lol

You don't know how to read the chart?

 

[OngHuatHuat]

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.

The tricky part is those centralized, bigger and newer flats tend to appreciate much faster.

 

[coern]

real value is what 90% of the punters pay... not the 1% outliers...

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.

 

[j4jersey.]

Steve chia CNA program may offer a few clue why housing is mad these few years

 

[Mecisteus]

Now red above green, I think Desmond is fast become Mah Bow Tan’s version 2

No genius can forecast the pandemic.

Current price escalation is due to the disruption of supply. It should be fixed soon.

 

[Laneige]

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.

Media put graduates 5.6k
So maybe ard 4-5k starting pay for them
That’s affordable at least to them because v fast they will hit ceiling of 14k for both working adults
Esp from bto to moving in

People that said prices keep on going up failed to understand that it’s a selected group of ppl, most likely have their own units liao unless they start off v late and their qualifications r lower

Then govt Shld consider how to help this group of ppl by offering more subsidies instead of one rule for all
Subsidize Shld be apply for those that after getting their flats for 5 yrs their income still not much improvement then come in n top up lo

Don’t let some ppl leech the system by not working first n apply etc for those that just came out to work

 

[linbeier]

if no house yet den better buy nao coz prices r shooting up

 

[Mecisteus]

People that said prices keep on going up failed to understand that it’s a selected group of ppl, most likely have their own units liao unless they start off v late and their qualifications r lower

That group of people are those who try to benchmark against 1M HDB flats.

And did not consider prices after subsidies and grants.

 

[Mecisteus]

Some people are worried about escalating subsidies if flat prices continue to escalate.

This is valid but not a big concern.

Reminder that costs of land is also rising. Flat buyers are paying for the land costs.

Basically gov collects land costs and this money will channel to the subsidies.