Which Direction Will Property Prices Go ?

[The_Davis]

78% of the population lives in HDB. If HDB prices dropped, condo prices will drop as well to match that.

But how about rich get richer, poor gets poorer?

 

[Passerboy]

78% of the population lives in HDB. If HDB prices dropped, condo prices will drop as well to match that.

Does not appear to be the case thus far, seen so many agents advertising the fall
In HDB resale prices but the increase in private property prices prior to 2019, and recent HDB resale prices are increasing too.

 

[spcs2020]

But how about rich get richer, poor gets poorer?

It's always like this, whether in the past, now or in the future. And also regardless of Singapore or any places in the world.

The rich get richer, the poor, poorer.

 

[1993newbie]

Household debt-to-income ratio expected to rise as wages are depressed amid weak job market: MAS
https://www.todayonline.com/singapo...1__93tF6CrJSMmZt-xvzwV_ZO1wRRtctAIlAq_2ta2HIc

 

[The_Davis]

It's always like this, whether in the past, now or in the future. And also regardless of Singapore or any places in the world.

The rich get richer, the poor, poorer.

So the question is how will the rich react to this movement

 

[spcs2020]

Household debt-to-income ratio expected to rise as wages are depressed amid weak job market: MAS
https://www.todayonline.com/singapo...1__93tF6CrJSMmZt-xvzwV_ZO1wRRtctAIlAq_2ta2HIc

This is expected and come to 2021, unless there are new measures, condo prices would dip then go up. Many are either losing their jobs and for those with paycuts, it can be severe and go beyond their TDSR. Many are struggling with paying the monthly mortgages.

With govt stimulus ending soon in Q1 2021, and job mkt not improving, more will default the loans and recently, there are already so many mortgage sales.

Of course propery agents will tell you to buy now as all prices will go up in 2021. If they so sure, then why all the developers and property agencies keep pushing Govt to relax cooling measures or defer ABSD?

Properties will be cheaper come Q3 2021 onwards.

 

[kiatme]

78% of the population lives in HDB. If HDB prices dropped, condo prices will drop as well to match that.

If HDB price increase, does that mean condo price will increase ?
Since start of ** phase 2, prices have been climbing up.

https://www.srx.com.sg/price-index

 

[spcs2020]

If HDB price increase, does that mean condo price will increase ?
Since start of ** phase 2, prices have been climbing up.

https://www.srx.com.sg/price-index

Wait for 2 qtrs or 6 months first. We will see the real situation with the non reissue of OTP.

For Oct, apart of 110+ units sold for Linq and Landmark each, heard that others sales not that great.

For the great part of 2020, each month sales are inflated with OTP reissued for multiple times. This gives the wrong impression that many ppl are buying when it’s not.

 

[bujingyun82]

2nd HDB in AMK to cross 1m.

https://www.asiaone.com/money/5-roo...1E5ES3zX4dRw-qc6iXgs9uDRWg#Echobox=1606810563

 

[kiatme]

Wait for 2 qtrs or 6 months first. We will see the real situation with the non reissue of OTP.

For Oct, apart of 110+ units sold for Linq and Landmark each, heard that others sales not that great.

For the great part of 2020, each month sales are inflated with OTP reissued for multiple times. This gives the wrong impression that many ppl are buying when it’s not.

The price index is for resale, not total sales

 

[Clazav]

I think most 1mil hdb are in RCR, not many ccr hdb in the first place.

22k tax is negligible. How about this:

Bto price: 400k
Selling price after mop 900k.
Profit is 500k.
First 200k no need to tax
Next 100k tax 10%
Next 100k tax 20%
Next 100k tax 40%
Which mean need to pay tax to government of about 70k. Buyer pay the tax.

This might nudge the buyer to look for somewhere else, either cheaper resale, bto, or private. And no, not to apply to private, since there are already many cm tackling private markets already.

i think it will push down the overall resale market

imagine now ccr hdb 1m vs rcr hdb 0.5m
after curbing, ccr hdb drop 10% to 0.9m, naturally rcr hdb price will also drop
if not "everyone" will rather aim for ccr hdb
condo price will also drop as it is usually 2.5x hdb price

unless they plan to tax resale hdb transaction
eg 1st 400k 0%, next 400k 3%, next 400k, 5%
so if you sell 500k hdb need to pay $3k tax
sell 1m hdb need to pay $22k tax
but this will not curb the resale price

 

[spcs2020]

I think most 1mil hdb are in RCR, not many ccr hdb in the first place.

22k tax is negligible. How about this:

Bto price: 400k
Selling price after mop 900k.
Profit is 500k.
First 200k no need to tax
Next 100k tax 10%
Next 100k tax 20%
Next 100k tax 40%
Which mean need to pay tax to government of about 70k. Buyer pay the tax.

This might nudge the buyer to look for somewhere else, either cheaper resale, bto, or private. And no, not to apply to private, since there are already many cm tackling private markets already.

LOL, why penalising ppl if they can sell good profit for HDB? Do we need to impose the same for condos, landed as well?

 

[dnsfpl]

I think most 1mil hdb are in RCR, not many ccr hdb in the first place.

22k tax is negligible. How about this:

Bto price: 400k
Selling price after mop 900k.
Profit is 500k.
First 200k no need to tax
Next 100k tax 10%
Next 100k tax 20%
Next 100k tax 40%
Which mean need to pay tax to government of about 70k. Buyer pay the tax.

This might nudge the buyer to look for somewhere else, either cheaper resale, bto, or private. And no, not to apply to private, since there are already many cm tackling private markets already.

as i mentioned, tax will not curb price ma

 

[light84]

LOL, why penalising ppl if they can sell good profit for HDB? Do we need to impose the same for condos, landed as well?

Public housing .. Gahmen got skin in it. Crash or chiong also will have people complain, lose votes next election, remember MBT?

Gahmen best situation is to keep it in Goldilock kind of situation

 

[Clazav]

Dunno leh, minister said cannot let people earn a windfall leh. People will red eye one..

Actually you can see bto price for potential 1mil project is priced higher. For example bishan bto. How not to hit 1.2m upon mop? So who is pushing the hdb resale price to new high?

LOL, why penalising ppl if they can sell good profit for HDB? Do we need to impose the same for condos, landed as well?

 

[Forever84]

Dunno leh, minister said cannot let people earn a windfall leh. People will red eye one..

Actually you can see bto price for potential 1mil project is priced higher. For example bishan bto. How not to hit 1.2m upon mop? So who is pushing the hdb resale price to new high?

HDB is supposed to be subsidized housing what, if an area price very high, only can have rich people, it also sets to defeat the purpose of a fair society/program right?

If really want to fry property then go private route lo, but government will not take care, no coffee shop, no mrt no free paint job, basically u die your business

 

[bujingyun82]

Suggestions floated to curb prime HDB prices.

https://stackedhomes.com/editorial/prime-region-hdb-flats/

 

[sanzhu]

Up up up

Bank like dbs

Need to increase ratio reserves

Loan must keep performing

Loan must keep growing

Profits must ke3p increase

 

[Clazav]

Interesting idea. But I find 10 years mop very hard to implement. On official platform it states 10 years, but under table everyone using all sorts of excuses to shorten the mop. 5 years already difficult to make it one size fits all, how is 10 years even be possible?

Suggestions floated to curb prime HDB prices.

https://stackedhomes.com/editorial/prime-region-hdb-flats/

 

[Clazav]

Maybe hdb can make ugly looking hdb in prime area. Like those with corridor, weird layout, bad facing etc. Like that wouldn't hit 1 mil for sure, no matter how good the location and potential is