Just came back from the Otago University, New Zealand, mini SG50 Reunion dinner feeling very happy and thankful! Happy to see the many long time varsity mates and friends catching up as if the 30 years that went by us never existed chatting merrily away with each other! Thankful that we have the opportunity to celebrate and be present, SG50 as a bonus! Hail hail to friendship!!
"HDB resale prices drop for the first time in 4 months - The Straits Times 6 August 2015
SINGAPORE - HDB resale prices dropped 0.5 per cent in July, as it last month compared to June 2015, reported SRX Property in its HDB resale flash report .
Resale prices of HDB 3 Room Flats remained flat while prices of HDB 4, 5 Room and Executive Flats went down by 0.7 per cent, 1.2 per cent and 0.9 per cent respectively.
According to the SRX Property Price Index for HDB Resale. prices have dropped 4.3 per cent from July 2014, year-on-year, and prices have declined 11.4 per cent since the peak in April 2013. Price change in June 2015 has been revised from a 0.1 per cent increase to no change.
In July 2015, HDB resale prices decreased by 0.1 per cent in mature estates and 0.9 per cent in non-mature estates. Year-on-year, prices in mature estates have declined 2.6 per cent from July 2014, while prices in non-mature estates have declined 5.5 per cent from July 2014, according to the SRX Property Price Sub-Indices for HDB Resale.
Resale volume has decreased. 1,552 HDB resale flats were sold in July 2015, a 9.2 per cent decrease from 1,709 transacted units in June 2015.
Overall Median T-O-X was NEGATIVE $1000 in July 2015, down from POSITIVE $1,000 in JUNE 2015. Median T-O-X for HDB 3-Room, 4-Room and Executive flats in July 2015 saw NEGATIVE $1,000, NEGATIVE $1000, and NEGATIVE $10,500 respectively. 5-Room flats posted a POSTIVE $1900 median T-O-X."
Hmm, it is SUCH a BAD THING that HDB resale prices have dropped for the 1st time in 4 months? It really depends on what mind-set you are keeping and if you have a long term sustainability view or not!
Lessons for me are:
1. buying HDB flat for a big capital profit, or capital appreciation, is STILL a long held and long sustained view by the authorities and hence the laymen given that the government constantly says that: your appreciating HDB flats, not mentioning the even bigger increases noted in private properties market! Also, let's not forget the mantra of: 'your appreciating property is YOUR SOURCE of fund of last resort for your RETIREMENT'!!;
2. the truth is the properties prices STILL have to follow the supply-and-demand principle all things being equal! When there are over-demand, the prices go up. When supplies are rushed to meet the excess demand and overshot, the prices come down. Of course, the 'real estate' market is subject to FREQUENT and GENEROUS intervention by the government as it is concerned about: instability with home buyers and existing owners LOSING OUT when prices TRULY reflect the oversupply situation! WHY? It is afraid that the 'new buyers and existing owners' will blame the government for NOT KEEPING their properties prices HIGH so that they can get the 'expected' appreciation in capital gain or profit!! See how the vicious and UNSUSTAINABLE cycle has been created?!;
3. for those properties with 99-year lease, the ONLY WAY to gain REAL profit or capital gain is to SELL before the lease period is UP!! Because when the lease period is UP, the owners of the leasehold properties will HAVE TO RETURN the land and the building to the landlords. In HDB flats situation, to the GOVERNMENT. The owners, or more correctly, the leasees, will have a BIG FAT ZERO value!
So, it will be interesting to see what will happen to the 'market' when EVERYONE is trying to sell his or her or their HDB flats to LOCK DOWN the capital gain or capital profit! Will the prices COLLAPSE? It should. Alas, if only the government WILL allow it to collapse! I wish it would if it had created a monster. The better option is to TAME the monster and then kill it softly without causing too many collateral damages! I pray for the policy makers to achieve this soon! For the sake of the next generation of citizens who can raise a 3-kid family without worrying too much about paying for a public 'roof over their heads' so that they can be productive at work and at home free of undue stress and pressure!
"HDB resale prices drop for the first time in 4 months - The Straits Times 6 August 2015
SINGAPORE - HDB resale prices dropped 0.5 per cent in July, as it last month compared to June 2015, reported SRX Property in its HDB resale flash report .
Resale prices of HDB 3 Room Flats remained flat while prices of HDB 4, 5 Room and Executive Flats went down by 0.7 per cent, 1.2 per cent and 0.9 per cent respectively.
According to the SRX Property Price Index for HDB Resale. prices have dropped 4.3 per cent from July 2014, year-on-year, and prices have declined 11.4 per cent since the peak in April 2013. Price change in June 2015 has been revised from a 0.1 per cent increase to no change.
In July 2015, HDB resale prices decreased by 0.1 per cent in mature estates and 0.9 per cent in non-mature estates. Year-on-year, prices in mature estates have declined 2.6 per cent from July 2014, while prices in non-mature estates have declined 5.5 per cent from July 2014, according to the SRX Property Price Sub-Indices for HDB Resale.
Resale volume has decreased. 1,552 HDB resale flats were sold in July 2015, a 9.2 per cent decrease from 1,709 transacted units in June 2015.
Overall Median T-O-X was NEGATIVE $1000 in July 2015, down from POSITIVE $1,000 in JUNE 2015. Median T-O-X for HDB 3-Room, 4-Room and Executive flats in July 2015 saw NEGATIVE $1,000, NEGATIVE $1000, and NEGATIVE $10,500 respectively. 5-Room flats posted a POSTIVE $1900 median T-O-X."
Hmm, it is SUCH a BAD THING that HDB resale prices have dropped for the 1st time in 4 months? It really depends on what mind-set you are keeping and if you have a long term sustainability view or not!
Lessons for me are:
1. buying HDB flat for a big capital profit, or capital appreciation, is STILL a long held and long sustained view by the authorities and hence the laymen given that the government constantly says that: your appreciating HDB flats, not mentioning the even bigger increases noted in private properties market! Also, let's not forget the mantra of: 'your appreciating property is YOUR SOURCE of fund of last resort for your RETIREMENT'!!;
2. the truth is the properties prices STILL have to follow the supply-and-demand principle all things being equal! When there are over-demand, the prices go up. When supplies are rushed to meet the excess demand and overshot, the prices come down. Of course, the 'real estate' market is subject to FREQUENT and GENEROUS intervention by the government as it is concerned about: instability with home buyers and existing owners LOSING OUT when prices TRULY reflect the oversupply situation! WHY? It is afraid that the 'new buyers and existing owners' will blame the government for NOT KEEPING their properties prices HIGH so that they can get the 'expected' appreciation in capital gain or profit!! See how the vicious and UNSUSTAINABLE cycle has been created?!;
3. for those properties with 99-year lease, the ONLY WAY to gain REAL profit or capital gain is to SELL before the lease period is UP!! Because when the lease period is UP, the owners of the leasehold properties will HAVE TO RETURN the land and the building to the landlords. In HDB flats situation, to the GOVERNMENT. The owners, or more correctly, the leasees, will have a BIG FAT ZERO value!
So, it will be interesting to see what will happen to the 'market' when EVERYONE is trying to sell his or her or their HDB flats to LOCK DOWN the capital gain or capital profit! Will the prices COLLAPSE? It should. Alas, if only the government WILL allow it to collapse! I wish it would if it had created a monster. The better option is to TAME the monster and then kill it softly without causing too many collateral damages! I pray for the policy makers to achieve this soon! For the sake of the next generation of citizens who can raise a 3-kid family without worrying too much about paying for a public 'roof over their heads' so that they can be productive at work and at home free of undue stress and pressure!
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