Post by oldman on Oct 19, 2013 9:03:22 GMT 7
I think a fairer gauge of the HDB resale market price is found here: www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatResaleIndex?OpenDocument
In the 3rd Q of 1995, the index was around 100. In the 2nd Q of 2003, the index was also around 100. This means that if one were to have bought a HDB resale flat between 1995 and 2003, it is unlikely that he could have made money. I recall that in 1997, a Bishan exec massionette made headlines when it was sold for $780,000. This same massionette was then sold for $550,000 in 2007 with a lot less fanfare.
Today, the index is at 194, almost double that of 2003. Private property prices too have risen significantly during these years. Hence, HDB resale prices do go up and down with the general property prices, though in a more subdued and contained manner given that ultimately, the price of a resale HDB unit is dependent on the price of a new HDB unit. And the price of a new HDB unit is determined by our government.
So long as Singapore is successful, HDB represents one of the safest investments any one can make. In fact, everyone who is eligible for a new HDB flat should consider this to be the first investment he makes even before he invests a single cent in stocks and shares.
If he is not eligible for a new HDB flat, he should consider a resale unit. But of course, he has to buy this at the right time. However, I don't think that this is the right time to buy any other types of properties. Now is the time to accumulate cash and be very patient.
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Musicwhiz wrote:
I posted this in another forum:-
Recent transactions reported over the last two days:-
1) Executive Masionette in Bishan sold for $980,000, of which $200,000 was the COV. Valuation without COV = $780,000
2) Executive Masionette in Queenstown sold for $1,000,000, of which $195,000 was the COV. Valuation without COV = $805,000
Considering that transaction (2) came hot on the heels of transaction(1), I think one can conclude that the base prices of resale HDB are moving UP! In this case, from $780,000 to $805,000......
In the 3rd Q of 1995, the index was around 100. In the 2nd Q of 2003, the index was also around 100. This means that if one were to have bought a HDB resale flat between 1995 and 2003, it is unlikely that he could have made money. I recall that in 1997, a Bishan exec massionette made headlines when it was sold for $780,000. This same massionette was then sold for $550,000 in 2007 with a lot less fanfare.
Today, the index is at 194, almost double that of 2003. Private property prices too have risen significantly during these years. Hence, HDB resale prices do go up and down with the general property prices, though in a more subdued and contained manner given that ultimately, the price of a resale HDB unit is dependent on the price of a new HDB unit. And the price of a new HDB unit is determined by our government.
So long as Singapore is successful, HDB represents one of the safest investments any one can make. In fact, everyone who is eligible for a new HDB flat should consider this to be the first investment he makes even before he invests a single cent in stocks and shares.
If he is not eligible for a new HDB flat, he should consider a resale unit. But of course, he has to buy this at the right time. However, I don't think that this is the right time to buy any other types of properties. Now is the time to accumulate cash and be very patient.
------------------------
Musicwhiz wrote:
I posted this in another forum:-
Recent transactions reported over the last two days:-
1) Executive Masionette in Bishan sold for $980,000, of which $200,000 was the COV. Valuation without COV = $780,000
2) Executive Masionette in Queenstown sold for $1,000,000, of which $195,000 was the COV. Valuation without COV = $805,000
Considering that transaction (2) came hot on the heels of transaction(1), I think one can conclude that the base prices of resale HDB are moving UP! In this case, from $780,000 to $805,000......