Years to correct supply-demand imbalance for HDB flats: Khaw
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By Joanne Chan | Posted: 24 July 2011 1656 hrs
SINGAPORE: National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
He said there is currently an imbalance between supply and demand - and new Build-To-Order (BTO) flats take three years to build.
Mr Khaw said this in response to questions from reporters on the sidelines of a community event on Sunday.
He also expressed confidence that resale flat prices will stabilise but stressed that the problem of high prices cannot be solved overnight. He urged Singaporeans to be patient.
On Friday, figures from the HDB showed prices rising by 3.1 per cent in the second quarter of this year, nearly twice the previous quarter's 1.6 per cent.
"Why do prices go up? It's very simple, because there's an imbalance in supply and demand. Supply means... build more. (But) you won't see the flat until three years later. New housing plans will have effect on the resale market. So the more I push out, I'm sure there's some influence," said Mr Khaw.
On the demand side, Mr Khaw advised young couples who have a place to stay in currently, not to get too excited and jump into the resale market. Instead, they should continue to apply for a BTO flat. He also urged upgraders who already own a flat to hold off on their plans, so as not to crowd the market.
Mr Khaw added that the property cooling measures implemented by the government have reduced unnecessary demand stemming from speculation.
Mr Khaw also explained why the HDB stopped releasing the median Cash-Over-Valuation (COV). The minister said the figure is "misleading" and cannot be used to judge if COV has gone up or come down.
He added that the median figure is dependent on the house type and location of flats that are sold, which can change from month to month.
Instead, the HDB will continue to offer a breakdown of COV according to location and house type, which Mr Khaw said, is the information Singaporeans need when they decide on whether to buy a home.
- CNA -
So he is indirectly saying MBT did not do his job properly?
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Originally posted by charlize:
So he is indirectly saying MBT did not do his job properly?
National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
nope, he is trying to taking his time to wait for the next election.
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no, he is saying "supply n demand"
what can i do if ppl wan to buy higher?
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My view is that they have to review the COV component for resale flats now.
Take an extreme example: There are certain segments of the population who are unable to apply for new BTO flats directly eg, buying 2nd/3rd flat, singles, divorcees, downgraders from private property etc.
So you can release many new BTO flats into the market but this segment is unable to buy because of certain HDB restrictions.
Since COV has been climbing higher and higher by the month, this group is being squeezed if they cannot afford to cough up the 5 or 6 digit COVs.
This should not be the case because HDB is public housing. In an extreme case, whereby only the rich are able to afford the 6 digit COVs, you are doing the above segments a disservice because now resale flats have become "reserved" for the "richer" class. This only creates a wider rift in society.
The minister should look into this asap.
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Originally posted by Clivebenss:
National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
nope, he is trying to taking his time to wait for the next election.
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what's the odds now that Khaw will suffer a heart attack again by the end of the year?
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i feel the reason is (choose the 1 that you feel like)
1. its a tactic to cover that B.Ma Bao Tan for his argurement. cause if he come and settle the matter quickly, that mean that B.Ma Bao Tan have been lying to us all along that HDB price cant goes down.(its a tactic to cover up for B.Ma)
2. Mr Khaw asking Singaporean to wait because they feel they should let their precious FT buy flats 1st because they are able to paid more, they can let HDB earn more 1st. then come those stupid singaporean that always wan to hav subsiys and grants and others. (complain many many)
3.HDB really have problem settle this matter so they need time
4.SIngaporean doesnt need a flat so fast, they can go JB and buy flats if they are not happy with singapore waiting period.
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Originally posted by the Bear:
what's the odds now that Khaw will suffer a heart attack again by the end of the year?
Np, heart surgery only $8.50. -
I hope the Government will realise that whatever decision they make now will impact Singaporeans many years down the road thus they need to be responsible and take ownership of these current problems and make them right!
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Years down the road they will complain.
They buy a flat at $230,000, ten years later it is still $230,000 and complain why the price don't go up.
Buy low, sell high. Make the government stupid.
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Now minister asking people not to be too eager to upgrade and buy the resale flats with high COV now.
He is saying wait for a while more.
Don't tell me he is going to come up with some new policy to try lower the prices from this category?
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Originally posted by mancha:
Years down the road they will complain.
They buy a flat at $230,000, ten years later it is still $230,000 and complain why the price don't go up.
Buy low, sell high. Make the government stupid.
Prices must increase but not increase alot. like 2000 150 K 2010 250 K Recently the price increases so much. My frenz house 350 K now can sell 500 K. My uncle buy 250 K now can sell 450 K -
Originally posted by Yui Hirasawa:
Prices must increase but not increase alot. like 2000 150 K 2010 250 K Recently the price increases so much. My frenz house 350 K now can sell 500 K. My uncle buy 250 K now can sell 450 KIf prices and cov keeps going higher and higher, public housing will soon be out of reach for the common Singaporean.
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Originally posted by charlize:
If prices and cov keeps going higher and higher, public housing will soon be out of reach for the common Singaporean.
Become Hong Kong or worst than Hong Kong lor. -
Originally posted by Yui Hirasawa:
Become Hong Kong or worst than Hong Kong lor.HK that bad meh ?
I only know their air quality not too good.