HDB will be the price-setter: Khaw

[pianist]

he only want to change for non mature estates only..is just a small scratch on the back..

[egghead]

he only want to change for non mature estates only..is just a small scratch on the back..

That is simply because new BTO are mostly in non mature estates? In your view, what should he do for mature estate?

[nitro]

Perhaps there will be action soon. It was hinted by KBW that he wants to bring down flat prices to 4 years of median annual income, instead of the current 5.5 years. That would entail a 20% to 30% fall!

HDB resale market : dominates by PR & locals (>$12K)
ECs - HDB upgragders + sandwich class (<$12k)
Mass market PC - locals, PRs and FTs

Even if BTO corrects by 20%-30% in non mature areas, it will only be advantage to locals (<$10K). Those who cant qualify for BTO, will still have to go for HDB resale and mass market PC.

Will it really bring down the price of HDB resale and mass market PC prices?

An average mass market PC is $1million (3bedders), if corrects by 20%, that means $200K drop in valuation. Same theory applied to EC.

As a 1st timer, should i go for BTO or EC now?

[thefarside]

As a 1st timer, should i go for BTO or EC now?

Hi nitro, apart from financial considerations (price, loan quantum, servicing ratio, cash on hand) you should think about
- distance to work
- future plans for family
- childcare needs (parents or 3rd party?)
- schooling needs

You see, sometimes you settle on a house that is perfect for work, and seems to be ok on space, but find that you cannot get childcare when you have one (happens in estates where there are many new BTO HDBs), and then have to settle on a solution that you don't like (buy car to send to another place, hire maid to look after in situ etc).

BTO - waiting time at least 36 months. you ok with this?
EC - see your own understanding on price, also need to wait at least 36 months ( so pay more + also need to wait )
Resale - COVs are high at least 40k for larger flats in non mature estates. Mature estates even higher... plus cui units means more cash for make-good renovation works

I think you (and your partner) should consider in the following order
- where to stay taking into account those consideration
- your attitude towards waiting (seriously, 3 years???)
- financial capacity (income, cash on hand)

Just my two cents. Have been through this road before 6 years earlier... but it was a different market back then. I had a choice between a well-renovated 5 rm (115 sqm) near Boon Lay MRT (5 years), and a 20-year old but no modern but also not so cui 5-rm (122 sqm) near town, with a price difference of 60k.

Luckily I chose the latter, and did not have the financial lens to see the 60k as bigger than the buffalo wheel back then. Ignorance is bliss...

[VIChris]

Finally a minister who dare to change the status quo, acknowledge and reverse policies that are not working anymore. It is definitely not easy to change a policy that is so ingrained in the fabric of HDB. I could imagine the existing policy makers in mnd and hdb speaking up against it, as implementing this would make all their previous explanations on why market based price is right seem wrong.

Need someone like him in manpower ministry as well.

The system work this way, top down. Agencies CEs will look at the top guy's direction not the other way round.They will have to explanation which they are their fortay ... "market fundamental has changed...."

Looks like bringing the housing price back to earth is not the "urgent tasks" since it is a cash cow. Probably, we have to wait for the next economy down cycle with slow down of immigrants to bring the housing price back to earth. How sad....

[Temperament]

Finally a minister who dare to change the status quo, acknowledge and reverse policies that are not working anymore. It is definitely not easy to change a policy that is so ingrained in the fabric of HDB. I could imagine the existing policy makers in mnd and hdb speaking up against it, as implementing this would make all their previous explanations on why market based price is right seem wrong.

Need someone like him in manpower ministry as well.

The system work this way, top down. Agencies CEs will look at the top guy's direction not the other way round.They will have to explanation which they are their fortay ... "market fundamental has changed...."

Looks like bringing the housing price back to earth is not the "urgent tasks" since it is a cash cow. Probably, we have to wait for the next economy down cycle with slow down of immigrants to bring the housing price back to earth. How sad....

No! i think we only have to ensure the Papies lose 2/3 majority in Parliament for the next GE in 2015/2016. Singaporeans have been hookwinked too many years already . Don't believe Papies's promises anymore.

[a74henry]

To reach the population target, the long term price trend is up when coupled with inflation.