KHAW CONFIRMS VALUE OF HDB FLATS WILL BE ZERO AT END OF 99-YEAR LEASE

[opmi]

well that's about 1% depreciation per year, if the HDB is worth 400k that's about 4k gone a year in value?

If you are referring to BTO, the $$$ goes into the reserves. Locked up for a 'rainy day'

[valuebuddies]

HDB would give 1-for-1 replacement before they demolish the old HDB. But either you have to top up to get the same sqft or don't need to top up to get a smaller unit. I knew someone who were forced to move to Pioneer after the old blocks in Boon Lay kena demolished. So never ever buy a too-old flat because you don't know when you will be chased out.

[Temperament]

Flats built in the 80s has GPR 1+. Now flats have 2.8 to 3.5 (if near to MRT).
Take back 1, then built 3 more. Likely to SERS.

Punggol/Sengkang flats less chance for SERS when they already GPR 2 to 2.8x. Unless HDB follow HK, GPR 6-8x. Then those mature estates lagi SERS-able.

I rather stay in old, big resale flat than Punggol/Sengkang new flats.

Definitely.
Mine is also 4A resale which i downgraded from a maisonette.
My 4A flat was always mistaken as a 5RM flat compared to Punggol/Sengkang new flats. And this happened about 15 years ago when my renovation contractors always asked whether mine is a 5 room flat or 4 room flat. Imagine "professionals" like contractors could mistaken a 4A as a 5 room flat 15 years ago. And you guess it right, they were comparing Punggol/Sengkang new flats, even then at that time. i suppose now BTO flats are even smaller but so much more expensive.
Very, very sad.

[Freenasi]

This should be a warning to the PRs who are "investing" in HDB for rental/capital appreciation. Many bought with the idea that the HDB prices will never fall.

[specuvestor]

This should be a warning to the PRs who are "investing" in HDB for rental/capital appreciation. Many bought with the idea that the HDB prices will never fall.

Man on the street thinks long term HDB prices will never fall.

I've posted this before: if u assume some 4% nominal appreciation annual, you will see prices start to stagnate around 60-70 years old and decline thereafter. We don't have flats that old YET.

So the key is whether govt will allow HDB flats to enter a structural declining phase. This will have huge impact on the population psyche and perception. Serious implications for the property market and political environment. A way to avoid the paradigmn shock is of course HDB to recover flats that are more than 60 years ago via SERS or otherwise.

But on a policy point of view, 99 years make a lot of sense. It provides for renewal of landscape.

[opmi]

This should be a warning to the PRs who are "investing" in HDB for rental/capital appreciation. Many bought with the idea that the HDB prices will never fall.

I thot PRs must sell flats/landed prop if they dont convert to citizens by the 10th year.

[opmi]

This should be a warning to the PRs who are "investing" in HDB for rental/capital appreciation. Many bought with the idea that the HDB prices will never fall.

Man on the street thinks long term HDB prices will never fall.

I've posted this before: if u assume some 4% nominal appreciation annual, you will see prices start to stagnate around 60-70 years old and decline thereafter. We don't have flats that old YET.

So the key is whether govt will allow HDB flats to enter a structural declining phase. This will have huge impact on the population psyche and perception. Serious implications for the property market and political environment. A way to avoid the paradigmn shock is of course HDB to recover flats that are more than 60 years ago via SERS or otherwise.

But on a policy point of view, 99 years make a lot of sense. It provides for renewal of landscape.

You mean 60-70 years lease remaining??

We have those, former HUDC flats and Tiong Bahru SIT flats.

[specuvestor]

30 or so years lease remaining... which we haven't reach YET. By then my guess is that the valuation is more like commerical properties 30 years IRR kind of calculation via assumed rent.

[Freenasi]

This should be a warning to the PRs who are "investing" in HDB for rental/capital appreciation. Many bought with the idea that the HDB prices will never fall.

I thot PRs must sell flats/landed prop if they dont convert to citizens by the 10th year.

Not that I know of. The rules are generally quite indistinguishable betw PRs and citizens until lately we see small change. All I know is many PRs want to buy HDB so that they can rent few rooms out to cover the instalment and at the same time wait for capital appreciation.

[corydorus]

Wonder is re-sale worth so high price now. People paying more than 1M for Bishan Resale ....
A case of mass market ignorant ?