Singapore icon
icon Singapore icon
HDB housing prices are too high to afford?
Dec 9, 2022
HDB housing prices are too high to afford? Singapore
By   Internet
  • City News
  • HDB flats
  • HDB supply
  • HDB status
Abstract: According to real estate analysts, it is not fair to compare current housing prices with those of decades ago, and if pre-purchase HDB flats are set at very low levels, it will only increase the government's financial burden.

According to MediaCorp's English-language news network CNA, HDB resale prices jumped 25.5% from the third quarter of 2020 to the third quarter of 2022.


The increase is of greater concern because it comes during the coronary pandemic.


In addition, inflation has pushed up daily expenses, prompting people to think more about the affordability of housing prices.


The Housing Development Board released a statement the day before yesterday (7), explaining for the first time how the pre-purchase HDB projects are priced.


The statement explained that the pricing method is not linked to cost, but is based on the buyer's income and loan repayment ratio to determine whether the buyer can afford the price.


HDB also stressed that the authority does not make profits from the sale of pre-purchased HDB flats.


Speaking to CNA, Mak Chun-wing, head of research and consultancy at real estate agency ERA Industrial Network, pointed out that it is unfair to compare today's HDB housing prices with those of decades ago.


It is true that house prices have risen in recent years, but at the same time, buyers' incomes have also increased.


"The key is the price of pre-purchased HDB flats and whether it is still within people's affordability."


He pointed out that HDB's approach is to keep the price of pre-purchased HDB flats within people's affordability, but that cannot be unjustifiably low.


As household income and other prices rise, the cost of HDB development follows suit.


An important factor in maintaining pre-purchase HDB prices is the government's ability and willingness to continue to grant public housing subsidies.


For shoppers with lower household incomes, the government will then provide more subsidies.

icon icon
HDB housing prices are too high to afford?