In recent months, HDB has been placing advertisements in the press, mainly to inform the public that the prices of pre-buy HDB flats have remained stable over the years. Although the prices have increased, the Government's subsidy for first-time buyers has also been raised accordingly.

As for the resale prices of HDB flats, with the exception of a few multi-million dollar deals, which are unique selling points, they represent only 1% of the total resale transactions in the last two years. At the same time the government is giving higher allowances to first-time buyers.

With this in mind, the median price for HDB flats and resale flats in non-mature areas to be launched in the first half of 2022 will require most first-time buyers to use less than 25% of their monthly salary to repay their home loans after receiving various home purchase allowances.

This is well below the international benchmark of 30 to 35 per cent. Home buyers who use their monthly CPF contributions to make their mortgage repayments have to use little or no cash at all.

Of course, the above is based on non-established areas. For other cases, it is a different story.

In Singapore, the majority of first-time home buyers are young newlyweds. They need their own space and therefore most of them do not want to live with their parents after marriage.

This is understandable in this day and age.

When people buy a HDB flat, the two main considerations are price and time. The second is location and resale price later on.

In terms of price, it is important that we live within our means and do not go for the high end.

In terms of waiting time, it is best not to wait more than four years.

In this case, buying a four-bedroom HDB flat in a non-established area is the best value for money.

There are several reasons for this: the price is cheaper, perhaps more than 40% less than in established areas.

According to a recent newspaper advertisement, the current offer of a four-bedroom HDB flat in Tonga is $5,000 per month for a first-time buyer, with a subsidised sale price (before HDB subsidy) of $350,000, an additional housing allowance of $45,000 and monthly instalments of $1,067.

This is more than enough if paid by CPF contributions, so there is no need to use cash. I wonder if people have noticed that when they own their own home in Singapore, they take home more cash each month than if they rent out their home because they cannot use their CPF to pay the rent.

A four-bedroom HDB flat has three team rooms, a living room and a kitchen.

This is more than enough for a small family. The first room is the master bedroom. The third room can be used as a home office or guest room, so it is not a problem for parents to come and stay for a short time.

This arrangement will last for at least 15 or even 20 years. If there are no children, it is possible to live there until the end of one's life, so there is no need to upgrade to a larger HDB flat, as a five-room HDB flat is just an extra dining room.

When people are shopping for a HDB flat, they want to get it as soon as possible and the success rate is usually measured by supply and demand.

The number of new HDB flats available for pre-purchase at any one time is mostly four-roomed flats in non-mature districts, and the success rate of applications is therefore increasing.

HDB flats are bought for self-occupation, not for rent, so proximity is not very important. Public transport is becoming more and more developed in China.

Some people have been living in a HDB flat for too long, have paid off their mortgage and have a higher income, so they want to upgrade to a private flat or landed property.

Therefore, when shopping for a HDB flat, they will consider whether they can get a better return if they resell it later.

It usually takes about 15 years for a new town to develop from a non-mature area to a mature area, and the resale price will naturally increase by then. It is difficult to predict how much it will increase. This is because it involves many factors.

The current shortage of supply is not because there is a housing shortage, as in other countries, but because times have moved on and everyone wants a more desirable living space.