I read with amusement on the justification that HDB flat is affordable for the ordinary citizen. The fundamental problem with HDB flat pricing is that the price formula is flawed as it is pegged to market rate.
Currently, new HDB flat is calculated based on market rate less subsidy. The full certain of this subsidy is not known but it appears to be not indexed to property inflation rate.
First, what is the property inflation rate? The property inflation rate is simply average increased in property price over a certain period. According to HDB HERE, HDB resale prices have increased by an annualized 8.17% per annum over the past 21 years. This is based on the HDB index 1990 first quarter index of 33.6 to 2011 first quarter index of 174.8. For the past five years, the annualized inflation for resale HDB was a whopping 11.......
I read with amusement on the justification that HDB flat is affordable for the ordinary citizen. The fundamental problem with HDB flat pricing is that the price formula is flawed as it is pegged to market rate.
Currently, new HDB flat is calculated based on market rate less subsidy. The full certain of this subsidy is not known but it appears to be not indexed to property inflation rate.
First, what is the property inflation rate? The property inflation rate is simply average increased in property price over a certain period. According to HDB HERE, HDB resale prices have increased by an annualized 8.17% per annum over the past 21 years. This is based on the HDB index 1990 first quarter index of 33.6 to 2011 first quarter index of 174.8. For the past five years, the annualized inflation for resale HDB was a whopping 11.......
