Solutions to the HDB conundrum
By Eight percent per annum  •  May 1, 2011
This is a continuation of the last 2 posts:
Are HDB prices really expensive?
What's wrong with HDB prices?

What is the solution to this huge conundrum of HDB prices being much higher vs its history and vs some Singaporean household income (esp lower income groups) yet lower in terms of rental yield and absolute prices vs other Asian cities?

The Opposition had come up with the cost plus solution. ie if the cost of building a HDB flat is $150,000, then the Govt should just put a tag of say $200,000 and sell it to Singaporeans. While this solution is pleasant to most would-be buyers, it creates huge problems for the system.

First by making new HDB prices widely different from current market prices, you run the risk of enticing speculators to join in the fun. Already, there are young couples who had tried to game the system just ...
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By Eight percent per annum
8% Value Investhink is a value investing / critical thinking knowledge platform with the goal to share knowledge, help understand investing and finance, and help develop critical thinking skills. One important objective would be to help others understand the concept of value and avoid overpaying, especially for property.

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