Tuesday, October 25, 2011

The wicked legacy of Mah Bow Tan: High HDB price to stay

CNA reported that a new Design, Build and Sell Scheme (DBSS) project, Trivelis, will be launched this week at Clementi Ave 4, about five minutes from Clementi Mall and the MRT station.

The developer of the project, EL Development Pte Ltd, has also released indicative prices for the units - S$375,000 to S$470,00 for a 3-room flat, S$530,000 to S$650,00 for a 4-room unit, and S$658,00 to S$770,000 for a 5-room flat.  

EL Development said the size of the units will be from 646 square feet for a 3-room flat to 1,130 square feet for a 5-room unit.

Mah Bow Tan apparently eager to boot-lick Kuan Yew by cranking HDB to ever crazy price. In theory, any house that is more than 6 times the annual family income is considered a bubble. The ideal house price should be around 3 times the annual family income.

A 1,130 sq feet abode is extremely small by any standard, and PAP would want us to pay S$770,000 for it, which is around 12 years of our unbelievably rigged family median income of S$5000. (your wife must work then can)

Once losing to asset inflation, there is no way to regain the ground back  
Given the extreme leverage of banks, there is no way PAP will allow property price to drop in any significant manner. A 30% drop in property from the peak 5 years ago in USA has actually cast all US banks into zombies.

The economics crisis in 1997 saw Tat-Lee bank close shop.

PAP has cheated Singaporeans
Singaporeans acquiesced to the robber Land Acquisition Act on the implicit social contract that housing remains cheap. Right now, PAP has reneged the social contract, and condemned Singaporeans to slaves of banks and landlord. PAP has profited massively through time arbitrage of land. They have corrupted the minds of honest Singaporeans by rewarding speculators and punishing savers.

Eventually, Singaporeans will pay a massive price for bringing PAP to power.  


Anonymous said...

Hi veritas. At age 17, I really am angry that property price will increase exponentially. By age 30. 3room flat will cost 1million dollar each.
I don't even know how can the next gen can believe in PAP anymore... subsidized housing won't even work.

Suppose we remove the 2million FT, property price sure fall.

5 Year Plan said...

Hi, Anonymous

As veritas has pointed out, the PAP cannot let property prices fall.

If property price fall, the Singapore banks will fall. (Reason: the banks are over-exposed to property.)

The only way out is to QUIT Singapore. Emigrate. Become a citizen of snother country. Sell your/family's HDB. Then renounce Singapore citizenship and cash out your/family's CPF.

Governments have 5 year plan, 10 year plan, etc. YOU also should have your own 5 year plan.

At age 17, you have a long way to go, a whole lifetime ahead of you. So plan ahead! Find out which jobs are always in demand (e.g. nursing, physiotherapy, etc) then go study these courses (in a foreign Univ, of course). Then get a job in your chosen country, work at your job. In about 5 years, you will be eiigible to apply for citizenship.

Beyond the shores and restrictions of Singapore, the possibilities are endless. Go do your research and best of luck!

Anonymous said...

The problem is the HDBs are owned by Singaporeans and PRs. It is also because they are selling their resale properties at sky-high prices, making it difficult for younger people to buy one. We should make these greedy homeowners sell at rock-bottom prices. They need to be taught a lesson and made to sell their apartments only at 50% of their market value, or not be allowed to sell! Once we set such a cap, the property prices will drop and young people can have a chance.