PRs, foreigners form 12% of HDB dwellers
February 23rd, 2010 | 
Author: Dear Dr Foo,
On 19 Feb 2010, Straits Times reported you saying that PRs and foreigners are not likely to have caused significant increases in flat prices because they make up only 12% of HDB residents. Firstly, the fact that PRs and foreigners make up 12% of HDB residents doesn’t mean they occupy 12% of HDB flats. They could occupy more or less flats depending on average family size.
Secondly, it is the flats that are sold that determine resale prices rather than the flats unsold. Suppose there are 100 flats of which 12 belong to non-Singaporeans. Of these 100 flats, 5 flats are sold. Would the resale price be determined by the 5 flats sold or the 12 flats belonging to non-Singaporeans? The resale price will be determined by the 5 flats sold, not the 12 flats belonging to non-Singaporeans unless they are part of the 5 that are sold. Hence the fact that PRs and foreigners make up only 12% of HDB residents is immaterial to the pricing of flats.
Lastly, we cannot conclude the effects of PRs and foreigners just by looking at the HDB resale market alone because the resale market is also affected by the buying or renting activities of PRs and foreigners in the private property market. When PRs or foreigners take up private dwelling units, either by renting them or buying them, less becomes available for Singaporeans who would in turn be forced into the HDB resale market that would in turn lead to higher resale prices.
Thank you
Ng Kok Lim
Posted in 
Gov tie you down with huge amont of housing loan so you will wanna continue working & work non-stop.
Imagine if tommorrow Gov say all HDB flat must sell back to HDB instead of open market & to purchase, you must also apply to HDB. BUT price very cheap $50k-$80k depend on size.
So everyone can settle their loan super fast (maybe within 5yrs). Everybody will have so much extra money to spend, cos no more installment to pay, if have also very low rate.
Few years down the road, what will happen?
we all don’t work. everyone save enough money to enjoy life.
no one wanna work under others anymore. all wanna be boss.
the whole SG will sink.
So everyone must be tie down in order to work.
work till you die & still in debt.
HDB must cost above 1million & repayment using 3 generation.
future HDB might only be 50-60yrs lease instead of now 99yrs
Good Luck Singaporean.
If thats what you want, with the rate SG is going, very soon you will get it.
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Buyers, sellers and agents based their pricing on transacted prices which can be assesses via HDB’s own web site. As scoff mentioned, the transacted prices may be based on the PR’s transactions. So the high prices transacted may be from only the PR’s transacted prices.
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@scoff Lower HDB prices = more money in CPF for retirement. You can’t take out the money for business and investments unless you’re ancient. So no one wants to work? Well, once they reach that age, no one wants them to work for them.
Im not comparing you to a buttplug, but your head seems to be stuck up for ass for a long time alrdy.
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UNACCEPTABLE! THE PERCENTAGE SHOULD BE >>>ZERO<<< !! HDB flats are public-money sponsored flats for locals to build families!!
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Let me add that in many countries, PRs CANNOT even get a housing loan from a bank, for fear of them running off before paying them. Even for rent, some locals will not rent their houses to foreigners.
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PRs and foreigners are not likely to have caused significant increases in flat prices because they make up only 12% of HDB residents;
What about the number of PRs who were converted (encouraged?) to new citizens in a short time? These are foreign born outsiders too who do not have national service obligations but yet are bunched together with the local born. If we add in the total, the new figure could quickly double or even triple in my assumptions. The 12% figure is therefore not convincing.
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folks,
Singles in singapore that i know are now even renting a common room outside. Can anyone help singles in singapore???
They are the ones who are the sandwiched. Neither can they afford to buy from the high rising resales markets, nor can they allow to buy from HDB directly. Either way, they are sandwiched in between…
Pls don’t say ask them to stay with relatives or family members, once u reached 35 and above, unmarried, you will be somehow be seen as a additional burden to your relatives and even your own family members, most of the singles i cum in contact with have sad stories to tell… but there is no way can they voice out their grievances…
So folks, govt is not doing their job for these group of categories, sooner or later, i think singles is also going to be homeless too as the rental will eats up their whole savings also, and they don’t earn much also…..
VOTE ALL PAPPIES OUT! STRIPE THEM TO NAKEDNESS!!!
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Hmm …. I wonder how many commentators here are involved in property transactions or real-estate business. Property prices have gone up across the board – both private and HDB. When private property prices go up, HDB resale prices follow. Many factors have driven prices up and these were already mentioned.
Sellers asked for the sky. Kiasu buyers just pay because they have fat salaries, cheap loans, and plenty of spare cash from rich parents. A real-estate property is a prized possession. Your social status is measured by the value of your nest.
Bloggers here lament about PRs but little do they know that it is the rich who are speculative players. Workers on fixed salaries and family to support (like most PRs) are not willing to pay high prices but there is little choice if they need a roof over their heads.
The issue to be address: is there a genuine demand or artificial speculative activities. If there is genuine demand, the solution is to build more flats. Just like if you have more customers, you open more shops!
Next, you must understand that every seller is greedy. And agents do nothing to bring prices down. It is their selfish interest to earn more commissions.
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I wonder if there is a war now. Who do you think our soldiers will point their rifles at? Likely our govt who made them feel so angry and betrayed?
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PRs SHOULD NOT even be allowed to buy flats in the 1st place!
PUBLIC FLATS are FOR LOCALS!
We pay taxes to subsidize PRs so that they can buy flats???????
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You mean to say that PR/FT can buy HDB flat.
I thought HDB is only for SIngaporean as it is heavily susidised by government. Are we also subsidizing the FT/PR.
My take is that they should only be allowed to buy the private housing put not the public housing housing.
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brilliant observation, Mr Ng. have you thought of applying for job as Minister of ND and HDB? i heard a vacancy will soon be available.
today I read in the papers about raising of development charge. you’d think – ok, the govt is putting a higher charge on these en bloc people. sounds like the average joe will be fine right?
no.
as a businessman, i would en bloc a site, pay the higher development charge, bill the next buyer and hence raise my launch price blaming it on the govt charge. as a resale flat neighbour to this en bloc site, i’ll say look, the new flat is so expensive, i can raise my price too.
so enjoy guys, BUY BUY BUY before it’s too late! you will never see the likes of these high prices any more, because it will be even HIGHER! that is, if you let them have their way at policies.
or is it time for a change?
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oh by the way, Mr Ng, you can forget about opinions like this being openly discussed in the newspapers. once i had dinner near our national newspapers HQ building and heard how some of the staff discuss about property.. they were echoing the government rhetoric, saying they didn’t understand why people wanted prices to be lower, not higher, so they were not keen on publishing the other side of the story to dispel this misconception about property.
and all this is without the govt giving the official gag order to the newspapers not to publish. this is the real opinion of their staff! not even self-censorship!
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