Tuesday, August 06, 2013

Strong demand for new HDB flats for singles

There is a strong take-up rate of the new 2 room HDB flats by singles. This is a no brainer. 

If there is a big pool of ready buyers with money, and a subsidized flat is being offered, e.g. through a large cash or CPF grant, it will surely attract many buyers. 

While most applicants need it for their own occupation, some may use it as an "investment" to earn rental income. I do not know the details of how the investment opportunity may work, but I will not be surprised if some of these devices are uncovered in time to come.

The positive side is that the new measures will take off the pressure on resale HDB flats. I expect the prices of resale flats to come down, and that will be good for most people - except the speculators.

1 comment:

yujuan said...

Ever wonder why the ERA boss is cashing out his property business.
Is it because the average Joe is climbing on board now, it's the start of decline, as in all typical asset investments.
So he thinks running for the exit door now is the smarter move, moving his 100m cash hoard abroad to start anew.

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