Wednesday, April 05, 2017

What will happen to the value of HDB flats after Lawrence Wong's announcement?

National development minister Lawrence Wong said that the value of HDB flats will become $0 at the end of the 99 year lease. What will happen to the value of HDB flats after this announcement?

Will the flats continue to maintain or increase its value due to the shortage of land and the demand for housing in Singapore? Will the price drop sharply now that the buyers realize that is is a depreciating asst?

The results of the votes in the Wisdom of The Crowd website is now available for your viewing.

1 comment:

Anonymous said...

I think PAPies have done a disservice to citizens over the last few decades by not stressing the limited value of HDB, but instead to keep on harping on "asset enhancement" and 90% "homeowners" in S'pore. They only hinted and even if published in newspapers was often hidden as a 1-liner among the pages of other articles. Only now when more & more HDB flats are approaching 50 yrs or older, then PAPies suddenly come out to say the message "in your face". Profits they take but liabilities they push to the people.

Anyway for HDB flats within 20 yrs old, pricing will more or less be driven by the usual demand & supply and economic landscape (especially jobs).

It is more of the older HDB that will face more drastic price cuts, especially over 35 yrs. Already becoz of the new CPF limits for paying of flats older than 40 yrs or older than 60 yrs, many old HDB flats have been forced to lower their prices over the last couple years. Even those in central areas.

Banks have also copied some of CPF's limitations for loans of old properties. Hence buyers need to have more of the cash to buy such old properties.

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