The delusion of 'investment grade' leasehold public housing in Singapore.

Discussion in 'Asia' started by Bic_Cherry, Sep 3, 2018.

  1. Bic_Cherry

    Bic_Cherry Active Member

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    The delusion of 'investment grade' leasehold public housing in Singapore.

    Penang Cow (Khaw Boon Wan) is a very cunning forked tongue salesman... Even dead cat bounce situation, he will hype up and repackage and sell to u as investment grade/ "appreciation potential" situation.

    What Penang Cow didn't say is that the price will logically, expectantly and continually trend downwards as the remaining leasehold status approaches zero. However, a small price blip (increase) will understandably occur during HIP2, when the toilets are scheduled to be renovated and thus look spanking new (any junk, scrap metal car with brand new tyres will sell for more $ than the exact same junk scrap metal car without).

    Basically a dead cat bounce situation or lipstick on a pig situation mis-represented as an "appreciation potential" situation ...

    IMHO, the only talent the Penang Cow actually has is as a forked tongue salesman ... He should better apply his forked tongue salesman talent in the private insurance business / used car sector/ to sell combs to bald men and refrigerators to the Eskimos. He isn't a statesman by any measure and the longer that this type of forked tongue con man reside in Parliament, I think the worse off it is for the entire Singapore.
     
    Last edited: Sep 3, 2018
  2. crank

    crank Well-Known Member

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    Mr Khaw pointed out that while a flat is an appreciating asset for as long as the economy continues to grow, at some stage it would begin to depreciate. "When will that turning point be? Year 80? Year 70? Year 90? I don't know," he said. "There are no market statistics for it."

    He's clueless, in that case. The age of a building has literally NOTHING to do with the value of a property in the First World. Actually thinking that it does, is a very Third World attitude.
     
    Last edited: Sep 3, 2018
  3. Bic_Cherry

    Bic_Cherry Active Member

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    Public housing in Singapore is sold on a 99year leasehold basis. Once the 99year leasehold period is up, the entire property reverts back to government possession. Thus, a 90year leasehold property with just 9years of remaining leasehold lease left can roughly be estimated to be worth lesser than 10% of its original sale price, if it remains habitable that is (utilities, elevators have to be still in service /working condition).

    So the value does fall with the progressive diminishing leasehold period.

    Except that the forked tongue senior politician is trying too hard by half, to convince the electorate otherwise.
     
    Last edited: Sep 3, 2018
  4. crank

    crank Well-Known Member

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    Well, that's not even property in the usual sense. It's more like a rental !
     
  5. Bic_Cherry

    Bic_Cherry Active Member

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    U won't believe how big this issue of 'ownership' vs 'rental' of public housing has become in recent months in Singapore.

    ======
    Factually and legally wrong to say HDB flat owners are merely renting the units: Lawrence Wong
    [​IMG]

    Minister of National Development Lawrence Wong said that the Government welcomes all feedback and views on public housing, especially as the topic is one that Singaporeans care deeply about.ST PHOTO: MARK CHEONG
    PUBLISHED
    1 HOUR AGO(04September 2018 ).

    Rachel Au-Yong
    Housing Correspondent

    SINGAPORE - It is "factually and legally wrong" to claim that Housing Board flat buyers do not own their flats and are merely renting them, said Minister of National Development Lawrence Wong.

    That is because all buyers of leasehold properties - whether public or private - enjoy ownership rights over their properties during the period of the lease.

    "They can also sell their properties and benefit from any upside, or rent it out if they choose to," he said at the Peak Forum for property industry professionals at HDB Hub on Tuesday (Sept 4).

    He reiterated the Government's view that the concept of leasehold property is neither unique to Singapore or public housing. Since 1967, all government land sale sites for private residential parcels have been sold on leases not more than 99 years.

    "We have limited space and we need to recycle land to create housing for future generations," he said.

    Otherwise, Singapore runs the risk of being like some other cities where, because it is difficult to recycle the land, there is a land shortage and housing becomes "very expensive and unaffordable".



    Mr Wong added that the Government welcomes all feedback and views on public housing, especially as the topic is one that Singaporeans care deeply about.

    New guides to ensure distinct identity, coherent design for HDB towns for decades to come[/paste:font]
    First HDB flats in new Tengah town unveiled with community farms and gardens[/paste:font]
    Price of 50-year-old HDB flat can appreciate over the next 10 years: Khaw Boon Wan[/paste:font]
    The twists and turns of HDB flat values[/paste:font]
    "But the debate must always be based on facts, not misinformation and half-truths," he said.

    He did not name any commentators but The Straits Times had published a commentary on Aug 14 by International Property Advisor chief executive Ku Swee Yong, who recommended "that we be honest with ourselves and recognise that we are merely lessees who rent the HDB flats for their terms".

    Ten days later, Prime Minister Lee Hsien Loong refuted the notion that the lease is "merely an extended rental" and not a sale.

    On Tuesday, Mr Wong said there are other aspects of housing policies where people may have differing views and this is fine. This includes how best to integrate rented and sold flats in HDB blocks, how much subsidies to give or how to ensure fiscal sustainability.

    “These are policy issues with difficult trade-offs to manage and we welcome diverse inputs so we can consider a diverse range (of solutions) to improve our housing policies,” he said.

    At the forum, Mr Wong launched a new design guide to ensure distinct town identities over the years to come. He also gave about 400 participants a look at the first housing district for the upcoming forest town of Tengah, where the first tranche of flats will be launched in November.

    https://www.straitstimes.com/singap...-hdb-flat-owners-are-merely-renting-the-units
     
    Last edited: Sep 3, 2018

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