HDB will be releasing information on build to order for Hougang in Jan 2010. Hopefully, 95% will be for first timers applicants again.
BTO for first timers are usually cheaper than resale prices... A look at the resale price index:
The previous peak occurred just before the 1998 Asian Economic Crisis. The current index is very near the previous peak, so it's giving me a dilemma if I should go for the purchase.
I did take note that the resale price index hike was probably due to buyers paying cash over valuation. I'm not very sure about BTO prices yet, but I'm with the impression that it is at a discount to valuation.
The details will be out on 5th Jan 2010, Tuesday.
As Mark Twain said, buy land, they are not making any more. In Singapore terms, buying land is currently out of my reach... But buying a living space the size of a pigeon hole is still within my means... Property plays usually entails leverage and much longer time horizon... It should be treated differently from stocks...
I am no expert, just voicing out my views. Personally, I think the context surrounding the peak in 96 and now are quite different.
ReplyDeleteAt that time, lesser control in profiting from HDB, economy was good, not so much new residents, etc. Now, the price increases in the midst of relative strict control on profiting, economy is supposedly very bad, there are tremendous growth in new residents. Also, different Ministers were in charge then and now.
Thus, I don't think even if there were to be a peak (local maximal) soon, which I don't think so, it would have nothing to do with the 96 peak.
back2nature, thanks for your insights! I have zero experience in this area :(
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