What is HDB? Singapore’s Housing and Development Board (HDB) is a pivotal institution in the city-state’s journey towards modern urban living. Established more than 60 years ago, HDB has played a crucial role in transforming Singapore’s housing landscape. We have evolved from a nation grappling with inadequate living conditions into an efficient, high-quality public housing model. Other than affordable homes, it aims to foster vibrant communities and promote a high standard of living.

In the most recent announcement of cooling measures the LTV of resale HDB loans is reduced from 80% to 75%. What does this mean? In very layman’s terms, it just means for a 1 million dollar value of HDB property valuation; one can loan up to 750,000 SGD instead of 800,000 SGD. The recent news of a record price of 1.77 million on a single HDB home, means that the LTV will be reduced by 5% should resale buyers continue the same purchasing trend.

It is quite clear that the cooling measure is to ensure the resale HDB price is at sustainable rates. In my own opinion, the gov has all the statistics. The new prices of HDB to say, million-dollar HDB are rare. (i.e. location, HDB size, layouts, rarity, duplex) is still dependent on multiple factors. Not many can afford to pay top dollar for a resale leasehold property. I’m not an agent nor am I in public service. I strongly believe that there are rationable explanations behind every decision (Be it a good or bad one) and in this aspect, the focus of this issue is really about a few points.

1. Demand for HDB. Increasing supply so that demand will go back to normal.
2. It is highly likely given our gov focus on statistical approaches many times (Not saying all the time) This 5% is probably the way they manage the resale affordability (Based on the median House Pricing and resale pricing) If this cooling measure is insufficient, I don’t think they will stop at just 5% until it slows down. To put it simply, there’s no crisis and no bubble. Our home assets remain to be our assets.
3. Young homeowners assistance (i.e. first-time home-buyers). Standard, Plus, Prime new HDB changes. Providing the incentives to stay at CCR, RCR or OCR depending on one’s choice. The new incentives also help low to mid-income households to own homes with benefits, subsidies and incentives islandwide.

To be honest, this strategy seems to be a rejuvenation of places to own in small Singapore as well and every school is a good school strategy. All these policies in my view are linked to one another for a more inclusive society. Just to see the entire big picture – The execution needs some finesse. Singapore Government is the basis, once they have declared, they will do all to execute it. The issue is just a matter of when that will be done.

How is that going to affect private housing going forward? I’m not too sure but I’m kind of swayed to the fact that it will slow down that price hike in housing. Being land scarce, it is hard to believe that prices will drop in the near term. My definition of the near term is 10 years just because the properties, living spaces, and amenities take years to develop and create a natural habitat for the township.

For some sense within me, there will be more generation changes. More people will hold on to their HDB. Less property flipping will happen and like ever before, only the rich get richer assuming they get the right properties.

The Housing Board is a testament to addressing housing challenges with foresight and ingenuity. By constantly pushing the envelope in housing design and community development, HDB not only meets the needs of today’s residents but also paves the way for a better, more inclusive future.

Conclusion

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These pictures were taken by AI.