Property curbs increase prices of HDB flats. This the new property reality.
By Leong Sze Hian
The latest statistics which show that new private property purchases plunged 73 per cent last month, a 43-month low, are likely to mean something to the ordinary Singaporean.
One possibility is that the demand for HDB flats will go up, which can only mean an increase in the price of such homes.
It is no comfort that the BTO and resale prices are still at record highs.
When people can’t buy private property because of the new loan curbs, they may have no choice but to turn to HDB flats. Also, the new loan curbs do not apply to new Build-to-order (BTO) flats which are governed by HDB concessionary loans.
This is the new reality in Singapore: Put the squeeze on one side, the other side is going to be affected.