Most People Feel HDB Resale Prices Are Too High, According To Answers.sg Poll
A poll by Answers.sg found that 90% of respondents agree that HDB resale prices are too high.
A disproportionate amount of the 2,300 respondents voted on HDB resale prices being “too high”, reflecting current sentiments over house prices.
Those who spoke to MS News also felt the pinch and noted that an average Singaporean is unlikely to be able to afford a home on their own.
80% of respondents say HDB resale prices are too high
Of 2,300 respondents, 90% believe that HDB resale prices are at least high.
Source: Answers.sg
80% believe they’re too high, while another 10% believe they’re high.
A further 5% of them consider HDB resale prices satisfactory, while the remaining 4% found them either low or too low.
Household incomes have had to increase significantly to afford a resale flat
In January this year, the Ministry of National Development (MND) published the household incomes of first-timer families who bought a resale HDB flat between 2018 and 2022.
The figures are startling — the median household income for first-timer families who bought a resale HDB fat in 2022 is S$7,500.
This means that in many cases, at least two members of the family have to be earning full-time salaries to be able to afford a resale flat.
“There has been upward momentum in HDB resale prices, reflecting a broad-based increase in public housing demand, MND said.
To moderate demand in the HDB resale market, the ministry introduced cooling measures in Dec 2021 and Sep 2022.
“The Government remains committed to keeping public housing inclusive, affordable, and accessible to Singaporeans,” MND added.
“We will continue to monitor the property market and are prepared to make further moves if needed to ensure a stable and sustainable property market.”
Unable to earn faster than price increases
An individual MS News spoke to believes prices have already risen faster than the amount an average Singaporean can earn on their own.
Speaking to MS News, 32-year-old advertising manager Jim Lim said, “The average income per annum for a Singaporean is S$58,000 before CPF deduction. That’s S$46,000 take-home.
From 2020 to 2022, an average Singaporean would have taken home S$92,000 in income provided they ate air and lived at a park bench in East Coast Park.
“The S$92,000 set aside from not eating or staying anywhere by said Singaporean would not even cover the increase in resale price,” he added, citing a Punggol three-room flat costing around S$365,000 in 2020.
Of course, the amount is far higher in 2023 — a three-room flat in Punggol can cost in excess of S$410,000 today, if you’re lucky.
“We aren’t talking about beating inflation with pay raises anymore. We are talking about being physically unable to earn faster than the price increases,” Mr Lim said.
Flats costing over S$1 million are “ridiculous”
Another respondent, Angeline Ong, 32, said the increases in prices for larger flats have also made them unaffordable in most locations, perhaps due to high demand.
She has been looking for a four-room flat in the past month, and with their budget, Canberra and Sengkang are the only ones that meet their criteria.
“I also think it’s really ridiculous to be reading news about resale flats selling for over one million dollars,” the 32-year-old added.
“If they can afford to pay over a million dollars for an HDB flat, perhaps they shouldn’t even be buying one.”
A record 54 HDB units were sold for at least S$1 million in August alone.
Record 54 HDB Units Sold For At Least S$1M In Aug, Resale Prices Continue Rising
Demand remains high regardless
But demand appears to remain high, according to media executive Jessie, 29.
She wanted to live closer to her parents in Bukit Panjang but found resale prices unaffordable.
“Even 30 to 40-year-old units were extremely out of range for us,” she noted.
After shopping around for two and a half months, she and her partner opted for a four-room flat in Canberra at S$600,000, which is around the HDB valuation.
People like Jessie can count their blessings, as flats in most locations cost far more than the amount she got her Canberra flat for.
For those who, for various reasons, prefer to buy a flat to live in immediately instead of waiting several years for a Build-To-Order flat, the cost of doing so can be steep.
This article is in collaboration with answers.sg, which lets readers vote in various types of polls. To find out more, get in touch at hello@answers.sg.
Featured image adapted from Jonathan Khoo on Unsplash.
