{"id":10220,"date":"2017-05-19T05:55:39","date_gmt":"2017-05-18T21:55:39","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=10220"},"modified":"2022-07-01T04:06:58","modified_gmt":"2022-06-30T20:06:58","slug":"are-we-facing-the-end-of-affordable-hdbs","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/are-we-facing-the-end-of-affordable-hdbs\/","title":{"rendered":"Are we facing the end of affordable HDBs?"},"content":{"rendered":"
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\"Is<\/span><\/p>\n

(Credit<\/a>)<\/p>\n

Most of us live in or have lived in HDB flats, and it is apt to say that HDB flats are the pillars of Singapore. In fact, more than<\/span> 80% <\/span><\/a>of Singapore’s population live in HDB flats.<\/span><\/p>\n

Many of us may not know that the HDB was born out of the need to house Singaporeans who were mostly living in unhygienic slumps in the 1960s. At that time, only 9% of Singaporeans lived in public housing, and this was when HDB was set up to solve the problem of a housing crisis and provide affordable homes for our citizens.<\/p>\n

Over the years, HDB has\u00a0built\u00a0more HDB flats every year to ensure that they meet housing demands. As of 2015, there were a total of <\/span>937,086<\/span><\/a> dwelling units under HDB’s management. This includes sold flats and public rental flats. But as supply increases, prices haven’t been coming down.<\/span><\/p>\n

Looking at the resale price index, where 2009 is\u00a0at the base of 100, the latest figure as of Q42016 shows the<\/span> index<\/span><\/a> at 134.6.\u00a0<\/span><\/p>\n

The myth of \u201cexpensive\u201d HDB flats<\/b><\/h4>\n

While it is indeed shocking that public housing anywhere in the world can reach a whopping $1 million dollars, we need to consider that these are mostly anomalies. For one, a majority of the <\/span>million-dollar HDBs<\/span><\/a> are from two estates \u2013 the Pinnacle at Duxton, as well as the executive mansionettes at Bishan street 13. There are of course, other outliers, but these crazy resale figures make up less than 0.1% of the total HDB supply.<\/span><\/p>\n

The main reasons for these HDBs commanding higher than normal price are usually due to a few factors \u2013 strategic locations in mature towns, large size, as well as being renovated or having unblocked views.<\/p>\n

Beyond these outliers, our public housing continue to be rather affordable, helped by several measures from the government. These include:<\/p>\n

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