It is encouraging to note that the prices for HDB resale apartments continue to rise steadily (HDB resale prices rise for the 12th consecutive month, July 9th).
Interestingly, the price increase for resale apartments last month was broad and increased for both old and old properties as well as for all room types.
Instead of waiting for the government to announce new plots of land to build homes, buyers are realistic enough to decide now to buy the homes of their choice.
They know that new apartments are not exactly cheap in view of rising material and wage costs. Knowing that new home prices will ultimately affect the price of resale homes, they feel it is time to buy homes now rather than later.
The apartments in old settlements may be older, but the buildings in these settlements are well preserved. Thanks to the government’s policy of rejuvenating older settlements, public facilities such as passenger elevators and walkways, as well as areas such as parks, are constantly being modernized.
Authorities shouldn’t be too concerned about increases in resale prices as long as they reflect the real value of the homes and are not based on speculation.
About 80 percent of Singaporeans live in HDB apartments, and the majority are grateful to the government for their foresight in promoting home ownership.
Most HDB homeowners know that their home is their safety net in times of financial hardship or old age. You can downgrade to smaller apartments at any time and have some cash provided their HDB apartments have some value.
Authorities should be careful not to suppress the value of HDB homes so as not to anger Singaporeans who own HDB homes by trying to please a handful of new HDB home buyers.
The government should be aware that what it has done well so far is not undermining for the benefit of its citizens.
Harry Ong Heng Poh