Is HDB a good investment? Part 2

Posted on 28 February 2011

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  • Fiona

    It used to be the case, but personally, I do not think so. Rental yields are still quite low. In addition, there could be a possible over-supply of homes when the current housing boom ends, pushing down HDB prices. No quantitative figures, but look at the flurry of condo projects and lack of interest in BTO, signaling over-supply.

  • Tim

    But HDB is still the government’s housing, isn’t it?

  • sh

    @Fiona: There seems to be a backlog in BTO with plenty of couples still waiting to claim their flats, having paid up 3 years ago. At the moment the population increase seems to be going at a higher rate than housing capacity. By population, I mean PRs, foreign workers, contract expats and the like.

  • Fiona

    What if these expats/PRs/foreign workers leave?

    • Wilfred Ling

      Actually the same question should be ask on what happens if the Singapore citizen leaves? That is why it is important to do the necessary fact finding to understand the client’s long term goals. The products will have to be able to meet those long term goals.

  • Shihan

    @Fiona: If they leave where are we going to find the bangalas, and overpaid expats (brought in by their more overpaid expat friends)?

  • Fiona

    The whole housing market will simply collapse.