My HDB 4-room flat valuation appreciated 10% in 6 months!

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Posted by: willieregister - Asiaone forum

http://forums.asiaone.c om/showthread.php?t=32444&page=2

I bought my resale 4-room flat at Geylang East Central at $385k (valuation) + $42k COV, in March this year. I remember drawing the cash from my bank… the feeling is shiok at the bank counter and painful at the HDB payment counter. Total value for flat was $425k.

It’s barely 6 months, and I have pamplets in my letterbox citing that they are willing to pay $70k more for my unit.

And it seems that the valuation of my flat suddenly jump from $385k to about $420k. 10% increase! My goodness!

In total, on paper, my flat is worth about $480-$500k now – nearly 15-20% in 6 mths!

if this is not a bubble, tell me what is it?

My pay increment is only 2.75% in 12 mths.

Going by this rate, no matter how the government is curbing speculation, it’s still the market forces at work here. Let’s say govt impose a levy for COV, the middle income family cannot afford it then… but then again, the affulent families will come in. Then we will see those ultra rich families from China swopping in to purchase flats @ $700k for a 4 room resale flat at before 2011. What nexts? $1 million for 4-rm flat before 2020 (where LTA’s master plan for transport had already kicked over then).

I remember when I was 16 years old, my pay as a waiter was $1050. HDB price for a 3- room flat was about $80k.

Fast forward 17 years (I’m 33 now), HDB price for a 3-room is about $250-300k. But the pay for a waiter is still around the same price!

I believe as FT comes in and economical forces pressure onwards, in year 2020, the pay for a waiter will still be around $1000. Why? As neighbouring countries and China work permits become more expensive, we will turn to other countries like Africa, South Amercia, etc.. where there will have cheaper labour. This is good for what PM Lee says: we need them to build infrastrutures and do jobs that Singaporeans don’t want to do. True. But on the filp side of the coin, the pay of blue collar workers are been capped. What an irony!