A “group” of PRs and new citizens offering $50K COV for resale flats
March 11th, 2010 | 
Author: Written by Our Correspondent
When grilled by fellow PAP MP Inderjit Singh last week in Parliament on the increasing number of PRs and new citizens contributing to escalating HDB flat prices, National Development Minister Mah Bow Tan who admitted not too long ago that he was “caught off guard” by the record high resale flat prices had only this to say:
“PRs make up only one in five resale flat buyers and have minimal impact on resale prices.”
Mr Mah can be forgiven for not knowing the reality on the ground since he doesn’t live in a HDB flat. Flyers from property agents offering obscenely high COVs for resale flats on the behalf of PRs and new citizens are becoming ubiquitous in the HDB heartland.
Last Saturday, we reported the case of a Taiwanese PR offering $50,000 COV for a resale flat. Now, we have a “group” of PRs and new citizens offering the same COV for flats in another estate:
[Source: Vote PAP out Facebook]
Netizen Jansen Lim wrote that such advertisements are found all over his block:
“This kinda of adverts are all over my block as well. It’s almost impossible for normal Singaporean like me to afford a resale flat. Leaving me with no choice but to ballot for BTO, which takes 5 bloody years to complete.”
Jeremy Lee concurred:
“Recently I asked agent how much the average COV for Clementi flats near MRT. He said $40,000. I asked any problem selling my flat at Bt Batok. He said no problem, demand is strong from foreigners. 
”
The prices of resale flats grew by 8.2 percent in 2009 with the median COVs doubling from $12,000 to $24,000 in the last quarter alone.
The sky-rocketing prices are caused largely by the failure of the PAP to plan well ahead and to anticipate potential problems along the way.
In 2003, Prime Minister Lee Hsien Loong announced his ambitious plan to increase Singapore’s population to 6.5 million people by 2030. All of sudden, the floodgates were flung open to foreigners from all over the world. However, the infrastructure, including public housing, is not beefed up to meet the increased demand from a rising population.
Recent launches of BTO flats are more than 5 to 10 times subscribed even in less popular areas like Choa Chua Kang, an indication of how serious the housing shortage has become.
Only slightly more than 11,000 new flats were built between the years 2006 – 2008 when there were over 90,000 PRs and 20,000 new citizens alone in 2008:
[Source: HDB Financial Report 2008/2009]
Below is a graph illustrating how the rise in the prices of resale flats coincides with the rise in the number of foreigners in Singapore between the years 2000 and 2008, courtesy of Kojakbt, the moderator of 3in1kopitiam:
Due to the ruling party’s liberal immigration policy, foreigners now made up 36 per cent of Singapore’s population, up from 14 per cent in 1990.
The prices of HDB flats are kept artificially high by building less flats than needed to meet the demand and increasing the population via immigration.
As a result, Singaporeans are the ones who suffer in the end as they will have to shoulder more and more financial burden to pay for these over-priced 99-year leasehold public housing.
Mr Mah appeared to be oblivious to the plight of Singaporeans. Despite evidence on the otherwise, he continues to insist that HDB flats are “affordable” to the majority of Singaporeans.
Since it is “not realistic” to expect Mr Mah to make public housing more affordable, perhaps Singaporeans should consider getting a new man for his job in the next general election.
Related articles:
>> Taiwanese PR offers $50k COV for resale flat
>> Mah Bow Tan: PRs have minimal impact on resale flat prices
>> No empirical evidence to suggest that public housing is affordable in Singapore
>> When will Singapore’s property bubble burst?
>> Why HDB is unable to reveal break down costs of new flats now
>> HDB to consider introducing rules to curb property speculation
>> HDB blames Singaporeans for not selecting flats when given the chance
>> Singaporeans worried about retirement after depleting CPF to pay for over-priced HDB flats
>> Mah Bow Tan acknowledged that rising HDB flat prices has sparked “fresh concerns”
>> PM Lee: Govt does not have control over prices of resale flats”
>> COVs of resale flats shooting through the roof
>> HDB resale price index hit record high in 2009
>> Singaporean wants PRs to live in rented flats instead of buying resale flats
>> Singaporeans wants PRs to be banned from selling HDB flats at a profit
>> Shanmugam: Singaporeans likely culprits for driving up HDB flat prices
>> Mah Bow Tan: HDB flats remain affordable
>> Means testing for PRs to buy resale flats
>> Immigration and public housing: should the govt or people plan ahead?
>> Grace Fu: hard to predict demand for housing
>> Indonesian PR bought 4-room flat at $653,000
>> Mah Bow Tan asks home buyers to be realistic
>> PAP MP blames young couples who cannot get a flat for not planning ahead
>> Home affordability: HDB versus the public
>> Demand vs supply: so many applicants, so few flats
>> Number of applicants exceed number of flats
>> HDB to increase supply of flats
>> Mah: don’t compare with prices in the past
>> ERA: 40 per cent of HDB flat buyers are PRs
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33 Responses to “A “group” of PRs and new citizens offering $50K COV for resale flats”
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Dear Netizens,
It is wise to take watever property agents say with pinch of salt. The agents just want to broker the deal to earn the money.
I wish I was a PR in a precint that has hit the racial quota. then I can offer $90k COV to fellow racial PRs
I would have a unique product nobody else has.
Dont make it look as if PRs are bad here. Who is selling these PRs the resale flats. Its you Singaporeans. When you get a chance to get as much COV, u are glad to cash in on it. And then you blame the PRs. Clearly, PRs dont want to pay a high COV but they have no choice. Losing 40000$ on COV still turns out to be better than renting in the long run. So, stop being greedy and dont sell your flats to PRs. But, wait, the well off Singaporeans dont care about the poor singaporeans, rite. Ya, thats rite.
Whine about your own government when you dont care about your own fellow citizens for a few thousand dollars. Its your greed thats driving the COV high. And again, those who whine would do the same if they had a chance.
Complain about Singapore Elders not getting a fair deal. Given a chance, u singaporeans will run to hire Filipino maids. Why, just to save a few hundred dollars.
Truth: U singaporeans are a bunch of materialistic, greedy people. Only when u get a raw deal or u r at the bottom of the pile, u whine n blame the govt. As long as u can afford cheap maids, cheap labor and sell ur houses for a high COV, everything is fine.
U guys deserve what u are getting.
I dont understand why the SG govt even bothers to give financial help and grants to the poorer Singaporeans. U had the infrastructure n the chance. If you are not good enough, migrate to China or Indonedia. Stop whining about high COVs. Singaporeans HDB owners are driving is high and they are to blame. PRs dont have to choice but to meet the demands of greedy SG landlords to secure their future in the long run. So stop feeling jealous of the well to do PRs.
If you dont act greedy and ask for COV, it wont go up. Better still, if u dont want PRs to take ur HDB flats, stop selling to PRs for a little money. PRs cant buy if Singaporeans dont sell. But then do well off SG Citizens care for the not so well off. I am sure NOT.
Blame ur fellow true blue singaporeans as much as u blame ur Govt and Foreigners. And , Laborers and Unskilled Labor dont buy ur HDBs.
i do my part by keeping my block clean and ripping these ads off whenever i see them.
The PRs have nothing to lose by buying our HDB flats. If the price goes up, they can take profit and go home and have a comfortable life. If the price goes down, or when they lose their jobs and cannot afford to service their loan, they can also pack up and go home, leaving behind bad debts.
‘PRs make up only one in five resale flat buyers and have minimal impact on resale prices.’
Mr mah,
why not u reduce your salary by one in five since it will have minimal impact on you?
Anyway, i don’t think anyone would believe u since there are so supporting evidence to support your claim.
HDBs are still “affordable”, but Mah is not. We cannot continue to afford him because he’s so talented and needs to be paid more and more.
It’ll be more “realistic” to find someone more “affordable” for the job
Great news! Time to consider selling my flat to the new citizens.
S$50 cash COV and based on the recent transacted price in my area, I am looking at a whooping S$200k profit once I sell.
Anyone has any good recommendation on some private projects that worth taking a look? I prefer to stay in the east.
The worst thing is all this while, our loong loong kia diam diam dunno what to say about this ridiculous housing inflation. WHERE IS THE PM?????
I’m not a supporter of HDB but the signs seem very dubious. Why would anyone put up a sign explicitly underlining PRs and New Citizens?
All of these advertiment flyers are scams according to people in the printing industry.
This is just one of the many ‘STANDARD’ format they have drafted for property agents and its being distributed all over Singapore LOL. Its to attract ill informed owners of these illutionised people having high COV which is non existance at all till the agents advertised for the owner who got ‘HOOK’ LOL.
This shit Mah has to go! Vote him out in the next election.
I think its the real estate agent we have to control.
u sold or buy on behalf of a foreigner? more tax.
Wat lah eh….
Forgive that man lah… He is only train to do presentation. His job is to do sales pitch man! They put “Capable” men in various ministry not to tell you there is a problem ok.
They are there to do sales pitch for the party they serve. Have you ever see a sales man selling say photocopier sell the negative points in his copier? Ofcourse he highlight the good point and mask the negative ones lah.
That is what this man in the job is made to do what. And they are paid high salary and given the post year after year because they do a good job which is pitching. Who wants a lousy salesman selling their product right?
If they recruit any tom dick and harry, then you or me can also do that job! So where got elite status.
Dont complain lah… its like this one lah…!
we are not seeing rental flats building any time soon.
Here’s another one found in ass loong’s constituency:
http://i43.tinypic.com/2m5cbkk.jpg
Kaoz… You believe everything you read? Bet if you call saying you have a ready flat, they’ll cook up some excuses saying their buyers already bought a flat already. This is what’s called a HOOK in marketing and advertising. Just like advertisments on TV, take it with a liberal pinch of salt.
Don’t blame them!
Blame the people who made such policies as FT etc that give these PRs OUR LIVELIHOOD and now,OUR HDBs!
very “CLEVER” indeed???!!!!!!
i suppose Hitman is a PR?
well i agreed that if the seller not greedy the value will not be that high but again, no one buy no one can sell it takes both hands to clap.
the SG took high cash from PR. SG Sell and cannot take all cash proceed (max to keep 25K).
Seller & buyer pay agent fees, stamp fees, misc fees etc.. , HDB sit back relax to collect Money. Swee.
This ad is the oldest trick in the book of property agents!!!
They use the hype that PRs and new citizens pay lots of COV to lure owners into selling their flats. It is more likely that the agent does not have any PR/new citizen buyers at all and needs flats to get buyers interested.
@
All of these advertiment flyers are scams according to people in the printing industry.
This is just one of the many ‘STANDARD’ format they have drafted for property agents and its being distributed all over Singapore LOL. Its to attract ill informed owners of these illutionised people having high COV which is non existance at all till the agents advertised for the owner who got ‘HOOK’ LOL.
>>>>> yayaya
these are what they call ab flyers to hook stupid seller.. when their turn to buy then they complain why so Ex, so High..
then go to mp say cannot afford to buy.. basket when they pocket the money did they say money so much?
HDB may all BTO applicant to pay $10 admin fees.
10,000 applicant to ballant = 10 X 10,000.
knowing demand is high, cant they just do 1st come 1st serve?
they should allow them to book online on the unit instead of ballot. $10 to one pax is not much, but 10,000 of $10 is how much..
then still have cheek to say those who got the unit gave up the location. why cant they jus do as like GV online movie ticketing system. if viewer really like the place they dun even mind low floor, why waste people time to go ballot? and tell you orh you are out of the Q. waste 3 mths take a risk of higher resale value. whose fault?
i am not a PR. i studied in Singapore for Phd and now i work abroad. i like Singapore but all this anti-foreginer stuff sucks man…u guys are killing my respect for singapore…i want to go back in future but i am not sure now ….
We should take those advertisements with a pitch of salt. These agents are trying to lure us to hire his service, earn our $$$! My parents and I have been getting such advertisements since 10 years back.
Hey hitman, stay where you are & please don’t come back to Singapore. We got enough “foreign talents” here already.
oh yah, you spelt anti-foreigner wrong leh!! (Sorry for my Singlish, ok?)
CheaperFasterBetter
actually, its well known that when people type fast, often mistype particularly interchange of characters…again, spelling is not an issue here…
and of coz, i will come to sg not bcus i like singaporeans but bcus i like singapore…and ya i do not need the govt’s assistance for every little thing…i can build a life for myself inspite of u and ur govt…
to CheaperFasterBetter
i think singapore is quite crowded already. if u r a loser, please migrate to china or indonesia so i can live in peace in singapore. u think u r the only person who can be rude. i am sick n tired of u guys blaming everything on foreigners who jut want a good life. and unlike u, they are working for it and not begging their governments to give housing, food n education.
most PRs make a life inspite of everything unlike u guys who were born with everything, and yet need everything from the govt.
@ hitman
hmm… you dun like Singaporeans but like Singapore?
well, that certainly is a strange comment you fcking foreigner since Singaporeans are what make Singapore Singapore.
“i can build a life for myself inspite of u and ur govt”
Well then, why come here? You can build a life for yourself where you are you little arrogant prick. Face it, you’re nothing without us. NOTHING.
so go back to the slums where you come from and build your life there. If you’re truly ‘talented’, where you choose to build your life shouldn’t matter now, does it?
pathetic hypocrite.
U still have to give priority to Citizens. They are the ones voting. PRs have to wait. PRs cannot expect to get a HDB flat after one to two years of getting PR. The citizens have contributed for a long time to building this nation and for some it has been generations of contributions by their forefathers too. Given the current situation the priority still has to go to the citizens. PAP’s loyalty is to the citizens. If PAP cannot even take care of their own people by providing them with a basic necessity as a shelter, I don’t think they deserve to be in power.
To all the foreigners commenting on the block,
1) We complain and we fret and the government knows that it is the most we can do.
2) We wouldnt complain or fret if the government hadnt place prs and foreigners with such high importance. So much so that foreigners share almost the same benefits as citizens.
-eg education subsidy, taxes structure
3) We complain because currently our ministers are paid so much more than many people in the world including barack obama. We pay not because we have a choice. At least give us a better service since we have to pay you any way.
4) Yes the property pricing is part of demand and supply reaction. But i believe the underlying reason of citizens unhappiness over the distant and lack of empathy current governance and unfair dominance.
5) We complain because suddenly we feel foreign in our own country. Imagine having trouble communicating your order in a fast food restaurant??
I thought everyone’s suppose to be able to speak english in Singapore.
6)We complain because if we rally with more than 5 people; or speak out against the government; or write a letter of petition, we’ld be either dismiss, entertained for a while (esp before election) or arrested(worse).
so foreigners please, immerse in our culture properly. enjoy our food and feel helpless esp in the governance of the country ie (elections: walkover, no contest, what to do right oppositions not strong enough)
at least do this before you start commenting on us.
BigEyes.
U r truly frustrated with life. Are u a Loser. Evident from the language. Good to know that people in developed countries can have slum like mentality. Calling me names wont change the reality. Yes, I find Singaporeans materialistic and I dont like them much. But I do like the country. And I think most people know this well.
The sad thing is for all ur anger, u cant do anything about it except whine on forums. U people have made these forums a place to wrongfully vent ur frustrations on foreigners. Keep it up.
All these adverts are gimmicks by property agents. No PR or citizen will ever go on advertising his/her financial capacity like this. Even my block has lot of adverts like this. Some of them are so funny. They say “We are urgently looking for a unit in this block, able to pay 50k-60k above valuation. Ready to wait for 6 months”. Now, what kind of a logic is that. How can someone who is urgently looking for a unit wait for 6 months? Serious buyers whether PRs or citizens never do this. Its all the greedy property agents who do this just to raise the expectations of owners which ultimately raises the expected COV and a few months down the line the base valuation.
Greedy agents just want to create a hype about housing demand just so that they can earn obscene amounts in commissions.
Yah true, do not bother with all these adverts, they are basically gimmicks by agents trying to get listings and attract people who have the intention to sell their HDB to call them so that they can have more listings to sell and show to their buyers.
After an owner calls them, these agents will then push these COV down by complaining their unit condition. In fact, a lot of agents do not have customers who is willing to pay 50K COV. Probably only a small portion exists.