MYTH # 3: Rising prices of HDB flats will lead to wealth creation for Singaporeans.
TRUTH: It will have a negative wealth impact due to higher financial liabilities according to a NUS study done by Abeysinghe and Gu Jiaying
In a reply to question from a MP who asked if a cap should be imposed on rising HDB resale prices during a Parliamentary session in July, Senior Minister of State for National Development Grace Fu noted that HDB flats remained affordable to Singaporeans.
“‘HDB flat prices should be a reflection of Singaporean’s wealth and it is “not a bad idea” for prices to increase steadily, especially for those holding onto negative assets bought in the previous market peak in the mid 1990s.’”
The ruling party has never failed to remind Singaporeans that it has brought about high home ownership and rise in asset value under its rule.
During a speech given…
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