Monday, 19 December 2022

Are HDB Flats Affordable? (Dec 2022)


I read with interest what CW had to say on this topic:

Ho Ching: Buying an HDB flat akin to paying same rent without inflation in advance for decades

Then I remembered we had discussed it 10 years ago:

Are HDB Flats Affordable?

I'm labelling this post with (Dec 2022).

Let's see 10 years later, will we still be discussing on the same topic again!?

It goes to show in every generation, there will be a new batch of bei kambings coming to the fore.

In every transaction, there will be a buyer and a SELLER.

Bei kambings just look from the buying side. You know, the dog in the manger mentality - if they can't make money, others should not make either!

Youths, who have bigger engine capacity between the ears, will be looking from the selling side, "How do I join those who are selling their HDB flats for more than a million dollars!?"


  1. Sometime, I am wondering who are those unhappy with buying BTO with 99 lease scheme? Buyers will be dead by then!

    1. CW,

      2 groups of people - sheep and shepherd.

      First group would be those who really don't understand the concept of leasehold. This is not a financial literacy thing; its more an england comprehension thing.

      I would give chance. Either they not educated or were born with Honda cub engine capacity between the ears...

      The other group I don't know whether to pity or despise. They fully understand everything.

      Life has not been too kind to them, so they manipulate and stir shit amongst the first group above. By pretending to speak up for them, they suddenly become a "shepherd"!?

      A welcomed distraction from their hard and purposeless lives...

  2. Smol,


    Seller: cheap cheap!

    Buyer: wah lao ehh, pay until pants drop!


    1. Spur,

      This is where the snake oil appears and sell "win, win".

      Buyer buys from seller, buyer in turn sells to new bei kambing 10 years later at a good profit. Bei kambing resell at an even higher price to another laggard 10 years later.

      Everyone makes money! No one loses money!!!

      See? Property is "not" a zero-sum game...

      Don't laugh. People actually believed this bullshit.

      That's until big daddy stepped up to remind the little lambs that the property will revert to ZERO after 99 years...

      Lease decay never a problem; overpaying is!

  3. Other than being refresh of a 10 year old topic, it is also interesting to take stock of others investment progress after having 10 years of experience.

    1. AT_AT,

      I'm sure when HDB flats first crossed the $100K mark in the past, the discussion then would be the same as today - are HDB flats affordable!?

      10 to 20 years from now, no one would comment HDB flats above $1 million as that would be "pretty common" for resale flats in mature estates...

      Imagine Singapore being home to the greatest number of millionaires in the world then?

      Opps! That would not work... As Indonesia would have more rupiah "millionaires"!

      Yup, I've been blogging for 11 years now. Along the way, many of my generation have stopped blogging. They're replaced by new up and coming bloggers every year.

      It's very interesting. Some have moved to the commercial side - become business owners or joined the financial snake oil industry.

      Some have grown their blog to very lucrative side hustles. Some I respect as they're transparent and open - nothing wrong in making money! Some I would prefer to keep a distance as they're not satisfied with just milk and fleece...

      Talking about investment progress... I've been "hentak kaki" for the last 6 or more years :(

      Shame! (Game of Thrones)

      Shame! (Sound of ringing bell)



    2. Wish you all the best for next year. With your new flat, at least your net asset is growing :-)

      Some show net asset based on capital injection *face palm* to hide mark to market losses. The saving grace is having lots of cash to pump in. Some followers probably didn’t see that coming. Moral of the story: make sure have big war chest to play in casino. *wink wink*

    3. It's rate of inflation (of flat prices) versus effect of lease decay. Lol

      If one bought a very old flat at a very high price and this old flat doesn't get enbloc or sold for an even higher price, then... it's just too bad.

    4. AT_AT,


      Others bore their friends with travel photos; I'll bore everyone with blog posts about my flat!


      Investing is like ogling at women, the bigger the war chest, the better!

      Bei kambings can't see (or in denial) that to earn $200K in annual dividends, you have to work backwards to see how big a mountain you need to sustain it...

      Now try climbing up the mountain with $100K in capital with just passive dividends/interests!?

      To grow that $100K to $3 or 4 million to sustain that $200K annual dividends, if one looks under the hood, its usually:

      1) Made money from properties

      2) Day job high income to inject FRESH capital annually

      3) Know how to harvest REALISED capital gains from Earn More

      I left out Business Owners as they just need to IPO their startup companies can oredi!

    5. Rainbow girl,

      Excellent observation!

      Sometimes the pendulum swings from one extreme end to another...

      From ignoring lease decay completely, to getting overly petrified with lease decay.

      If we overpay for older flats, it has nothing to do with lease decay; it's like paying too high a premium for options/warrants.

      Options and warrants do expire worthless too ;)

      Buying an old HDB flat with 30 years remaining on its lease is no different from buying a new HDB BTO flat with 30-year leases!

      Its more about whether it's better to rent (you believe in deflation going forward), or better to lock-in the rentals for the next 30 years (you don't think inflation going away).

      And if the flat is not primarily for living, but for speculating like trading options/warrants, then welcome to the path of Earn More!


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