(Below are comments by ‘oxygen’ on my post on ‘asset enhancement’.)
LAWRENCE WONG EITHER SLAPPED HIS BOSS PUBLICLY or they are both thoroughly confused of asset enhancement politics or both. PRESENT TENSE’s (PM Lee’s) 2014 National Message has three theme of assertive promises.
LHL: For most of you, your HDB flat and CPF savings are key ways to fund your retirement. The HDB flat has allowed Singaporeans to build a home, and to grow a valuable nest egg for old age,….“Your flat is an asset which appreciates as Singapore prospers. My team is studying how to make it more convenient for retirees to get cash out of your flats.
(Like Lau Goh, PM Lee told Singaporeans that HDB flat prices will defy gravity. Since Lawrence Wong has said the value of HDB flats is $kosong at the end of its 99-year lease, someone may not be telling the truth.)
WHEN THE BOTTOM FELL OUT OF HDB RESALE MARKET, Sinkies who sunk their CPF savings into property – mistaken that the public housing market valuation provides the platform support of ever escalating residential property values – is going to see a DRAMATIC DOWNWARD SHIFT of gear in pricing/valuation of both public housing and private condo market TOGETHER.
There won’t be anymore upgraders from 5-room HDB or Executive HDB into the lower end of the condo market. The top end of the private residential market have long cracked, the mid-tier depending on the lower end condo prices to stay in support to sustain their own valuation – BUT THAT HAS CRACKED OR WILL CRACK when the lower end of the condo market disintegrates as well.
And what happens when the entire strata of property market valuation experienced a downward shift in gear? THEIR PROPERTY ASSETS AND CPF SAVINGS ALL VAPORIZE TOGETHER.
2020 GENERAL ELECTION SHOULD BE FUN – lot of angry HDB tenants and private condo buyers trapped with depreciating residential properties eating up their retirement savings as well.