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25-12-2010, 11:38 AM
(25-12-2010, 10:16 AM)bullrunner Wrote: If HDB prices become affordable perhaps we have to beware there is unintended consequences as the current HDB policy of subsidising market pricing would start a downward trend of such. Can you imaging if suddenly resasle HDB falls by 10%.. the new flats would have to be priced 40k-50k below the exisiting supply wont it depressed the market further?
It depends on HDB. It can hold on the release of the flats.
Basically, unlike private developer, HDB can hold on to the flats indefinitely.
And unlike private developer, it can secure the release of land to build new flats anytime.
I think the last two years were a shock to them as they probably did not anticipate that their BTO scheme will fail so badly to contain the price appreciation.
Therefore, Lim Hng Kiang method is still the best to contain price
