The escalation of HDB prices over the last two decades and especially since the mid-2000s is cause for alarm. High public housing prices affect not only those looking for affordable homes, but also the entire country.
First, for those who have already bought their flats, chances are that they have used, or are using, most of their CPF funds to service their housing loans. This means that most Singaporeans will have little or no retirement savings to live on.
The idea of being asset-rich but cash-poor will have grave consequences for Singaporeans who have retired or will retire in the not-too-distant future. Given that the population is ageing quickly, the matter is set to assume crisis proportions.
Second, current owners of HDB flats will be in financial danger if the housing market falters and prices take a steep and severe correction. It is irrational to think that current prices will increase indefinitely, or even maintained at current levels. Full story
