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lo_fi_ho t1_ivxsnn6 wrote

I thought the government pays for housing (HBD's)?

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wanmoar t1_ivxwz8d wrote

The government heavily subsidises HDB's but does not pay for them fully

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Eric1491625 t1_ivye2gf wrote

The government doesn't even subsidise a quarter of it for the average person at today's prices.

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Throwawaytehpengcup t1_ivy9fex wrote

Yea but the price of a Built-to-Order (BTO) is also based on the resale HDB market price.

Context: once you receive keys to your BTO flat, you have to fulfill a minimum accupancy duration (5 years) before you can sell them to the free market as a resale flat, where the price tend to be much higher even after a lot of government subsidies. Resale flats are quite expensive because you get to pick which HDB and location whereas BTO flats requires you to ballot (based on luck) + wait 7 years for it to be build.

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earthlymonarch OP t1_ivyb4ak wrote

I think the resale prices also follow the overall price trajectory in the housing market, because shortages in BTO units are pushing more people into the resale market. The August 2022 BTO exercise closed with 39,136 applications for the 4,993 units. I don't think the high prices - whether through BTO or resale - is going to be a short-term issue (as highlighted in the chart subtitle).

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