Quote:
Originally Posted by Unregistered
COE seems to be holding high for a long time. I am wondering is it because we have the Pioneer generation and Baby boomers who have benefited from the large proceeds from the sale of properties? Now that they are retired, they would have excess cash to buy cars which they couldn't enjoy last time. Does anyone have friends in that age group and is this phenomena generally true?
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This is true. Last time the older generation bought 5 room
HDB flat for less than $100k. Now they retire, they can sell their flat for $700k easily and buy a studio
HDB flat for $70k. They can make profits of $500k or more easily. So they can buy a brand new car for $100k paid in cash and still have money for their retirement.
The younger generations also benefitted by flipping their BTO flat. Ten years ago, they can buy a 4 room flat for less than $200k. Today they can sell their flat at $500k and then buy another cheap BTO flat. They use their cash profits to buy brand new cars. Our cheap BTO flats are fueling demand for new cars as many people flip their first BTO flats, make big profits and then buy another cheap BTO flat.