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Problematic if too many HDB owners sell at the same time

I refer to the report “HDB flats a good nest egg for retirement, says Lawrence Wong” (April 13), regarding Housing and Development Board (HDB) flats as a “good store” of value.

I refer to the report “HDB flats a good nest egg for retirement, says Lawrence Wong” (April 13), regarding Housing and Development Board (HDB) flats as a “good store” of value.

As a static scenario and single case in point, the minister’s view makes sense. The situation he outlined, however, may not pan out if a significant portion of HDB dwellers right-size their flat and cash out around the same time.

This would be plausible as the life cycle of a large demographic converges. If sellers far outnumber buyers, prices could adjust downwards to an extent that diminishes this store of value.

To test the robustness of the case cited, it would serve the public well to stress-test the dynamic scenarios of many sellers cashing out as the proportion of the ageing population increases.

It would be good governance and forward-looking to do this ahead of time. It would be reassuring if this has already been done.

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