Wednesday, September 30, 2009

Protect the interest of first time home buyers

Read this letter in the Straits Times Forum. I agree with the views expressed by many young people, that HDB flats should be sold at controlled, affordable prices, and not be subject to speculation in the market. Here is another example of the bad "free market".
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4 comments:

Anonymous said...

Precisely, the Government has failed to protect the interest of Singaporeans buying a HDB flat first time from HDB directly or the open market.

It is unnecessary to give rebates upon rebates to Singaporean buyers and at the same time allowing the prices of HDB flats to escalate sky-high in prices. The genuine buyers who wanted to buy for setting up homes have inevitably suffered by the greed of many who profited the very moment they signed the ownership of an inflated abode.

To make a few richer at the expense of many poorer is a very wrong move. I see oppression in the making and it is so real in this tiny red dot.

September 30, 2009 10:05 AM
Sim Wei Jian said...

SIBOR is at its lowest since April 2004. With the excess liquidity in many middle-income CPFOA, and the low interest rates, it is no wonder the prices are jacked up so high.

Although construction in Singapore isn't really determined by the free market, it's mostly unilateral decisions from HDB, I am uncomfortable with the idea of fixing prices. It will not bring down resale prices of HDB and it will encourage more Singaporeans to take part in real estate speculations because the price difference between a first home and a resale is huge! Price fixing will usually result in lower production in a free competed item, which does not apply to HDB flats. However, it will definitely form a "black market". First-time buyers may buy the flat under their name and unofficially sell it to someone else at resale price and more people will take the risk when the differences are like half a million. They can rent somewhere else in the meantime or even stay with their parents if they never intended to move out.

I feel that increasing interest rates at CPF and limiting the amount of CPF money available for HDB purchase may curb this problem as it rewards the savers and punishes the speculators, especially the highly leveraged ones.

October 01, 2009 12:51 AM
Anonymous said...

Yes. It is very important to have affordable first home for the young starter. HDB can "tax" the secondary market for more profit

October 01, 2009 2:07 PM
Anonymous said...

Looking at some BTO like Punggol Vista, if my memory is correct, first release the prices was like 230 - 250k for 4 rooms. Subsequent release of unsold flats, the prices become +/- 300k. I could be wrong, but doubt so.

So why did the prices from HDB goes up like that? The cost of building the flat goes up or that HDB want more bonuses and sell higher price since property prices all goes up. Are they profit or non profit organisation?

October 01, 2009 7:05 PM

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