Monday, May 10, 2010

Pricing of HDB flats

Read this article in The Online Citizen.

My comments
I prefer to give an option to the public to buy the HDB flats at cost plus or at market price (less subsidy). Both types are subject to their conditions. This is similar to executive condo (EC) flats that are subject to conditions which are different from private condos.

The option to buy HDB flat at cost plus may suit some young people who looks at the flat as a home, rather than as an investment. They want to pay a lower price to keep down the cost of living.


J said...

I think there should be an option for everyone to rent as well. If you take a loan based on what you think you can earn in the next 30 years and something unexpected comes up within that time, you don't want your flat repossessed. If the option of renting is available to foreigners coming to Singapore for a short term, such options should also be open to Singaporeans as well. Housing is one area where locals face discrimination against foreigners.

The HDB should sell flats at prices just enough to cover their operating costs. (Please bring down the salaries of our bloated and overpaid government as well.) I have seen a comment on another blog about HDB prices, and the blogger commented that it is the people who are subsidizing the HDB and the government. I fully agree.

Anonymous said...

The government is well versed in cost benefit analysis.

Start linking VOTES to AFFORDABLE HDB prices and you will have their undivided attention.

Anything else,
- e.g. Logic, debate, letters to Straits Times and etc.
- it's just "Blowing in the wind"
- the song by Bob Dylan

Do your brains a favour. Everytime you
a) read the Straits Times
b) listen to Channel News Asia
c) watch a parliamentary debate
d) talk to an MP about a problem
e) recite the National Pledge
Play the song "Blowing in the Wind" softly in the background of your mind.

You will be a lot happier knowing that nothing is going to change. Rather than getting all uptight and upset thinking that it actually makes a difference.

Anonymous said...

Best solution to the problem:
Build more affordable 2Bed Rooms for future HDB as families start to shrink in view of aging population.
Micky Mouse Units/Flats in private developments are being snapped for a reason.
Mindset change is needed as the population boom and with land scarse Singapore.
Many are asset Rich bit cash poor why? pride to live Bigger HDB Pigeon holes!

Anonymous said...

reference J's post, May 10, 2010 7:26 PM.

The scenario he hi-lites seems to be as follows:

<----> HDB resale flat market price
! Govt. "subsidises"
! the market price
<----> selling price, new HDB flat
! Public subsidy to cost
! of new HDB flat
<----> building cost, NEW HDB flat

I'm not saying this is true. But pending facts to contrary, I'm just wondering if it's a possible scenario?

J said...

Dear Anon 9.57,

Precisely! That's what some articles at TOC have been talking about. It did not escape us that the government is not willing to tell us the cost of new HDB flats. Temasek Review once estimated each flat to be about $100k, but we can never be sure. So the "subsidy" is really the people of Singapore subsidizing the salaries of our overpaid ministers.

Another thing about artificially high prices of HDB flats is that it makes the next generation pay to the previous generation. The effect is similar to a country incurring debt that the next generation has to pay for.

J said...

Dear Anon 9.57,

What you said must be true. Goh Meng Seng quotes a few words from Mah Bow Tan.

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