I have posted a comment to suggest how the HDB prices can be made affordable to young people and first time buyers.
http://singstatistician.blogspot.com/2011/07/khaw-boon-wan-accidentally-proves-pap.html?showComment=1309739653046#c8633384813670441993
http://singstatistician.blogspot.com/2011/07/khaw-boon-wan-accidentally-proves-pap.html?showComment=1309739653046#c8633384813670441993
To find ways and means to solve the high HDB prices is something like: "Riding on the back of a Tiger and finding it hard to get off."
ReplyDeleteI do not think there is an easy available solution at the moment. To understand the root cause of the problem is first to appreciate the present situation of escalating HDB prices which is, to a certain extent connected with one of the ruling PAP's strategies of trying to prolong its political life. Do not forget that we have a population of at least 80% of them living in HDB flats.
Do bear in mind that the HDB prices are much determined by the factors of the policies of HDB. The valuation process of a HDB flat is often controlled and manipulated by the HDB/Government from my observation over the past decades.
The Minister should consider the approach that Tan Kin Lian had recommended some time back, namely:
ReplyDeletea) Set aside a new category of HDB flats that can be sold back to HDB based on the valuation price (and not on market price)
b) Price the land based on valuation, rather than open tender
These flats will be affordable. By offering this new source of flats, it will reduce the strong demand for the current HDB flats and help to moderate the escalation in price.
If young people know that they have a choice to buy an affordable HDB flat, even though there is limited scope for appreciation, they do not need to rush in and pay the astronomical prices now. This is actually a possible alternative if you consider it seriously.
Khaw Boon Wan prefers to use his own style of solving this problem. Worrying that if his method does not work, then it would be disastrous.
rex comments as follows,
ReplyDeleteone of the sad things in life is that the Boss cannot be made to look like a fool who is short of good ideas. So even if TKL suggestion re. the hdb dilemma, is a breakthrough solution, i can't see how PAP, the Proud and Arrogant Party would ever swallow humble pie to implement a suggestion from peasants.
The good suggestions has to be done in an EQ acceptable way to give space to the big heads up there to make them feel smart and not look stupid. This is common office politics, it is sad fact of life. The other solution the fast way is to sack the boss and just take over from there.
rex