Printed in the Straits Times
I WELCOME the statement by National Development Minister Khaw Boon Wan that he is looking to reduce the cost of new HDB flats by 30 per cent, with those in non-mature estates to cost about four years of one's salary ("New HDB flats to become cheaper"; last Saturday). I agree with this benchmark of affordability.
Mr Khaw has a difficult task of ensuring that the new pricing regime does not adversely affect the values of the HDB flats that were bought at higher prices in recent years.
I suggest the following measures to achieve the laudable goals:
- The new flats should be priced at a 30 per cent discount to current market prices.
- The owners who bought new flats under this pricing regime will be required to pay a levy of 30 per cent to the HDB when they sell their units in future. In essence, the HDB is a 30 per cent co-owner of these flats.
- The HDB should set up a portal for the sale and purchase of this category of flats, to ensure the transacted prices reflect the actual market value and are not manipulated to show lower prices.
Tan Kin Lian
4 comments:
Mr Tan, a close friend of mine who is a private property owner, suggested that all
HDB owners be mandated to sell their flats within 6 months of acquiring a private property.
This will free up public housing for those who could not afford private and is a equitable move.
I personally, would even like to have the old policy of only selling back to HDB in place. Of course, many will object.
A flip flop policy like selling HDB flats back to the HDB would scare the daylights out of 2 categories of people -
Those who bought public flats at the top of market recently.
Jittery private developers of mass market developments who depend on HDB upgraders as purchasers' sources, as seen in the mass of property launches pushed out quickly this week.
Recent property cooling measures have potential to bring down crazy prices, and benefit one type of purchasers who missed the boat to buy higher end property like big bungalows, esp those who recently acquired high pay or made big money. Once again, the upgrader middle classes may be the losers.
If hdb owners are only allowed to sell back their property to hdb, many who can afford to buy pte property will not buy hdb again. This will push up pte property prices and may cause the rich and poor disparity become wider.
Economic inequality - a social issue in Singapore, UK and elsewhere:
http://us1.campaign-archive2.com/?u=40c80d32fb3b6520005cc05f9&id=0af756ad02&e=7ec365bff6
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