Friday, January 29, 2010

Stabilize the price of new HDB flats

I suggest that the Government should set the prices of new HDB flats based on a multiple of the average earnings, rather than on the prices of resale flats. The prices for new flats could serve as a benchmark for the prices of resale flats, rather than the other way round.

If the HDB publishes the prices of new flats and is ready to build more flats to meet demand, it would help to create a stable market for the new and resale flats. This would be better for the economy and for the people who need a place to live in.

A person's home should not be subject to speculation or for asset enhancement. The prices of the home should be kept at an affordable level, relative to the average earnings.
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3 comments:

Anonymous said...

Do not expect HDB to drastically reduce HDB selling prices for the following reasons:-

1 higher selling price means more asset for you, achieving Asset Enhancement scheme,

2 who is the biggest land owner in Singapore who acquires land from private at 1973 price(previouly). HDB buys land from SLA at market price,

3 so much money in your CPF, might as well suck some money from your account

January 29, 2010 1:27 PM
Anonymous said...

Yes, agree with Anon 1:27PM that govt will not really lower HDB prices, at most make it stay more or less the same for the next 2 years.

Reason is becoz high resale HDB prices drive the larger mass to mid private property market. It also determines how much profit the govt can make selling land to private developers. Not to mention higher property taxes, rentals of govt properties and stamp duties.

In other words, high HDB prices translates to higher GDP growth, which means bigger salaries and bonuses for ministers and staff of HDB, MND, JTC, SLA etc.

At most, the elites will engineer a 2% or 3% drop in resale prices over 2 quarters, to prepare the ground for General Elections.

January 29, 2010 2:48 PM
Anonymous said...

People who have paid high price for their HDB flats will have to work hard (for up to 30 years) to pay off their housing installments. Government should be happy to see this "by-product" of high HDB prices since they always stress that people must work hard.

By-the-way, working hard does not mean higher producitivity. It just mean that people have to put in long working hours and less time for family and other social life. This may lead to other "by-procuts" e.g. family problems, kids problems, social problems etc.

CCL

January 29, 2010 3:12 PM

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