Re: Sell New HDB flats at cost instead of asking citizens to sell flats for retiremen
This is not a theory. I used to tender for HDB business and the bids for all tenderers are open (there is a notice board in HDB for all this info). So all those that tendered can see who won and their bids. If I were the lowest bidder and did not get awarded, i would raise a bloody stink.
HDB selects the lowest bid which is why a few years back we had contructors that went bankrupt because they underbidded the project. Many contractors hope to use HDB as launching board for their business. They hope that by doing an HDB project they get the cred with all the Gov stat board and that might mean more business down the road - a new community center a school.
So all HDB has to do is set the specs (including financial strength of company) and then choose the lowest price.
Furthermore if premise is that HDB is trying to max profits then why choose a more expensive contractor? If they are awarding projects to GLCs then we can understand why but these are your local construction companies.
To be fair, the Singapore Gov is usually very very transparent about their transactions.
I think the material inputs have increase tremendously over 25 years. I think just building materials alone have gone up many folds in pricing. Just look at major material for HDB flats, sand, granite, iron bars, copper wiring - China's rise has impacted world prices.
Also flats of today have much better specs, better QC, added requirements like bomb shelter, lifts on every floor, better fixtures like sitting toilet vs hole on the floor. Old school contractors will tell you about using seasand (very cheap vs river sand) for the concrete and using more sand vs cement. Result is rusting rebar, spalling etc etc.
Anyway I believe in fair market value. And this whole idea of HDB paying more than market is nonsense
Contrary to what many think, there is little of this "in bed with the HDB" type of incidences. Most of the HDB officers are straight lace matter of fact people. The only potential advantage is if you are selling new service. HDB may then ask you to help write the tender contract. But award still goes to lowest bidder in 99% of the cases. Must not forget that HDB flats are cookie cutter in design so pricing because the game. Hard for people to rig the process because it is all so low tech.
Remember that we went from a 3rd world to first world nation over that time. I know for a fact that just a scant 10 years ago during prop slump construction cost for a house was S$120/sf (building house from ground up without fixtures. Today to make the same house would cost you closer to $250 psf without fixtures.
The problem with your theory is that the tenders show only the winning bid. It does not mean it was the lowest bid. The HDB does not disclose the price of ALL the tenders. HDB winning tenders get shuffled among a few large contractors. These players have been in bed with HDB for many years, and in fact, HDB does not always pick the lowest tender. Are we to believe that a flat that sold for $50K 25 years ago now cost $150K to build, given that the 2 major inputs like labour and materials have not changed that significantly during that time, and also given their established and supposedly more efficient economies of scale? A construction worker paid $600 per month 25years ago is not earning $2000 now. He is earning maybe $200 more. The contractors are still getting them from low cost countries. Material costs have also not increased that much due to PRC products and other factors.
Lets say we have a disagreement on this. I have advocated in other post that the smart thing to do is cash out now if you can and move to JB and operate from a low cost country while earning S'pore wages. Play the game the FTs are playing.
