HDB able to produce cost breakdown chart in 1981 but not now

[theDoors]

I bought my 4 room flat in 2004 for $127k. Now a new 4 room flat cost $260k. New HDB flat prices more than doubled in a span of 6 years. I think Mr Mah should provide some answers.

 

[aurvandil]

Thank you. This scan is priceless. Please post more of such scans if you have them.

 

[batman1]

to answer the thread title, this was because after 1981, the hdb changed its policy of setting the price of new flats. Instead of cost-plus, they allowed the market to determine the price, then give a reduction to first time buyers. It is this reduction that the hdb is calling a subsidy. So it became perceived price-minus.

This means that each year, the price will be higher than the last, even with the 'subsidy'.

That was the start of the phenomenal climb in prices and buyer's anguish and the rest was history.

if this time general election,singaporeans don't vote out the greedy and hypocritical miw,then they deserve to have their heads on the chopping board !!!period.
No point kao peh kao bu only after the miw win the election !!!

 

[longbow]

Very easy to calculate constuction cost. The BTO contracts awards are here:

http://en.wikipedia.org/wiki/Build-To-Order_(HDB)

After that minus what they are selling for and you can get a rough idea.

 

[longbow]

For example, Punggol Nautilus - $80.5M for 519 units - avg price per unit = $155K per unit construction cost. So the rest is land cost and profit. Very simple and straight forward.



Punggol Nautilus
S2C24A
168C, 168D
169A, 169B, 169C
170A, 170B, 170C Mar 2009
Mar 2013 Standard
Ferrolite
UD
Assure 3 413 (90 m²)

Selling price
106 (110 m²) $228,000 - $274,000
$305,000 - $357,000


Contract award price:

Sim Lian Co Pte Ltd
$80.50 million contract for 519 units

 

[Tiu Kwang Yew]

land is stateland is also public land, so there should be no cost becos the owner is HDB.
so the profit is 100% plus.....the interest another 80%....total profit is nearly 200%

KNN, the scums in white.

For example, Punggol Nautilus - $80.5M for 519 units - avg price per unit = $155K per unit construction cost. So the rest is land cost and profit. Very simple and straight forward.



Punggol Nautilus
S2C24A
168C, 168D
169A, 169B, 169C
170A, 170B, 170C Mar 2009
Mar 2013 Standard
Ferrolite
UD
Assure 3 413 (90 m²)

Selling price
106 (110 m²) $228,000 - $274,000
$305,000 - $357,000


Contract award price:

Sim Lian Co Pte Ltd
$80.50 million contract for 519 units

 

[iamtalkinglah]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_484474.html

NATIONAL Development Minister Mah Bow Tan on Saturday criticised an election strategy of opposition parties, saying they should focus on how they can best serve the people rather than to make him the focus of their campaign.

'A general election (GE) is not about me, an individual minister or an individual MP. It's really about the residents themselves.

'I offer myself up for election because I believe that I can do the best and the most for them.

The key reason is Mr Mah. His ministry oversees public housing, an issue they hope to exploit by attacking the affordability of HDB flats, whose prices have been rising. The minister acknowledged some people may be adversely affected by the housing policies. But he pointed out: 'There's no question that our policies are designed for the good of the people.

'While there may be certain parts of the policies that are not favourable, overall, I think these policies are for the well-being of the people and are good for the country.'

Fuck it, we are not stupid. HDB affordability is the key concern of every Singaporean. The govt best serve the people by giving us affordable HDB! I cannot see how it is set for the well-being of the people. Need him to enlighten us.

 

[Zombie]

land is stateland is also public land, so there should be no cost becos the owner is HDB.

land cost is actually opportunity cost...

 

[Sperminator]

Marlboro Tan have created so many people dissatisfied with his policies.

And inability to explain on the HIGH HDB pricing.

I can sense that 66% is changing down to 33%...

 

[longbow]

A lot of the $$$ also comes in the form of commercial land sold for town center shopping mall - like Bishan 8 and such.

Then there is the tenders for food courts, wet markets, HDB shops, HDB parking and of course public transport. Also once the estate is up and ready there are usually a few plots right in front of MRT that will be sold for pte condos. These too fetch a very good price.

 

[theDoors]

well done the doors,

you give veri good information to local sporns, young and old.

about the land cost----actually the land is a stateland which belongs to the public. PAP add in this land cost is totally ridiculous.

imagine one block got 200 families----then is about 3 to 5 million for a small pc of land.

HDB buy land from SLA?

Thank you. Can add my power?

 

[theDoors]

No-frills housing, please
http://www.channelnewsasia.com/stories/singaporelocalnews/view/407689/1/.html

Monday • February 9, 2009
Ansley Ng

When he first raised this in Parliament on Friday, Dr Lim gave the example of flat prices in the 1970s: $15,000 and $20,000 for a three-room and four-room flat respectively. A graduate with a starting salary of $1,000 could pay off his apartment with 15 to 25 months of his pay, he said.

Definition of affordability
25 months of a graduate's starting salary.
Can be repaid by a single income over a 20 years mortgage.

6 years ago, the HDB flat prices still adhered very closely to the above mention formula.

Say the median starting pay of a graduate is $3500.

The price of of a 3 room flat would be $87500.
The price of of a 4 room flat would be $116666.

Not too far off from my 4 room flat of $127k that I bought 6 years ago.

Based on 2.6% interest rate of HDB, and 20% down payment of $26,000.

Taking a loan of $104,000 from CPF, works out to be $490 deduction from the OA over 20 years.

Based on a $3500 salary using current contribution rates, the monthly contribution to OA account is $796.

There is a balance of $306.

The same government is still in power. How come in a span of 6 years there is such a drastic change in the social contract?

Now affordability is now define husband AND wife servicing a 30 years mortgage.

http://business.asiaone.com/print/Business/My+Money/Property/Story/A1Story20100113-191545.html

"Let me illustrate. A family with monthly household income of $3,000 who spends 30 per cent on housing can buy a flat of up to $250,000. This covers all the new 3-room flats in HDB's most recent BTO projects in Choa Chu Kang and Hougang in Jan 10. They also have a selection of the 4-room flats, where prices start at about $230,000. At $4,000 monthly income, a family can afford up to $333,000 without spending more than 30 per cent every month."

The social contract remain unchanged for almost 30 years. In the 2006 general election, after PM Lee received his strong mandate from his electorate, HDB silently took on a market based approach in pricing new flats

The way it is presented is still deceptive.

It used to be 1 income 20 years mortgage

2 income 30 years mortgage
Another way of looking at it would be 1 income 60 years

There is a nett increase of 40 years of mortgage being disguised by the fact that 2 person is servicing the mortgage at the same time.

Dr Lim is not a partisan member of the opposition trying to score political points with the electorate, he is merely reminding his colleague what the mission of HDB should be.

 

[Zombie]

2 income 30 years mortgage
Another way of looking at it would be 1 income 60 years

"2 income 30 years mortgage"

can never be

"1 income 60 years"

in this case, 1 + 1 is more than 2

 

[theDoors]

Definition of affordability
25 months of a graduate's starting salary.
Can be repaid by a single income over a 20 years mortgage.

6 years ago, the HDB flat prices still adhered very closely to the above mention formula.

Say the median starting pay of a graduate is $3500.

The price of of a 3 room flat would be $87500.
The price of of a 4 room flat would be $116666.

Not too far off from my 4 room flat of $127k that I bought 6 years ago.

Based on 2.6% interest rate of HDB, and 20% down payment of $26,000.

Taking a loan of $104,000 from CPF, works out to be $490 deduction from the OA over 20 years.

Based on a $3500 salary using current contribution rates, the monthly contribution to OA account is $796.

There is a balance of $306.

The same government is still in power. How come in a span of 6 years there is such a drastic change in the social contract?

Now affordability is now define husband AND wife servicing a 30 years mortgage.



The social contract remain unchanged for almost 30 years. In the 2006 general election, after PM Lee received his strong mandate from his electorate, HDB silently took on a market based approach in pricing new flats

The way it is presented is still deceptive.

It used to be 1 income 20 years mortgage

2 income 30 years mortgage
Another way of looking at it would be 1 income 60 years

There is a nett increase of 40 years of mortgage being disguised by the fact that 2 person is servicing the mortgage at the same time.

Dr Lim is not a partisan member of the opposition trying to score political points with the electorate, he is merely reminding his colleague what the mission of HDB should be.

"2 income 30 years mortgage"

can never be

"1 income 60 years"

in this case, 1 + 1 is more than 2

What would be a better way of putting it?

From requiring 20 years of income to service a mortgage to 60 years of income to service a mortgage?

 

[theDoors]

I think this statement is concise.

6 years ago a new HDB 4 room flat requires 20 years of income to pay off. Now a new HDB 4 room flat requires 60 years of income to pay off.

 

[Zombie]

What would be a better way of putting it?

i don't know...

looking at this again

Monday • February 9, 2009
Ansley Ng

When he first raised this in Parliament on Friday, Dr Lim gave the example of flat prices in the 1970s: $15,000 and $20,000 for a three-room and four-room flat respectively. A graduate with a starting salary of $1,000 could pay off his apartment with 15 to 25 months of his pay, he said.

in the 1970s:
starting salary = $1000
3-room = $15000 = 15X the salary
4-room = $20000 = 20X the salary

you bought 4-room at $127k
your starting salary should be $6350 to match

 

[streetsmart73]

The article stated " the early years where many owners were able to repay their loans within five to ten years "-compare it to now where MBT stated
30 years as the benchmark.
On this count alone, its enough to vote them out.

hi there


1. well done sinkieland.
2. it takes a mil-dollar salaried elite to hook sinkies up for life in loans and mortages for life. at the end of the day, having just a roof as some shelf.
3. five to ten years, fat chance man!
4. unless sinkies move back to smaller units or living with parents.
5. dream on!

 

[DrPanacea]

Why do people have to have homes that make them locked in debts for 30 years?

I guess that's the only way the Gobermentos could keep the serfs locked into providing service to the country for the next 30 years, and they could not be mobile.

Because the self serving morons need serfs to ceate wealth for them. We are in the feudal age.

 

[DrPanacea]

Definition of affordability
25 months of a graduate's starting salary.
Can be repaid by a single income over a 20 years mortgage.

6 years ago, the HDB flat prices still adhered very closely to the above mention formula.

Say the median starting pay of a graduate is $3500.

The price of of a 3 room flat would be $87500.
The price of of a 4 room flat would be $116666.

Not too far off from my 4 room flat of $127k that I bought 6 years ago.

Based on 2.6% interest rate of HDB, and 20% down payment of $26,000.

Taking a loan of $104,000 from CPF, works out to be $490 deduction from the OA over 20 years.

Based on a $3500 salary using current contribution rates, the monthly contribution to OA account is $796.

There is a balance of $306.

The same government is still in power. How come in a span of 6 years there is such a drastic change in the social contract?

Now affordability is now define husband AND wife servicing a 30 years mortgage.



The social contract remain unchanged for almost 30 years. In the 2006 general election, after PM Lee received his strong mandate from his electorate, HDB silently took on a market based approach in pricing new flats

The way it is presented is still deceptive.

It used to be 1 income 20 years mortgage

2 income 30 years mortgage
Another way of looking at it would be 1 income 60 years

There is a nett increase of 40 years of mortgage being disguised by the fact that 2 person is servicing the mortgage at the same time.

Dr Lim is not a partisan member of the opposition trying to score political points with the electorate, he is merely reminding his colleague what the mission of HDB should be.

Simply vote them out of the system and this problem would go away. When TT Durian was booted out of NKF dialysis came down. Same principle.

Don't believe the cost figures given by the corrupt late Teh Cheang Wan, then minister of the National Development. If you don't believe he was corrupt have a look at the CPIB website. I believe his son is still at large enjoying the millions his dad pilfered from the state.

http://app.cpib.gov.sg/cpib_new/user/default.aspx?pgID=237

 

[Highfalutin]

keyboard_hero
Jan 15, 2010 10:31
33 years ago(1977), my father bought a 4 room S flat for $18,000 to be repaid over 15 years on an income of a $1200 and moved in with wife and four children age 11 to 17 in tow. He died soon after and my mum managed to finish paying the mortgage with the children’s contribution. Don’t you dare disparage the PAP in front of her!

I am not good in mathematics. Will some kind soul tell me how the present prices of a new 4 room HDB home in the least desirable location will be paid by an average income present day family with 2 kids(most preferred but nothing concrete done to encourage having by the government) over 15 years? And with a reasonable quality of life(non Swiss standard)?

Impossible? What’s the solution? Buy a flat in Johor and work and vote for PAP in Singapore?