Letter from Ng Kok Lim: HDB benchmark of affordability not reasonable

[temasekreview]

I refer to the HDB’s letter “Within a family’s reach” to the Straits Times dated 12 Sept 2009.

The HDB claims that one of its key responsibilities is to sustain flat values over the long term. The first of HDB’s four mission statements is to “provide affordable homes of quality and value”.

There is nothing in that statement that says that it is HDB’s responsibilty to sustain flat values over the long term. In fact, none of the four mission statements or even the vision statement remotely suggests that it is the HDB’s duty to sustain flat prices over the long term. So where did HDB get its mission of sustaining flat prices over the long term?

Next, sustaining flat prices over the long term is different from letting it rise faster than salary increases because clearly, salary increases hasn’t been keeping up with increases in flat prices.

The notion of generous housing subsidies is unconvincing. In the span of months, HDB prices shot up by $100,000 easily across the island. Can the $30,000 HDB subsidy make up for $100,000 increase in flat prices?

Read rest of article here:

http://temasekreview.com/2009/09/21...bs-affordability-benchmark-is-not-reasonable/

 

[singveld]

it is sad that HDB gone to this path, they are trying to save those people who borrow a lot of money from the bank so to make a killing after selling it. so they manipulate the price of the flats. also the GDP look better.

I refer to the HDB’s letter “Within a family’s reach” to the Straits Times dated 12 Sept 2009.

The HDB claims that one of its key responsibilities is to sustain flat values over the long term. The first of HDB’s four mission statements is to “provide affordable homes of quality and value”.

There is nothing in that statement that says that it is HDB’s responsibilty to sustain flat values over the long term. In fact, none of the four mission statements or even the vision statement remotely suggests that it is the HDB’s duty to sustain flat prices over the long term. So where did HDB get its mission of sustaining flat prices over the long term?

Next, sustaining flat prices over the long term is different from letting it rise faster than salary increases because clearly, salary increases hasn’t been keeping up with increases in flat prices.

The notion of generous housing subsidies is unconvincing. In the span of months, HDB prices shot up by $100,000 easily across the island. Can the $30,000 HDB subsidy make up for $100,000 increase in flat prices?

Read rest of article here:

http://temasekreview.com/2009/09/21...bs-affordability-benchmark-is-not-reasonable/

 

[hockbeng]

More opposition = Lower prices!

No ponint writing more and more letters.
They wont listen.

Hit where it hurts. 2011 is our last chance.

 

[Ramseth]

The issue of HDB flat pricing is a very tricky one. Many Singaporeans and PRs already own HDB flats, and paid hefty prices for them. If any policy is going to cause a fall in HDB prices now, they'd feel very stupid and shortchanged, bearing heavy mortgages on properties now worth so much less. But of course, new buyers would benefit.

The question is how to balance between existing owners preserving their home values, while keeping market prices affordable to newcomers to the market, not just one-sided affordability or one-sided asset value enhancement.

 

[cowbehcowbu]

it is not difficult to make a comparasion
in 1984, 5 room flat was about 50,000.....the fresh graduates earn about 1200

today..a 5 room flat is easily 350000,,7 times..fresh graduate earn about 2800..2.5 times......

so the affordability of HDB has drop by 7/2.5=2.8 times.........

ministoot can verify or refute this simple rario comarison..........

 

[makapaaa]

>>>The HDB claims that one of its key responsibilities is to sustain flat values over the long term. The first of HDB’s four mission statements is to “provide affordable homes of quality and value”.<<<



Good point! Will instruct that Mabroky toad to change his mission statement just like how I changed my charter in a brilliant stroke! *chey*​

 

[hockbeng]

The issue of HDB flat pricing is a very tricky one. Many Singaporeans and PRs already own HDB flats, and paid hefty prices for them. If any policy is going to cause a fall in HDB prices now, they'd feel very stupid and shortchanged, bearing heavy mortgages on properties now worth so much less. But of course, new buyers would benefit.

The question is how to balance between existing owners preserving their home values, while keeping market prices affordable to newcomers to the market, not just one-sided affordability or one-sided asset value enhancement.

It's not tricky at all.

An artificially inflated asset is an artificially inflated asset.

Ultimately, someone has to pay for it: Those foolish enough to believe in our Gov propaganda that our 99 yr lease public housing is worth more than half million $ or more , or the new generation of young Sporeans who are being force fed artificially high housing costs or face the prospect of not owning their own home.

Market forces should be allowed to do its work and HDB should get out of building homes for sporeans. Land should be sold regularly and routinely to the highest bidder on an open bidding system regardless of market situation; in other words, no such thing as freezing of land sales.

If the highest bidder is $1, than the land will be sold at $1. Just like how the COE works.