NSP's ideas naive, superficial, populist: MahNSP's ideas naive, superficial, populist: Mah
In NSP-run town, all flats will look the same and never appreciate in value, says minister
By Fiona Chan
NATIONAL Development Minister Mah Bow Tan yesterday painted a bleak picture of what a town governed according to opposition proposals would look like.
Calling it the NSP Town, after the National Solidarity Party that is contesting in Tampines GRC against Mr Mah's People's Action Party (PAP) team, he said it would be built on ideas that are 'naive, superficial and populist'.
First, flats in NSP Town would all look exactly the same, Mr Mah said at the PAP rally in Tampines Stadium last night.
'They want basic flats. So, basic flats, no premium finishing, no community facilities,' he told a 2,000- strong crowd.
'No upgrading in future, because when you upgrade, you increase the value of your flat. No, cannot.'
New flats would also be sold at cost price. This stems from the NSP's suggestion of a 'cost-plus' pricing policy: pegging the price of a new flat to the cost of building it, plus a slight mark-up.
The NSP has said this will be cheaper than the current formula of pegging new flat prices to market prices and then giving a discount, but Mr Mah disagrees.
'Cost price doesn't always mean lower price,' he said.
Because flats in NSP Town are priced based on cost, they would all have the same price, regardless of what floor they are on and how far they are from the MRT station, Mr Mah said.
'Second-floor flat must be same price as top-floor flat, right?' he said.
'Every flat priced equally, even though they are not equal.'
Buyers of flats in NSP Town must also pay off their loans in 15 to 20 years, said Mr Mah. 'We give you the choice to stretch the payments over a longer period, up to 30 years. It's your choice.'
The NSP's Mr Goh Meng Seng has said that a 30-year mortgage, the longest available, is 'not affordable' as it would wipe out the Central Provident Fund accounts of many home buyers.
Finally, Mr Mah said, the value of a flat in NSP Town will never change.
This is because, according to the NSP, 'a flat must only be a shelter, nothing more. It cannot be an asset'.
An NSP flat worth $200,000 today will still be worth the same 10 years later, Mr Mah said. 'No one must be allowed to benefit from owning a piece of property. Asset enhancement not important.'
NSP's Mr Goh said last month that the PAP's asset enhancement scheme means future generations will have to pay more for flats, as property prices keep growing.
But the rising value of flats is a point of pride for Mr Mah, who noted that a four- room flat in Tampines cost less than $100,000 in the 1980s. Today, that same flat can fetch more than $400,000.
'But back then, Tampines had nothing - no MRT, no regional centre, no shopping malls, no upgrading,' he said.
Millions of dollars in investments later, 'we have turned Tampines into an attractive place to stay in, and we have raised the value of your flats'.
Mr Mah also said that while the HDB has many rules, it can be flexible.
He cited the case of a single mother who had appealed to him to let her keep her flat, which had been registered jointly in her name and her sister's name.
Her sister was getting married and moving out, but HDB granted the mother a higher loan so she could stay on in the same flat to raise her son, Mr Mah said.
'The Government has all these policies in place. But these are not hard policies. There is heart in it as well. There is compassion,' he said.
'When there are cases which fall through the gaps, HDB does make exceptions... and where the rules need to be updated, we will do so,' he added.
'Where we have gone wrong, we will correct our policies.'
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In NSP-run town, all flats will look the same and never appreciate in value, says minister
By Fiona Chan
NATIONAL Development Minister Mah Bow Tan yesterday painted a bleak picture of what a town governed according to opposition proposals would look like.
Calling it the NSP Town, after the National Solidarity Party that is contesting in Tampines GRC against Mr Mah's People's Action Party (PAP) team, he said it would be built on ideas that are 'naive, superficial and populist'.
First, flats in NSP Town would all look exactly the same, Mr Mah said at the PAP rally in Tampines Stadium last night.
'They want basic flats. So, basic flats, no premium finishing, no community facilities,' he told a 2,000- strong crowd.
'No upgrading in future, because when you upgrade, you increase the value of your flat. No, cannot.'
New flats would also be sold at cost price. This stems from the NSP's suggestion of a 'cost-plus' pricing policy: pegging the price of a new flat to the cost of building it, plus a slight mark-up.
The NSP has said this will be cheaper than the current formula of pegging new flat prices to market prices and then giving a discount, but Mr Mah disagrees.
'Cost price doesn't always mean lower price,' he said.
Because flats in NSP Town are priced based on cost, they would all have the same price, regardless of what floor they are on and how far they are from the MRT station, Mr Mah said.
'Second-floor flat must be same price as top-floor flat, right?' he said.
'Every flat priced equally, even though they are not equal.'
Buyers of flats in NSP Town must also pay off their loans in 15 to 20 years, said Mr Mah. 'We give you the choice to stretch the payments over a longer period, up to 30 years. It's your choice.'
The NSP's Mr Goh Meng Seng has said that a 30-year mortgage, the longest available, is 'not affordable' as it would wipe out the Central Provident Fund accounts of many home buyers.
Finally, Mr Mah said, the value of a flat in NSP Town will never change.
This is because, according to the NSP, 'a flat must only be a shelter, nothing more. It cannot be an asset'.
An NSP flat worth $200,000 today will still be worth the same 10 years later, Mr Mah said. 'No one must be allowed to benefit from owning a piece of property. Asset enhancement not important.'
NSP's Mr Goh said last month that the PAP's asset enhancement scheme means future generations will have to pay more for flats, as property prices keep growing.
But the rising value of flats is a point of pride for Mr Mah, who noted that a four- room flat in Tampines cost less than $100,000 in the 1980s. Today, that same flat can fetch more than $400,000.
'But back then, Tampines had nothing - no MRT, no regional centre, no shopping malls, no upgrading,' he said.
Millions of dollars in investments later, 'we have turned Tampines into an attractive place to stay in, and we have raised the value of your flats'.
Mr Mah also said that while the HDB has many rules, it can be flexible.
He cited the case of a single mother who had appealed to him to let her keep her flat, which had been registered jointly in her name and her sister's name.
Her sister was getting married and moving out, but HDB granted the mother a higher loan so she could stay on in the same flat to raise her son, Mr Mah said.
'The Government has all these policies in place. But these are not hard policies. There is heart in it as well. There is compassion,' he said.
'When there are cases which fall through the gaps, HDB does make exceptions... and where the rules need to be updated, we will do so,' he added.
'Where we have gone wrong, we will correct our policies.'
[email protected]
