Tweet
Mah Bow Tan asks home buyers to be “realistic”
National Development Minister Mah Bow Tan has urged home buyers to be “realistic” in their expectations of public housing saying that HDB cannot meet all expectations of home buyers even though the standard of housing has increased over the years.
Mr Mah, who is 61, recalled his childhood days living in Kim Keat Avenue. His then three-room HDB flat ‘was like a palace’ – even though there was just one toilet and bathroom in a flat with eight people.
“Although new HDB flats are going to be even nicer over time… certain expectations, we cannot meet….HDB cannot build flats only in mature estates, or flats that are only on high floors. I need to have flats on the second floor and third floor as well. And who is going to live on these floors? So I think our commitment is that we will build and make available flats to young couples at affordable prices,” he added.
Mr Mah also dismissed the suggestion by NMP Viswa Sadasivan that there is a groundswell of discontent that first-time buyers are not able to buy the flats.
He said that feedback from the ground has shown that home buyers ‘would like HDB to provide ready-made flats in good locations at cheaper prices, faster, better… and this is the reason why I think we have to better communicate our policies’, said Mr Mah.
The prices of HDB flats have sky-rocketed in recent months due to limited supply of new flats built by HDB and rising demand from PRs.
An ERA report in July this year revealed that about 40 per cent of the buyers in the resale market are PRs.
An Indonesian PR “spoiled” the market lately by paying $653,000 for a 4-room HDB flat in Queenstown when he can well afford a condominium.
Mr Mah also said that PRs occupy less than 5 per cent of all Housing Board flats, but did not quote any sources to substantiate his claim.
While the prices of new HDB flats have doubled or even tripled over the last two decades, the wages of ordinary Singaporeans have not kept pace with the housing prices.
A new 4-room BTO flat in Punggol costs around $300,000 today compared to $220,000 for a similar-sized flat in nearby Sengkang five years ago.
On the other hand, the starting pay of undergraduates remain stagnant at between $2,400 – $2,800.
Despite evidence showing otherwise, HDB is adamant that public housing remains affordable to the majority of Singaporeans.
Singaporeans now have to fork out a larger proportion of their monthly salary to finance the housing loan, leaving very little, if any at all for their retirement needs.
Mr Mah reiterated that HDB has incurred a large deficit in “subsidizing” Singaporeans in public housing:
“‘Overall, HDB incurs a large deficit in building and selling flats every year, as reflected in its audited annual accounts. In its financial year from 2008 to 2009, HDB incurred a deficit of $1.5 billion for the home ownership programme alone,” he added.
For first-time buyers who are encountering genuine difficulties in getting a flat of their choice, Mr Mah’s words will offer scant comfort to them.
Perhaps they should simply heed his advice and be “realistic” instead of clamoring for an ideal flat in an ideal location.
Mr Mah, who is 61, recalled his childhood days living in Kim Keat Avenue. His then three-room HDB flat ‘was like a palace’ – even though there was just one toilet and bathroom in a flat with eight people.
“Although new HDB flats are going to be even nicer over time… certain expectations, we cannot meet….HDB cannot build flats only in mature estates, or flats that are only on high floors. I need to have flats on the second floor and third floor as well. And who is going to live on these floors? So I think our commitment is that we will build and make available flats to young couples at affordable prices,” he added.
Mr Mah also dismissed the suggestion by NMP Viswa Sadasivan that there is a groundswell of discontent that first-time buyers are not able to buy the flats.
He said that feedback from the ground has shown that home buyers ‘would like HDB to provide ready-made flats in good locations at cheaper prices, faster, better… and this is the reason why I think we have to better communicate our policies’, said Mr Mah.
The prices of HDB flats have sky-rocketed in recent months due to limited supply of new flats built by HDB and rising demand from PRs.
An ERA report in July this year revealed that about 40 per cent of the buyers in the resale market are PRs.
An Indonesian PR “spoiled” the market lately by paying $653,000 for a 4-room HDB flat in Queenstown when he can well afford a condominium.
Mr Mah also said that PRs occupy less than 5 per cent of all Housing Board flats, but did not quote any sources to substantiate his claim.
While the prices of new HDB flats have doubled or even tripled over the last two decades, the wages of ordinary Singaporeans have not kept pace with the housing prices.
A new 4-room BTO flat in Punggol costs around $300,000 today compared to $220,000 for a similar-sized flat in nearby Sengkang five years ago.
On the other hand, the starting pay of undergraduates remain stagnant at between $2,400 – $2,800.
Despite evidence showing otherwise, HDB is adamant that public housing remains affordable to the majority of Singaporeans.
Singaporeans now have to fork out a larger proportion of their monthly salary to finance the housing loan, leaving very little, if any at all for their retirement needs.
Mr Mah reiterated that HDB has incurred a large deficit in “subsidizing” Singaporeans in public housing:
“‘Overall, HDB incurs a large deficit in building and selling flats every year, as reflected in its audited annual accounts. In its financial year from 2008 to 2009, HDB incurred a deficit of $1.5 billion for the home ownership programme alone,” he added.
For first-time buyers who are encountering genuine difficulties in getting a flat of their choice, Mr Mah’s words will offer scant comfort to them.
Perhaps they should simply heed his advice and be “realistic” instead of clamoring for an ideal flat in an ideal location.
Comment