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18-07-12, 22:55
http://www.straitstimes.com/Singapore/Story/STIStory_820957.html
Housing subsidies bigger than they seem: MND
Ministry explains that Housing Board generally incurs loss on BTO projects
Published on Jul 11, 2012
By RACHEL CHANG
FLAT-BUYERS receive subsidies that are bigger than they seem at first glance, said the National Development Ministry (MND).
This is because the Housing Board generally makes a loss on its build-to-order (BTO) flat projects, it said in a written reply on Monday to a parliamentary question from Ms Ellen Lee (Sembawang GRC).
Ms Lee had asked a series of questions about the cost of building an HDB flat and how housing subsidies have changed in the last 10 years.
Using the example of Waterway Banks, a BTO project in Punggol launched last November, the ministry said the 1,016-unit development cost HDB $279 million to build, while sales proceeds totalled $240 million.
HDB therefore incurred a loss of $39 million, it said, by pricing the BTO flats substantially below the market price of comparable resale flats in the same area.
So, each family actually receives 'a much higher subsidy' than the cash grants HDB hands out.
The ministry also noted that these cash grants have more than doubled in the last decade, especially for lower-income families.
Two extra grants - Additional CPF Housing Grant and Special CPF Housing Grant - were introduced in the last six years.
Together, these give households earning $1,500 or less a month and buying their first flat from HDB a total grant of $60,000.
Previously, no grants were available.
As for first-timers who buy resale flats, subsidies of up to $80,000 are available.
A decade ago, only the CPF Housing grant of up to $40,000 was available for these buyers of resale flats.
Replying to Workers' Party MP Muhamad Faisal Abdul Manap (Aljunied GRC), the ministry said 7,400 households sold their flats to settle their HDB mortgage arrears in 2010.
This represented 1.8 per cent of all outstanding HDB loan cases in 2010.
In 2011, the number of such households fell to 3,300, or 0.9 per cent of all outstanding HDB loan cases.
For families who can no longer afford their flats, HDB 'will try to render practical help', by getting them a public rental flat or offering them another loan if they want to buy a smaller flat, the ministry said.
In some cases, HDB has directly allocated a flat from its stock to these families at market rate, it said.
[email protected]
Housing subsidies bigger than they seem: MND
Ministry explains that Housing Board generally incurs loss on BTO projects
Published on Jul 11, 2012
By RACHEL CHANG
FLAT-BUYERS receive subsidies that are bigger than they seem at first glance, said the National Development Ministry (MND).
This is because the Housing Board generally makes a loss on its build-to-order (BTO) flat projects, it said in a written reply on Monday to a parliamentary question from Ms Ellen Lee (Sembawang GRC).
Ms Lee had asked a series of questions about the cost of building an HDB flat and how housing subsidies have changed in the last 10 years.
Using the example of Waterway Banks, a BTO project in Punggol launched last November, the ministry said the 1,016-unit development cost HDB $279 million to build, while sales proceeds totalled $240 million.
HDB therefore incurred a loss of $39 million, it said, by pricing the BTO flats substantially below the market price of comparable resale flats in the same area.
So, each family actually receives 'a much higher subsidy' than the cash grants HDB hands out.
The ministry also noted that these cash grants have more than doubled in the last decade, especially for lower-income families.
Two extra grants - Additional CPF Housing Grant and Special CPF Housing Grant - were introduced in the last six years.
Together, these give households earning $1,500 or less a month and buying their first flat from HDB a total grant of $60,000.
Previously, no grants were available.
As for first-timers who buy resale flats, subsidies of up to $80,000 are available.
A decade ago, only the CPF Housing grant of up to $40,000 was available for these buyers of resale flats.
Replying to Workers' Party MP Muhamad Faisal Abdul Manap (Aljunied GRC), the ministry said 7,400 households sold their flats to settle their HDB mortgage arrears in 2010.
This represented 1.8 per cent of all outstanding HDB loan cases in 2010.
In 2011, the number of such households fell to 3,300, or 0.9 per cent of all outstanding HDB loan cases.
For families who can no longer afford their flats, HDB 'will try to render practical help', by getting them a public rental flat or offering them another loan if they want to buy a smaller flat, the ministry said.
In some cases, HDB has directly allocated a flat from its stock to these families at market rate, it said.
[email protected]