mr funny
03-08-09, 13:34
http://www.straitstimes.com/ST%2BForum/Online%2BStory/STIStory_411495.html
August 3, 2009 Monday
Keep HDB flats affordable to the sandwiched class
I REFER to last Thursday's report, 'Mah sounds warning on property buzz', on the current property buying frenzy, and National Development Minister Mah Bow Tan's warning that a property bubble may be forming.
I would like to highlight the plight of genuine home seekers in such an environment. Many young couples, including my fiancee and me, who are looking for a suitable home to start a family have seen affordability plunge in the past few years.
As reported in the media several times, private property prices have spiked recently due to speculative demand and better-off buyers going in for fear property prices will continue to rise. Property developers are making use of this window of opportunity to launch property developments at premium prices.
The prices of HDB resale flats, although subject to less speculation pressures due to sale restrictions, have also increased dramatically.
In the current economic downturn, most salaried Singaporeans would count their lucky stars if they did not have to suffer a pay cut.
Affordability of buying a home has simply plunged.
It is important to ensure that homes, especially new or resale HDB flats, continue to be affordable to most Singaporeans and young couples looking to start a family. Given the spike in HDB resale prices, as well as prices of new flats to a lesser extent, and the corresponding plunge in affordability, it is timely for the HDB to review how it can continue to fulfil its first mission: 'We provide affordable homes of quality and value.'
The CPF housing grant and the HDB housing loan are two schemes that have helped maintain the affordability. However, like all policies, these schemes need to be refreshed and reviewed.
The combined income ceiling of $8,000 a month to be eligible for the schemes has been in place since 1994. Since then, the HDB resale price index has gone up by a staggering 190 per cent.
Beside these schemes, perhaps HDB can innovate and come up with new schemes to assist the sandwiched class like us, so its flats continue to be affordable.
Alan Teo
August 3, 2009 Monday
Keep HDB flats affordable to the sandwiched class
I REFER to last Thursday's report, 'Mah sounds warning on property buzz', on the current property buying frenzy, and National Development Minister Mah Bow Tan's warning that a property bubble may be forming.
I would like to highlight the plight of genuine home seekers in such an environment. Many young couples, including my fiancee and me, who are looking for a suitable home to start a family have seen affordability plunge in the past few years.
As reported in the media several times, private property prices have spiked recently due to speculative demand and better-off buyers going in for fear property prices will continue to rise. Property developers are making use of this window of opportunity to launch property developments at premium prices.
The prices of HDB resale flats, although subject to less speculation pressures due to sale restrictions, have also increased dramatically.
In the current economic downturn, most salaried Singaporeans would count their lucky stars if they did not have to suffer a pay cut.
Affordability of buying a home has simply plunged.
It is important to ensure that homes, especially new or resale HDB flats, continue to be affordable to most Singaporeans and young couples looking to start a family. Given the spike in HDB resale prices, as well as prices of new flats to a lesser extent, and the corresponding plunge in affordability, it is timely for the HDB to review how it can continue to fulfil its first mission: 'We provide affordable homes of quality and value.'
The CPF housing grant and the HDB housing loan are two schemes that have helped maintain the affordability. However, like all policies, these schemes need to be refreshed and reviewed.
The combined income ceiling of $8,000 a month to be eligible for the schemes has been in place since 1994. Since then, the HDB resale price index has gone up by a staggering 190 per cent.
Beside these schemes, perhaps HDB can innovate and come up with new schemes to assist the sandwiched class like us, so its flats continue to be affordable.
Alan Teo