http://www.businesstimes.com.sg/sub/...07140,00.html?
Published April 29, 2011
GENERAL ELECTION 2011
Sell flats to first-time buyers at cost-plus: NSP
By UMA SHANKARI
THE National Solidarity Party (NSP) reiterated its call for cheaper public housing yesterday.
NSP secretary-general Goh Meng Seng said that the government could sell the HDB land to build the flats at discounts of 30-50 per cent to the market rate. NSP also wants the government to sell new HDB flats to first-time buyers at cost-plus.
Mr Goh was speaking to reporters to rebut National Development Minister Mah Bow Tan's comments on Wednesday. Mr Mah said that NSP is opposing the government's approach of providing HDB flats as both a home and an asset for Singaporeans.
Mr Goh said that selling new flats to first-time buyers at cost-plus will not lead to resale flats losing their values as an asset.
'The resale market and the market demand for new flats are two totally different market segments,' Mr Goh said yesterday. 'The core demand for the resale market is made up of PRs (permanent residents), upgraders and singles who are not allowed to buy new flats from HDB.'
'The resale market will still be vibrant and their (homeowners') flats can still appreciate in value.'
Mr Goh also echoed the Workers' Party's stance that since land costs make up the bulk of the board's expenses in building flats, the government should sell the land to HDB at a lower price.
Since the government acquired most of the land at 'dirt cheap' prices decades ago, it can give HDB a discount of up to 50 per cent when selling the land in order to bring down home prices, Mr Goh said.
NSP is looking for 24 seats in Parliament - the most of any opposition party here. At its Marine Parade rally last night, a crowd of hundreds gathered to hear candidates speak on a variety of issues, including the rising cost of living and climbing HDB prices, as well as the recent influx of foreign workers.
The NSP candidate for Mountbatten, Jeanette Chong-Aruldoss, pointed out that the ruling People's Action Party (PAP) has been trying to manage inflation by asking shopowners to keep prices steady.
However, government agencies such as the National Environment Agency are still raising their tenants' rents, she said. This forces shopowners to either pass on the higher costs to their customers, or else absorb it themselves.
The loudest cheers of the night were reserved for 24-year-old Nicole Seah, the youngest candidate to compete in the coming polls. Ms Seah, who addressed the crowd in English, Mandarin and Malay, took the PAP to task for the difficulties caused by its policies since the last election.
In addition to the sharp increase in HDB prices and Singapore's foreign population, the Goods and Services Tax (GST) was also bumped up to 7 per cent, she said. Not all of the money collected from the higher GST takings was distributed to the lower income, Ms Seah added.
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