People should be free to decide what a flat is worth: HDB

[mr funny]

http://www.straitstimes.com/ST%2BFor...ry_429351.html

Sep 14, 2009 Monday

People should be free to decide what a flat is worth: HDB


I THANK Mr Jason Zheng ('The issue here is cash over valuation'), Mr Steven Yeo ('Should the HDB build 19,000 flats a year instead?') and Mr Loo Fook Kay ('What percentage of income will a single Singaporean earning $2,500 a month pay?') for their views on HDB flats (Sept5).

HDB's key responsibilities are to help first-time home buyers and to ensure flat values are sustained over the long term.

Mr Zheng raised the issue of cash over valuation. COV is what a buyer agrees to pay the seller when he feels a particular flat is worth more than its valuation. COV applies in the private residential market as well. Banks will grant a loan of only up to 90 per cent of valuation, and buyers will have to pay at least 5 per cent of the valuation and the excess in cash.

HDB cannot ban COV or provide loans for it, as suggested by Mr Zheng. People should be free to decide what their flat or intended purchase is worth to them, and not be forced to buy and sell at fixed prices. While financing for COVs may appear helpful, it is more likely to fuel the escalation of prices and worsen the situation.

Mr Yeo commented on the number of marriages and new flats. The 24,000 marriages last year included those with or among foreigners, re-marriages, those with high income and those who have other accommodation. Not all 24,000 qualify for subsidised flats. In recent years, total bookings of new and resale flats with grants were between 13,000 and 15,000 a year.

Mr Loo asked about the affordability of a single buying a three-room resale flat at the quoted price of $200,000. With an $11,000 subsidy, an eligible single earning $2,500 a month would need 29 per cent of his income for the loan. He can pay $575 from his monthly CPF contribution, with the remaining $146 in cash.

The Government has enabled about 80 per cent of the population to own their homes - the highest home ownership rate in the world. HDB will continue to ensure that public housing remains affordable to the majority of Singaporeans.

Yap Chin Beng
Deputy Chief Executive Officer
(Estates & Corporate)
Housing & Development Board

[gfoo]

what a bunch of crybaby spineless cockanadens.

end of 2008 a whole bunch of people were selling HDB at value or below valuation. where were this bunch?

let mr market decide

[jlrx]

what a bunch of crybaby spineless cockanadens.

end of 2008 a whole bunch of people were selling HDB at value or below valuation. where were this bunch?

let mr market decide

"This bunch" were waiting for prices to fall further.

[proud owner]

"This bunch" were waiting for prices to fall further.

a similar bunch in the private condos... didnt buy in 2006 and then chase mkt all the way to 2009

[durian]

They hope prices will crash by 50% or else cannot aford to form a family etc....

what a bunch of crybaby spineless cockanadens.

end of 2008 a whole bunch of people were selling HDB at value or below valuation. where were this bunch?

let mr market decide

[gfoo]

if prices crash by 50%, these pple dun need to think of setting up family already - should think of putting food in their mouth first

prices plummet, blame gahmen for building too many. prices rise, blame gahmen for building too few/income cap. prices stagnate too long, blame gahmen for not doing enough upgrading.

Like her majesty Kumar likes to say:

Niniamah

[jlrx]

a similar bunch in the private condos... didnt buy in 2006 and then chase mkt all the way to 2009

It was actually in two stages ...

1. Didn't buy in 2006, then chase mkt all the way to 2007.

2. Didn't buy in 2008, then chase mkt all the way to 2009.

[echotrain]

what a bunch of crybaby spineless cockanadens.

end of 2008 a whole bunch of people were selling HDB at value or below valuation. where were this bunch?

let mr market decide

You are probably right.

Let the market decide, no buyer where got such a price? All waiting for market to fall. Now that the govt has done them a favour, have to remind them not to wait too long again. Otherwise they will miss the boat again.

[august]

oh clever, so now it is the "people" who decides hdb prices, as if hdb has nothing to do with it. hahahaha