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Thread: HDB flats: Why did supply fail to keep up with population growth?

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    mr funny is offline Any complaints please PM me
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    Default HDB flats: Why did supply fail to keep up with population growth?

    http://www.straitstimes.com/STForum/...ry_481863.html

    Jan 26, 2010

    HDB flats: Why did supply fail to keep up with population growth?


    WITH reference to the Housing and Development Board's (HDB) reply last Thursday ('Income ceiling helps ensure neediest get subsidised flats'), my sense is that the HDB underestimated the social ramifications of the resale policy to permanent residents (PRs), while it failed to maintain the Home Ownership Scheme for the people to balance demand of rapid population growth during the past 20 years. As a result, low- and middle-income households have suffered.

    The ceiling of $3,000 and $2,000 for three- and two-room flats did not help as HDB did not build enough units to meet the market, citing low demand. This drastic reduction in the number of flats built is detrimental to the ageing population in the rental and sales market.

    The policy to allow 533,000 PRs to buy resale HDB flats works against citizens. It is difficult to comprehend why HDB began to wind down the momentum to build more flats during the 1990s when the population ballooned from 3.047 million to 4.027 million by the end of 2000.

    The yearly average peak of 30,900 HDB flats built during the 1980s corresponded with the population growth meeting the Home Ownership Scheme. However, during the 1990s when one more million people were added, HDB began to taper down to 25,700. What puzzles me most is that by 2008, when another 810,000 people were added to the population, HDB built only 8,260 units. Why the paradigm shift?

    Take the example of a Queenstown five-room flat at $619,000. Single-income families earning $6,000 with two children cannot afford to pay 50 per cent of their income to buy such a flat. Can the $30,000 subsidy help them? Combined-income families with two children earning $8,000 may falter to commit 38 per cent for such flats. These groups are the 'neediest' for bigger flats, yet the Home Ownership Scheme eludes them.

    Paul Chan

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    So Mr. Paul must be those cheapskate, no money but want to stay town, stay near MRT kind.. Might as well, throw in bay view, sea view, and with 20 shopping centres around. And best of all, a 5 room HDB 75th floor cost only 150k. Stupid.



    Quote Originally Posted by mr funny
    http://www.straitstimes.com/STForum/...ry_481863.html

    Jan 26, 2010

    HDB flats: Why did supply fail to keep up with population growth?


    WITH reference to the Housing and Development Board's (HDB) reply last Thursday ('Income ceiling helps ensure neediest get subsidised flats'), my sense is that the HDB underestimated the social ramifications of the resale policy to permanent residents (PRs), while it failed to maintain the Home Ownership Scheme for the people to balance demand of rapid population growth during the past 20 years. As a result, low- and middle-income households have suffered.

    The ceiling of $3,000 and $2,000 for three- and two-room flats did not help as HDB did not build enough units to meet the market, citing low demand. This drastic reduction in the number of flats built is detrimental to the ageing population in the rental and sales market.

    The policy to allow 533,000 PRs to buy resale HDB flats works against citizens. It is difficult to comprehend why HDB began to wind down the momentum to build more flats during the 1990s when the population ballooned from 3.047 million to 4.027 million by the end of 2000.

    The yearly average peak of 30,900 HDB flats built during the 1980s corresponded with the population growth meeting the Home Ownership Scheme. However, during the 1990s when one more million people were added, HDB began to taper down to 25,700. What puzzles me most is that by 2008, when another 810,000 people were added to the population, HDB built only 8,260 units. Why the paradigm shift?

    Take the example of a Queenstown five-room flat at $619,000. Single-income families earning $6,000 with two children cannot afford to pay 50 per cent of their income to buy such a flat. Can the $30,000 subsidy help them? Combined-income families with two children earning $8,000 may falter to commit 38 per cent for such flats. These groups are the 'neediest' for bigger flats, yet the Home Ownership Scheme eludes them.

    Paul Chan

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    Quote Originally Posted by thomastansb
    So Mr. Paul must be those cheapskate, no money but want to stay town, stay near MRT kind.. Might as well, throw in bay view, sea view, and with 20 shopping centres around. And best of all, a 5 room HDB 75th floor cost only 150k. Stupid.
    I think Mr Paul's point is about supply doesn't meet demand; some agencies not performing their job functions well enough

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    HDB overbuilt HDB flats back in the 90's because they built ahead of demand. This results in stagnation of property price between 2002-2005. The current BTO projects are meant to avoid oversupply. May be this will result in another extreme ... who knows.

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    I think HDB is trying to tell people who do not have enough money, please buy within your means. i.e. go stay in woodlands, sembawang, yishun or jurong west. Got a place to stay can liaoz, don't be choosy.

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    Quote Originally Posted by azeoprop
    I think HDB is trying to tell people who do not have enough money, please buy within your means. i.e. go stay in woodlands, sembawang, yishun or jurong west. Got a place to stay can liaoz, don't be choosy.
    they have been saying so YEARS ... indirectly

    ' there are enuff flats for all ' ... north , north east , west
    ' everyone can afford' .... north, north east , west

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    Thought this is always the case? You need to pay more $ to stay near city + all facilities. If got lesser money, can always stay at outskirt. This never changed, has it?

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    xebay11 is offline New Launch Project Specialist
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    Quote Originally Posted by Squall8888
    Thought this is always the case? You need to pay more $ to stay near city + all facilities. If got lesser money, can always stay at outskirt. This never changed, has it?
    Problem is only the older generation willing to stay further outskirts. The new generation have different aspirations, so they will have to pay the price.

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    Quote Originally Posted by azeoprop
    I think HDB is trying to tell people who do not have enough money, please buy within your means. i.e. go stay in woodlands, sembawang, yishun or jurong west. Got a place to stay can liaoz, don't be choosy.
    who say woodlands is cheap. my friend jus bought a 5 room or exec flat at $36000 COV!!!!!

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    Quote Originally Posted by ay123
    who say woodlands is cheap. my friend jus bought a 5 room or exec flat at $36000 COV!!!!!
    Wow! who knows... maybe an unblocked view of colorful Merlin Tower...

    Anyway, my personal opinion is that HDB is not keeping with times. Only know Upgrading to reward obedient voters & BTO to pacify young professional couples....

    Like what earlier comments, HDB is not pro-active enough to cater to demand... too often a slow catch-up or jerky start-stop... Wonder if they the HDB ever collaborate with Immigration in strategic planning?

    Not to mention the lack of any HDB explanation for those DBSS that cost $700k+ and best still subject to $8k ceiling . Not sure who are they kidding

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    Quote Originally Posted by scsc
    Wow! who knows... maybe an unblocked view of colorful Merlin Tower...

    Anyway, my personal opinion is that HDB is not keeping with times. Only know Upgrading to reward obedient voters & BTO to pacify young professional couples....

    Like what earlier comments, HDB is not pro-active enough to cater to demand... too often a slow catch-up or jerky start-stop... Wonder if they the HDB ever collaborate with Immigration in strategic planning?

    Not to mention the lack of any HDB explanation for those DBSS that cost $700k+ and best still subject to $8k ceiling . Not sure who are they kidding
    That's why 3 oppositions are eyeing Tampines GRC, and MM already say that if MBT can't defend himself, then he's out.
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

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    HDB considering imposing a quota on PRs in resale flats
    Asha Popatlal
    Channel NewsAsia
    Wednesday, 27 January 2010, 2113 hrs


    HDB flats

    The Housing & Development Board (HDB) is considering imposing a quota on Permanent Residents buying resale HDB flats. This could be done in the same way that racial quotas are imposed to prevent ethnic enclaves.

    The issue came up in a dialogue session on public housing with Minister Mentor Lee Kuan Yew where questions on affordability and aspirations were brought up.

    Public housing has come a long way from where it started 50 years ago. Still, issues remain. These include how foreigners are perceived to affect pricing of flats.

    Mr Lee said over the next 5 years, the intake of foreigners will slow down but that means Singaporeans will have to increase their productivity.

    Going further, dialogue moderator Professor Tommy Koh asked if more could be done to integrate those already here, in much the same way that the Ethnic Integration Policy was introduced in 1989 in public housing estates to get races mingling.

    Mr Lee said: "Could the same approach be adopted towards integrating new Singaporeans? We are not allowing new Singaporeans whether from China, India, Malaysia, or whatever, to congregate in the same tower blocks, which they are already beginning to do."

    "They buy 2nd hand flats and they congregate. So we have a record of how many new citizens living where and we keep their numbers dispersed. It's a very valuable tool of communal harmony."

    HDB later clarified that a quota policy on PRs for resale flats was being considered.

    One other issue that came up during the dialogue is that of affordability, which has come up repeatedly. One suggestion was to have HDB provide more rental housing units.

    Mr Lee said: 'I completely disagree with that policy. It will lead us into all kinds of problems. You are getting a dependency group - dependent on the government on constant subsidies, whereas our philosophy is 'I give you this asset, I will increase the value of the asset as the economy grows but it is yours and you look after it.' And we do not have run down public housing like other countries which are rental."

    Mr Lee was also asked for his take on a recent media report that at least three opposition parties were eyeing National Development Minister Mah Bow Tan's ward with the aim of making public housing affordability an election issue.

    He explained: "What is affordabilty? From the point of view of the buyer? And the government that is subsidising you? The government has to price it at a level that is fair to the revenue it is collecting and fair to the individual, not only the present buyer but past and future buyers. If Mr Mah is unable to defend himself, he deserves to lose.

    "No country in the world has given its citizens and families an asset as valuable as what we have given every family here. And if you say that policy is at fault, you must be daft."

    Mr Lee was speaking before some 500 delegates from 20 countries at a housing conference.

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    Don't cast protest vote
    Sue-Ann Chia
    Senior Political Correspondent
    The Straits Times


    Mr Lee's blunt remarks were in response to a question by dialogue moderator Tommy Koh, who pulled out a Straits Times report which said at least 3 opposition parties are keen to contest Tampines GRC that Mr Mah helms. -- Photo: Lau FookKong, ST

    The current contentious issue on the affordability of public housing was given another airing by Minister Mentor Lee Kuan Yew who cautioned Singaporeans not to cast a protest vote against the ruling party over this.

    As Singaporeans lament about rising flat prices, he said they ought to understand the Government sells them at a subsidised price, below market rate, so that they can own an asset that will appreciate in value over the years. It adds to their wealth and this is asset-enhancing policy Mr Lee believes citizens should not find fault with.

    If they do, they must be 'daft', he said at a dialogue during a housing conference as part of a series of events to mark the Housing Board's (HDB) 50th anniversary.

    And if National Development Minister Mah Bow Tan is unable to defend this policy, 'he deserves to lose' at the next General Election, he quipped to laughter from the participants, including a chuckling Mr Mah.

    But if Mr Mah lose to the opposition, he warned that Singaporeans better sell their flats fast as it would no longer be of any value.

    Mr Lee's blunt remarks were in response to a question by dialogue moderator Tommy Koh, who pulled out a Straits Times report which said at least three opposition parties are keen to contest Tampines GRC that Mr Mah helms, as they want to raise the affordability of public housing as an election issue to gain votes.

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