Daily Archives: 1 Sep 2009

Debunking the official myths about HDB flats (Part 1)

Posted on 1 Sep 2009 | Comments Off on Debunking the official myths about HDB flats (Part 1)

Debunking the official myths about HDB flats (Part 1): Singaporeans are owners of their HDB flats

By Eugene Yeo, Consultant Editor

[In this 3-part series, Eugene Yeo sets out to debunk the three most pervasive misconceptions of HDB flats: – 1. Singaporeans own the flats, 2. The flats are affordable and 3. Rising prices lead to wealth creation]

MYTH #1: Singaporeans owns their HDB flats.

TRUTH: Singaporeans are merely renting these 99-year leasehold properties from HDB at exorbitant prices.

The Housing Development Board was set up in 1960 during a time when large numbers of people are living in squatter settlements and slums around the city centers.

Under the then indefatigable Minister for National Development Mr Lim Kim San, HDB began the task of solving Singapore’s housing crisis and resettling the squatters. Continue reading →

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Critical issues overlooked in HDB’s letter to Straits Times

Posted on 1 Sep 2009 | Comments Off on Critical issues overlooked in HDB’s letter to Straits Times

Written by Ng E-Jay

The ST letter “How HDB keeps it affordable” (31 Aug 2009) penned by Mr Ignatius Lourdesamy, Deputy Director (Marketing & Projects) of HDB, overlooked several critical issues and failed miserably in its attempt to refute claims that public housing has become too expensive for Singaporeans.

Mr Lourdesamy was responding to earlier queries regarding the proliferation of housing agents and sellers demanding exorbitant “Cash Over Valuation” amounts that in effect corner an already tight property market and cause hardship to families purchashing resale HDB flats.

He was also trying to address issues raised by other ST readers who highlighted the fact that public housing has become too highly correlated with private property prices, as exemplified by the HDB resale price index which has surged 35% over the past two years despite the downturn and now stands at an all time high.

In particular, Mr Chew Kim Cheer argued in his ST letter “Squeezed even harder” (22 Aug 2009) that the Government needs to increase supply to prevent property prices from escalating out of control. Mr Chew also urged the Government to review the $8,000 household income ceiling as an eligibility criterion to qualify for subsidized public housing and a discounted HDB loan. Continue reading →

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