Daily Archives: 5 Sep 2009

Singaporeans up in arms over rising prices of HDB flats

Posted on 5 Sep 2009 | Comments Off on Singaporeans up in arms over rising prices of HDB flats

A deluge of letters were published in the Straits Times forum today protesting against rising prices of HDB flats and imploring HDB to do something to solve the problem!

Despite repeated reassurances from the government that HDB flats remain affordable, the latest coming from National Development Minister Mah Bow Tan, many Singaporeans apparently are not convinced by their arguments.

The writers expressed their disagreement and dissatisfaction with the official response from HDB penned by its Deputy Director Mr Ignatius Lourdesamy who wrote that “HDB flats remain affordable to eligible first-time households as they use between 21 to 25 per cent of their monthly income to service their loans on new and resale HDB flats which are well below the international affordability benchmark of 30 per cent. “(read letter here)

Ng Kok Lim questioned if it is realistic for the market value of flats to be determined by professional valuers. (read letter here)

He wrote:

“Valuers base their valuations on recent transactions, which is as good as being determined by ‘willing buyer, willing seller’, with all its associated problems I have described. Continue reading →

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Ban It ?

Posted on 5 Sep 2009 | Comments Off on Ban It ?

‘The issue here is cash over valuation.’

MR JASON ZHENG: ‘As a young couple, my fiancee and I cannot compete against buyers with access to cash, which is what most sellers ask for now. I have failed in my attempts at half-yearly sales, so the only option is resale flats. The issue here is cash over valuation (COV). The HDB discourages it because of financial prudence, and refuses loans to cover it. Yet most sellers demand substantial COV. Given the situation, why not ban COV? Alternatively, let HDB loans cover COV.’

Undersupply

‘Should the HDB build 19,000 flats a year instead?’

MR STEVEN YEO: ‘How did the HDB determine that building 8,000 new flats a year is sufficient to meet demand? There are seven applicants for each new flat. For example, there were about 24,000 marriages last year, which means only one-third of newlyweds will get a new flat. The other 16,000 must buy resale or private property. If 80 per cent of the population qualify for subsidised flats, should the HDB build 19,000 flats a year instead?’

Three-room flat

‘What percentage of income will a single Singaporean earning $2,500 a month pay?’ Continue reading →

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