Tag Archives: HDB

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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Squeezed even harder

Posted on 1 Sep 2009 | Comments Off on Squeezed even harder

THE HDB resale price index has surged relentlessly since 2007. Since the first quarter of 2007, the index has increased 35.3 per cent and is now at a record high, even though the economy is still recovering from downturn.

This is an anomaly the Government should examine.

The recent Punggol Residences launch by HDB, which drew seven applications for every unit on sale, is another case to show the Government needs to increase supply to prevent housing prices escalating further.

While there is the additional housing grant to help the lower-income group, I urge the Government not to overlook the sandwich class group – those who are not eligible for subsidised public housing, yet cannot afford private housing. The escalation of mass market property prices has made the dream of owning a private property even more distant.

I urge the Government to reconsider the income ceiling of $8,000 as a criterion to be eligible for the Central Provident Fund (CPF) housing grant, which has been in place since 1994. Since 1994, the CPF Ordinary Account contribution rate has decreased from 30 per cent to 23 per cent and the HDB resale housing index has almost doubled from 75.5 to 140.2.

The supply of executive condominiums has also come to a halt. For those who aspire to condo living, Design, Build and Sell Scheme units launched by private developers range in prices from $550,000 to $720,000. Given the income ceiling of $8,000, couples who buy such flats must take huge loans which may not be proportionate to their income. Continue reading →

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