Tag Archives: Housing and Development Board

Four ways to bring down flat prices

Posted on 17 Sep 2009 | Comments Off on Four ways to bring down flat prices

I APPLAUD the new measures by the Government to curb speculation in the property market and reinstate the Government Land Sales Programme.

However, they do little to alleviate the structural problems at the root of the resale HDB market and the frustrations of many home seekers. It is too easy to blame cash over valuation (COV) for the rampant rise in resale prices or repeat continuously that resale HDB flats are affordable.

Four measures could be taken to significantly improve the supply of resale HDB flats and thus lower prices.

~ HDB flats should be affordable housing only for genuine home owners who occupy the flats.

They should not be used for investment or rental income.The resale market is still tight because many owners, who have already moved out, are simply holding on to their property or hoping for a collective sale.

If owners do not live in their flats any more, they should be put on the market immediately.

~ There should be an income and assets cap for owners of HDB flats.

If the owners are very successful in life after buying an HDB flat, they should leave their property on reaching a certain threshold and sell it.It is not right that families with multiple properties and very high salaries are able to hold on to their HDB flats. Continue reading →

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Keep HDB flats affordable to the sandwiched class

Posted on 3 Aug 2009 | Comments Off on Keep HDB flats affordable to the sandwiched class

I REFER to last Thursday’s report, ‘Mah sounds warning on property buzz’, on the current property buying frenzy, and National Development Minister Mah Bow Tan’s warning that a property bubble may be forming.

I would like to highlight the plight of genuine home seekers in such an environment. Many young couples, including my fiancee and me, who are looking for a suitable home to start a family have seen affordability plunge in the past few years.

As reported in the media several times, private property prices have spiked recently due to speculative demand and better-off buyers going in for fear property prices will continue to rise. Property developers are making use of this window of opportunity to launch property developments at premium prices.

The prices of HDB resale flats, although subject to less speculation pressures due to sale restrictions, have also increased dramatically. Continue reading →

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