Tampines EC 'presidential suite' to be priced at $2.05m

[psolhawk]

with income capped at 12k per household, its interesting that these buyers can afford 2.05m for the penthouse..

I find it fascinating as well. Worthy of further research as to whether such households are truly over-extending themselves, or whether the flood of hot money is just flowing into our tiny little island to boost property prices further.

I recently learnt that I was three degrees of separation away from that family who purchased that unit. There is no issue of over-extending cos the father (of the son whose name is registered as the lawful owner of that penthouse) is paying it all. In that sense, there appear to be no laws and rules breached, isnt it? Other rich parents can likewise pay for their children's properties, be it subsidized or private. Think about it. That family was just seizing upon an opportunity that sprung out, a developer who tried to navigate the rules and come out with funky units that makes the news. Good/bad publicity for the project.

[Bibi]

Well, KKW incorporated means testing to our healthcare. Cant he introduce that to pp purchasing subsidized HDB flats as well? Dig into the buyer's family status. If very rich, prevent them from buying from HDB.

[yeokiwi]

Well, KKW incorporated means testing to our healthcare. Cant he introduce that to pp purchasing subsidized HDB flats as well? Dig into the buyer's family status. If very rich, prevent them from buying from HDB.

This will introduce a lot of grey areas. Eg.
1) The parents are rich but they do not wish to pay for their kids' properties and the kids are not entitled to subsidized housing? So, the parents need to disown the kids in order for them to buy HDB?
2) The couple is well off but they wish to live modestly to build up their retirement fund (4 rm or 5m) but they are denied subsidized housing.
3) Parents with rich kids and wish to buy studio apartment. The kids are rich does not mean they will pay for their parents.

It is hard to draw a line of who shall receive subsidies. Even the current policy of < $12k is already generating controversy since couple earning S$13k is not much well off than couple earning S$12k.

But, it is definitely possible to limit the amount of subsidy.
Subsidising close to half a million to any Singaporeans for a presidential suite is simply indecent.
Since the gov likes to talk about market subsidy, they should apply the same concept to ECs and ensure that the market subsidy of an EC unit is no more than a HDB 4rm and 5rm flat.

[specuvestor]

^^^ Agree with Yeokiwi... it is not so easy to draft a policy that is easily understood and executed. I think the EC should just be a higher end form of HDB schemes for the middle class rather than to converge with pte condos.

with income capped at 12k per household, its interesting that these buyers can afford 2.05m for the penthouse..

I find it fascinating as well. Worthy of further research as to whether such households are truly over-extending themselves, or whether the flood of hot money is just flowing into our tiny little island to boost property prices further.

I recently learnt that I was three degrees of separation away from that family who purchased that unit. There is no issue of over-extending cos the father (of the son whose name is registered as the lawful owner of that penthouse) is paying it all. In that sense, there appear to be no laws and rules breached, isnt it? Other rich parents can likewise pay for their children's properties, be it subsidized or private. Think about it. That family was just seizing upon an opportunity that sprung out, a developer who tried to navigate the rules and come out with funky units that makes the news. Good/bad publicity for the project.

I agree as well. These huge size are very underpriced and these rich folks are "arbitraging" it. There is unlikely to be such units in future because it obviously go against the spirit of HDB. It is an execution error. They left it too much to free market which like I keep emphasizing, is very efficient but NOT EFFECTIVE in pursuit of greater goals

[plguru]

^^^ Agree with Yeokiwi... it is not so easy to draft a policy that is easily understood and executed. I think the EC should just be a higher end form of HDB schemes for the middle class rather than to converge with pte condos.

with income capped at 12k per household, its interesting that these buyers can afford 2.05m for the penthouse..

I find it fascinating as well. Worthy of further research as to whether such households are truly over-extending themselves, or whether the flood of hot money is just flowing into our tiny little island to boost property prices further.

I recently learnt that I was three degrees of separation away from that family who purchased that unit. There is no issue of over-extending cos the father (of the son whose name is registered as the lawful owner of that penthouse) is paying it all. In that sense, there appear to be no laws and rules breached, isnt it? Other rich parents can likewise pay for their children's properties, be it subsidized or private. Think about it. That family was just seizing upon an opportunity that sprung out, a developer who tried to navigate the rules and come out with funky units that makes the news. Good/bad publicity for the project.

I agree as well. These huge size are very underpriced and these rich folks are "arbitraging" it. There is unlikely to be such units in future because it obviously go against the spirit of HDB. It is an execution error. They left it too much to free market which like I keep emphasizing, is very efficient but NOT EFFECTIVE in pursuit of greater goals

ya.. totally agree.. its very much underpriced.. if you compare it with the surrounding condos, its very much underpriced in terms of PSF.

the setback: got to wait 10 years to sell at condo price... but overall i think still very much a good investment