Rental rates depend on supply, demand

[opmi]

Singapore inc stats boards mentality go for the easy way out - just make
money.

[specuvestor]

There is no way the G can tweak the COE policy to please everyone and keep the policy objective to limit the car population. No matter what, car prices will be high. The cure is to improve the public transport system to the point where its natural to not own a car. New York city is a prime example where even high wage workers take the subway to work.

As for HDB. Let's take a thought experiment. Lets assume the G builds and sells HDB flats at construction cost + admin cost. Ignoring the vested interest of home owners who already own flats, what are the possible consequences?

1. Almost everyone and his cat will rush to buy a flat - whether or not they need it. Result : over building and a construction bubble (don't believe it? Look at China which achieved the same thing with cheap credit). Either that, or extremely long queues (think decades) to wait for a flat. Also, everyone will want to buy a executive flat - forget 3/4 roomers! Where's the land coming from?

2. This largesse does not benefit people who are (A) too poor even to buy the lower cost flats, (B) people who still prefer to stay with their 3 gen families. Basically the G would be effectively giving money from one side of society to the other.

3. HDB sells flats in Marina South and Sengkang. All at the same price? What to do? Ballot ? haha. 4D huat ah.

4. You want to sell your flat and move to another place due to work. At what price? The G is outbidding you! Of course, maybe you were lucky enough and got a flat in a good location. Then see (3).

5.The HDB housing stock explodes. It crowds out offices/factories/parks etc. Everywhere you see is HDB. Lots of empty flats coz people buy as its cheap, but they prefer to stay in family units. Rentals plunge.

Summary, the G treads a middle ground and sells at Market minus what they think is a suitable subsidy to cater to economic efficiency and social good. They heavily subsidize 3 roomers and families too poor to buy and have to rent. Everyone else has to decide how to maximize their housing utility and purchase housing suitable for their budget and needs.

Generally agree but 1) has already been done which is why 80% of Singaporeans stay in HDB. Point u missed out is that you can get this good deal only twice.

End of day the problem is the mentality that it is an asset when it is actually prepaid expense. It is not HDB nor govt job to enhance asset, which the previous PM seemed to be doing to win votes, but to provide shelter and commitment to the populace to the long term good of the nation.

It is one thing that the population thinks it is an asset, but quite another when policy making is based on that premise. For example old estate upgrading is a great idea to sustain our perceived standard of living, but quite another when it is construe as one that increases your estate value and so you have to vote accordingly.

I am very sore that we are still paying the cost of this failed Singapore Inc ideology.