HDB land cost issue still vexes

[yeokiwi]

indeed, it should be the government's aim to act on behalf of all citizen, presumably for the benefit of all of them. if the land were to be sold to private buyers, i will agree that it should not be sold cheaper than its market value. but since we're talking about land for public consumption -- and everybody is able to participate because it is a designated public good -- why can't the land be priced lower for everyone who is a buyer of public housing? nobody will be shortchanged in the process.

a fixed discount to the market price of land for public housing can be used so that the people who buy flats in sengkang will not be shortchanged if he didn't manage to buy one at duxton.

there is also the question of whether valuation policy is sensible. the current valuation policy allows valuation and prices to chase each other endlessly, exposing public housing land prices to private market forces, and vice versa. if this isn't the case and they didn't change the policy during the 80s, we wouldn't have this problem of 'affordable housing' today.

The resale HDB market is making the situation tricky. It is rather easy for gov to lower the valuation of the land to achieve a lower HDB selling price but it will, at the same time, cause the resale flats to drop in value.

With over 80% of the population staying in HDB, significant number of voters were not be very happy to see their properties going into negative equity.

It is trued that the policy of using "market subsidy" has caused the current vicious cycle of rising resale price and new unit price. But, is it a viable path to change the policy now?

The solution to the current situation must take into account of the resale units and new units. Most of the current opposition policies are targeting at reducing the price of the new units but they must realise that many voters are current owners of HDB flats. I do not think any HDB owner will be very happy to see their flats being devaluated due to a need to provide affordable housing.

[flinger]

The resale HDB market is making the situation tricky. It is rather easy for gov to lower the valuation of the land to achieve a lower HDB selling price but it will, at the same time, cause the resale flats to drop in value.

With over 80% of the population staying in HDB, significant number of voters were not be very happy to see their properties going into negative equity.

It is trued that the policy of using "market subsidy" has caused the current vicious cycle of rising resale price and new unit price. But, is it a viable path to change the policy now?

The solution to the current situation must take into account of the resale units and new units. Most of the current opposition policies are targeting at reducing the price of the new units but they must realise that many voters are current owners of HDB flats. I do not think any HDB owner will be very happy to see their flats being devaluated due to a need to provide affordable housing.

This is the problem that the current policy has created . MBT however does not want to acknowledge that this is a problem, which irks me.

I agree that any solution should look at both parties , new and resale flats. A better system that helps the citizen have a roof over their head and have secure home.

Anyone who wants a fancy home should either do it through renovation of their apartment or through private homes. Maybe have different types of condos that cater for the different aspirations.

But the key point is the policy and ministers lack empathy to understand and develop policies for citizen instead of a business....

I do agree that is a hard thing, but that's why they are getting million dollar salaries ain't it ? or maybe I am wrong?

[karlmarx]

The resale HDB market is making the situation tricky. It is rather easy for gov to lower the valuation of the land to achieve a lower HDB selling price but it will, at the same time, cause the resale flats to drop in value.

With over 80% of the population staying in HDB, significant number of voters were not be very happy to see their properties going into negative equity.

It is trued that the policy of using "market subsidy" has caused the current vicious cycle of rising resale price and new unit price. But, is it a viable path to change the policy now?

The solution to the current situation must take into account of the resale units and new units. Most of the current opposition policies are targeting at reducing the price of the new units but they must realise that many voters are current owners of HDB flats. I do not think any HDB owner will be very happy to see their flats being devaluated due to a need to provide affordable housing.

You are right, given that the majority of singaporeans own property, and some own more than one, it is safe to assume that none of them will want their asset to depreciate. this makes any reversal of policy an uphill task. i see this as a clever ploy by the government to control its citizens, by holding their most prized asset hostage.

given the circumstances, property prices only have one way to go -- up. the government controls the both levers of supply (land sales, bto) and demand (foreigners) so when they say they want your asset to appreciate, they can. this makes the market somewhat artificial. and sharp corrections may occur when such market interventions are removed.

this can happen in several ways. if another flu epidemic strikes, or if opposition in parliament manages to reverse the FT policy,a good chunk of properties may be dumped on the market. or if opposition in parliament manages to secure a substantial increase in supply of new flats, markets will also be depressed.

if you wish for properties to continue bubbling beyond fundamentals, the incumbent is your choice. but black swan events beyond the control of governments or voters, are risks not to be ignored.

[Jon-san]

This is the problem that the current policy has created . MBT however does not want to acknowledge that this is a problem, which irks me.
I agree that any solution should look at both parties , new and resale flats. A better system that helps the citizen have a roof over their head and have secure home.
Anyone who wants a fancy home should either do it through renovation of their apartment or through private homes. Maybe have different types of condos that cater for the different aspirations.
But the key point is the policy and ministers lack empathy to understand and develop policies for citizen instead of a business....
I do agree that is a hard thing, but that's why they are getting million dollar salaries ain't it ? or maybe I am wrong?

Agreed with flinger in this case completely. Our ministers are supposed to be the elite thinkers. But at the same time, they also need to be connected to the ground. They claim to be, but how can they be, when they constantly deny that there is a problem?