Latest HDB launches show Khaw hasn’t kept his promise

Khaw promises to bring HDB BTO’s Afforability Ratio down to 4

In the 1970′s, a graduate’s starting pay was around $1,000 per month. Then, in Marine Parade HDB estate, the price of a new 3-room, 4-room and 5-room flat was $17,000, $20,000 and $35,000 respectively. A young graduate could easily afford a 5-room flat at a Price-to-Annual Income Ratio, also known as the Affordability Ratio (AR), of slightly under 3 i.e. 3 years of annual income to match the price of the house.

Even households earning $500 a month could easily afford a 3-room flat priced at $17,000 (AR under 3).

The World Bank considers a ratio of 5 or under as affordable for local residents, while the United Nations has set the bar lower, at 3 (see Link). In any case, anything above 5 is considered unaffordable by both the World Bank and the United Nations.

By 1990, the average price of a new 5-room flat was $70,000 and a young graduate earned about $2,000 a month. The AR then was still under 3.

After Khaw Boon Wan took over the job of National Development Minister from Mah Bow Tan, he told Parliament that more would be done to reduce BTO flat prices relative to income, so as to reduce the financial burden of housing on the young [Link]:....http://www.tremeritus.com/2014/11/30/latest-hdb-launches-show-khaw-hasnt-kept-his-promise/

The difference between the 70s and today is that in the good old days, only the top 2% of each cohort would get a place in Uni. There were two universities Nanyang and SU. If your A levels weren't good enough, that was it. You only had one shot at glory.

Nowadays even clowns and dimwits get degrees. With such a large supply of graduates, it goes without saying that their starting salaries relative to the price of housing has fallen considerably.

Khaw is doing a fantastic job. It is the quality of the graduates that has gone south.

If their starting salaries have fallen relative to the starting salaries of 70s grads,shouldn't it make sense the price of public housing fall too accounting for inflation.

Leongsam said:

The difference between the 70s and today is that in the good old days, only the top 2% of each cohort would get a place in Uni. There were two universities Nanyang and SU. If your A levels weren't good enough, that was it. You only had one shot at glory.

Nowadays even clowns and dimwits get degrees. With such a large supply of graduates, it goes without saying that their starting salaries relative to the price of housing has fallen considerably.

Khaw is doing a fantastic job. It is the quality of the graduates that has gone south.

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frenchbriefs said:

If their starting salaries have fallen relative to the starting salaries of 70s grads,shouldn't it make sense the price of public housing fall too accounting for inflation.

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No because there is demand from people from all walks of life including non grads who now make good money.

Using a graduate's starting salary is no longer a consistent benchmark

So u saying non grads didn't make good money in the past,if non grads are making good money now why are they restricting themselves to the bracket of public housing.which leads us to one big circle,cost of housing is rising tremendously now and becoming unaffordable.

Leongsam said:

No because there is demand from people from all walks of life including non grads who now make good money.

Using a graduate's starting salary is no longer a consistent benchmark

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Leongsam said:

Khaw is doing a fantastic job. It is the quality of the graduates that has gone south.

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halo sam khor mai luan luan gong lah lee indirect freekick goal gong ah khaw si clown

the best thing $8 cow has done was go all out to defend crooks like tt dulan and the Npark director. birds of a feather certainly breathe through the same nostril hole.

The 60% still overlook n condone the immoral n corrupt MIW!
The Taiwan voters punished devastatingly the kmt in local elections for kmt'S
Incompetency n collusion between govt n businesses.

Leongsam said:

The difference between the 70s and today is that in the good old days, only the top 2% of each cohort would get a place in Uni. There were two universities Nanyang and SU. If your A levels weren't good enough, that was it. You only had one shot at glory.

Nowadays even clowns and dimwits get degrees. With such a large supply of graduates, it goes without saying that their starting salaries relative to the price of housing has fallen considerably.

Khaw is doing a fantastic job. It is the quality of the graduates that has gone south.

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It may be the case that the University is somewhat devalued but there is no denying that the HDB prices have gone through the proverbial roof and has therefore pushed up the AR.

Also do not forget that right now,,most gahmens want inflation as it makes their tax revenues look better

batman1 said:

The 60% still overlook n condone the immoral n corrupt MIW!
The Taiwan voters punished devastatingly the kmt in local elections for kmt'S
Incompetency n collusion between govt n businesses.

Click to expand...

Eh.....not too sure if it is a good thing Taiwan going back to green....remember Chen shui Bian....the last green president .....

frenchbriefs said:

So u saying non grads didn't make good money in the past,if non grads are making good money now why are they restricting themselves to the bracket of public housing.which leads us to one big circle,cost of housing is rising tremendously now and becoming unaffordable.

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Society has changed considerably over the last half a century and there are far more opportunities for non grads to earn a good living.

This was not the case in the 60s and 70s.