MBT says enough private housing for FTs & Sinkies woh!

Tue, Mar 09, 2010
my paper




Enough private housing for citizens and foreigners

BY Koh Hui Theng

CLOSE to 90 per cent of all private- property transactions last year involved Singaporeans, National Development Minister Mah Bow Tan said yesterday.

He cited this to debunk the perception that foreign buyers were pushing up private-housing demand, which Member of Parliament Liang Eng Hwa (Holland-Bukit Timah GRC) raised yesterday.


He added: 'There is ample supply of private housing in the pipeline to meet demand.' Similarly, most transactions of public housing involved Singaporeans, he added.

The Government does not intend to introduce more new measures to cool the property market for now, as measures taken in January had helped deter speculation, he said.

To free land to meet privatesector demand, the Government is moving several centrally-located agencies to Jurong, Kallang and Paya Lebar. For example, the Ministry of National Development and its statutory boards, Agri-food & Veterinary Authority and Building and Construction Authority, will sink roots at Jurong Gateway by 2015.

They will be joined by Ministry of Environment and Water Resources and its statutory boards, PUB and National Environment Agency.

The Workforce Development Agency will move to Paya Lebar Central, where its new Continuing Education and Training centre will be built by 2013.

The Government will tweak the reserve-list system, which makes available, if necessary, extra sites whose use is flexible, on top of sites already released.

It will cut the deposit for successful reserve-list site applicants from 5 to 3 per cent, and cap it at $5 million with immediate effect, to help developers with cash flow. It will also provide a larger supply and wider variety of sites in the reserve list
in the second half of the year.

It will also introduce a $250 million fund to co-fund construction companies' adoption of new technology and upgrading of workers' skills. This is to help the industry improve its current 0.7 per cent productivity growth ' half of Australia's and a third of Japan's.

who cares about private housing??

100K voters want public housing!!!

GMS should go Tampines and kick his ass...

I have a question pertaining to HDB ownership...

This is a tough question, and worth some thought.

1. Existing Owners of HDB flats who have bought their flats earlier, before the pricing hike, and influx of FTs;

Would these specific group of people be HAPPY with the idea that their Flat Value be dropped to lower than their purchased value.

In consideration of the future of younger generation who wanted to buy an affordable flat.

2. Current Buyers of HDB flats, who are purchasing the expensive flats at current market rates, during the pricing hike, and influx of FTs.

Would these specific group of people be HAPPY with the idea that their Flat Value dropped to 1/2 of their purchased value.

In consideration of the future of younger generation who wanted to buy an affordable flat.

Definition of affordability; 99% of working adult in SGP, with combined salary of SGD 3,000 before CPF. (On assumption that this is a family whose income do not increase over time for 15 years)

On assumption that the CPF OA could sustain their home loan for 15 years.

10% is for deposit, assuming no COV for maximum affordability.

3 room flats of area around 60 m square to 70 m square ( 1 living room, 2 small rooms, 1 small kitchenette, and 1 small toilet ) --> enough to raise a family of 2 parents and 2 children.

Employers pay about 12% for CPF, and employees around 20% for CPF, assuming OA is 80%. (Disregarding Medisave, and Special Account)

Cash outlay is at maximum = SGD 3,000 X 0.32 X 0.8 = SGD 768.

By reverse calculation, 2.5% HDB loan granted for maximum affordability.

Payment terms 15 years X 12 = 180 (n), INT = 2.5 / 12%, PMT= 768 FV = 0

PV = SGD 115,419

PV is 90% of the entire value of affordable home.

Total Price of today's affordable home = SGD 128,243.

Broadly speaking, today's affordable home should be priced around SGD 130,000.

Proposal;

Build more 60 to 70 m square apartments for young couples to get a head start in life...

Do not emphasize on building 4 room and 5 room flats which are obviously causing financial burdens to families...

My question to the HDB is;

Why have HDB stopped building 3 room flats? Isn't there a demand for this?

Just an idea, and I hope someone could advise me on this.

Pertaining to the above report from Mr. Marlboro Tan, could he answer the question on why affordable 3 room flats are no longer being built, however, the focus was placed on Private Housing, what happened to the affordable HDB policies?