Why you see Minister Mah no up? Becoming PM of Sg is not like getting job for SIA girl - there is
NO minimum height requirement !!!
I hope this gives GMS some "firepower" if he wants to hoot MBT.
First of all, the kind of policies, pricing, schemes that applies for HDB flats 20,30 yrs ago no longer applies in modern day.
Valuation of HDB flats is flawed. Eg, a 4rm flat which is renovated and located on the 3rd flr gets a valuation of $400K. Transacted at COV at $450K. Another flat on the 3rd flr 2 mths later wants to sell. Renovation done 20yrs ago, but valuation is $430K, because the valuers based their valuation on transacted pricing without finding out whether the prev transacted is renovated or non-renovated. They base their valuation that since last transacted is this price, next valuation should be slightly higher.
This kind of scenario, pricing will never come down. He failed to comprehend that increased pricing stemming from demand is 1 issue but the other issue is ever increasing valuation which never seems to stop.
2. Valuation has to increase to make people take longer or higher loans.
Before I go on,
Simple analogy, when you have a pte property, you go to a bank, The same property will get 2 valuations from the bank.
Seller's valuation and Buyer's valuation
Seller bring his property to bank to value, Bank gives them a lower valuation to get them to refinance.
Buyer bring the same property to bank to value, Bank gives them a higher valuation so that buyer can borrow more.
Back to HDB, the only loans is HDB loans and bank loans. HDB peg at 2.6% and this interest cannot go up if not it would be seen as "profiteering". Interest cannot float so only with increasing valuation and pricing is the only way for people to loan more money from HDB.
The escalation of pricing has made many indulge in huge loans and I think this issue is going to be a big issue in future. Not for the middle income but for those in the lower income bracket.
With all I had said, this HDB issue is not the main issue to bring down MBT in Tampines. GMS if he is going for Tampines, need to do beyond just talking about ever increasing HDB pricing. Previously I stayed in this GRC and I can say that community links in this place is very strong. Lots of facilities are built, walkways, cycling paths (I think its one of the 1st estate to implement a cycling/walk pathway). Schools, Hubs, Shopping. Another thing is if anyone notice carefully, the valuation of HDB flats in Tampines is not as high as other mature estates. Maybe they have the groundwork done to prevent people from attacking this issue as eventually, still need the residents of tampines to vote.
