Mabroky: PHoles Not Priced By Me!

[makapaaa]

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Flat valuations not done by HDB
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to the letter, 'Queries on HDB Valuation Scheme' published on Aug 12.

The writer attributed the increase in resale prices of HDB flats to a new method of valuation implemented by the HDB that incorporates the cash-over-valuation (COV) amount. This is not correct, as there has been no change in the method of valuation recently.
We wish to clarify that valuations of resale HDB flats are carried out by professional private valuers, and not by HDB. The private valuers on the panel are licensed by Inland Revenue Authority of Singapore and are members of the Singapore Institute of Surveyors and Valuers.
Buyers and sellers of resale flats are free to negotiate and agree between themselves the selling prices. Information provided by HDB on the median COV for each flat type in each town serves to help them make an informed decision. As stated in HDB's press release of July 25, about 10 per cent of the resale transactions registered in the second quarter this year were done at or below valuation, that is with no COV. Gopal Singh
Head (Valuation & Alienation)
Housing & Development Board

 

[makapaaa]

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>HDB flats: No new valuation method
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->WE REFER to Ms Christina Heng's letter, 'Queries on HDB valuation scheme' (Aug 12).
The methods adopted by the valuation profession are applicable to all properties, be it HDB flats or private properties. There is no new valuation method used.
To refresh our earlier reply on June 28 in response to Mr Patrick Tan's query on 'What determines market value of property', we stated that the market value of a property is determined on the basis of a willing buyer and a willing seller, with both parties acting with knowledge, prudence and without compulsion in an arm's-length transaction.
For homogeneous properties such as HDB flats, the common valuation method adopted is the direct comparison approach. This approach is similar to that used by a potential buyer when considering the purchase of a flat. He would look at the location, consider the age, size, design, height and other important characteristics of the flat and compare the prices paid for comparable flats in the locality.
The final selling price of a property is dependent on the demand and supply of a property and the negotiation between the buyer and seller. Some buyers may pay a premium for a flat for personal reasons. The cash top-up is a legitimate part of the resale market price. It is the willing buyer and seller that determines the final price and this final price as considered by the market forces can be above or below the valuation. Janet Han (Ms)
Secretariat
Singapore Institute of Surveyors and Valuers

 

[makapaaa]

Posted on December 15, 2007 by aldurvale
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I REFER to the letter, ‘Since when did resale prices decide cost of HDB flat?’ (BT, Nov 30) by Lu Keehong.
The prices of new HDB flats are based on the market prices of resale HDB flats, and not their costs of construction. In order to provide affordable housing to Singaporean families, new HDB flats are priced below their equivalent market values. In this way, new flat buyers can enjoy a substantial subsidy. This point has been explained in Parliament and reported in the media on many occasions.
As resale prices move up, so do new flat prices. Similarly, when resale prices move down, as happened during the property market downturn in recent years, the prices of new HDB flats were also reduced significantly.
By selling new flats with a market subsidy, HDB has been unable to recover the development cost of new flats. HDB has incurred an average deficit of $457 million a year in its home ownership programme in the last five years. These figures are reported in HDB’s audited financial statements, which are available to the public.
HDB periodically reviews its building programme, and makes adjustments to respond to and anticipate changing market conditions. With the increased demand for new HDB flats, HDB is gradually stepping up its building programme to ensure a steady flow of public housing supply to meet the needs of present and future generations of Singaporean families.​

Kee Lay Cheng (Ms)
Deputy Director (Marketing & Projects)
For Director (Estate Administration & Property)
Housing & Development Board​

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[chinkangkor]

By selling new flats with a market subsidy, HDB has been unable to recover the development cost of new flats. HDB has incurred an average deficit of $457 million a year in its home ownership programme in the last five years. These figures are reported in HDB’s audited financial statements, which are available to the public.

A small deficit in the books of HDB but a huge surplus in the books of SLA.

Did HDB reveal the cost of land it purchases from SLA?

 

[zhihau]

... The prices of new HDB flats are based on the market prices of resale HDB flats, and not their costs of construction. In order to provide affordable housing to Singaporean families, new HDB flats are priced below their equivalent market values. In this way, new flat buyers can enjoy a substantial subsidy ...

the prices of the new HDB are not based on construction costs so that new buyers can enjoy substantial subsidy? as far as i can see: the HDB gets the land at a price (debit), constructs them (debit), rents them out at a 99 year lease (credit).

when folks wants to stop living in the pigeon hole before the lease is up, the HDB takes it back (debit). the amount the HDB pays to takes back pigeon holes should rightfully be based on the amount listed on the lease. when folks buy resale pigeon holes, it is a deal between the two, no issue with HDB.

when the folks who bought the resale pigeon hole and have decided to stop living in that pigeon hole before its lease it up, the HDB takes it back (debit). the amount the HDB pays to take back that pigeon hole should once again rightfully be based on the amount listed on the lease of the original pigeon hole and not at the market price. it is public housing, not private housing!

whoever allowed the HDB to take back the leased pigeon holes at a higher price than that of the amount stated in the lease? and what has the prices of the resale prices of the HDB pigeon holes got to do with the HDB's new pigeon holes pricing? utter bullocks!

the HDB was set up to provide the Republic with affordable housing, a Government arm taken charge of providing her Citizens with a place to stay, and that's the way it should be. if the construction costs and land costs are not high, why is the pricing of the new pigeon holes so high?

and as of the subsidy, as long as the prices of the new pigeon holes are pegged at just about 10~15% of its total costs, even a 5% subsidy is good enough.

 

[american]

Nice kitty