In the 60th HDB build flat basically is to provide the basic needs of the citizens. Prices at that time are very reasonable with a 3 rooms flat causing only $8K. HDB had done excellent jobs in providing a roof over the citizens at that time.
As Singapore become developed and the housing need for the young generation change, price of the HDB flat had increased as expected over the years.
Price of HDB flat had increased at tremendous speed for the past 2 years by at least 40% on average. However, the salary increase had either been freeze or by a sum less than 3% pa for the past 2 years due to the financial crisis.
The majority of the young married couples or parents are very worry as the HDB flat may be beyond their reach.
Average Income young married couples have only two options
1) To purchase directly from HDB as it is cheaper than to purchase from the open market. HDB had claimed that it priced its new flat 30% lower compare to open market prices. Flat in the open market had increase by 40% over a period of 2 years. So overall the new flat should also have increased by about 40%. No forgetting the waiting time for a new flat (BTO) is average 3 years, excluding balloting time wasted for BTO project.
Example: A friend of mind brought a new 4 room flat 2.5 years ago at pungol priced $198k. Now a new 4 room flat cost average $268k at the same location. Increase of 35% in price.
2) To purchase from the open market is of a high price. A 4 room flat at the non-mature area like Sengkang could easily cost over $350k. Noted that the price increase is about 40% over a period of 2 years. Not forgetting that salary increase is less than 3% pa or freeze for some trade due to the global economic crisis.
It is therefore crucial for the government (MND) and HDB to look into the basic need of all Singaporean. The housing need is the basic structure for the formation of new family which will encourage younger Singaporeans to get married and have more babies. With the increase in the standard of living, plus the great increase in housing price, the young will be discourage having more babies due to affordability.
There must be a balance between housing needs, children education needs, retirement needs as well as medical needs.
All in one, Housing need is still the basic and essential criteria to form a family.
HDB should consider the following proposal to control the price of HDB flat:
1) Building time for new HDB flat (BTO) should be reduced to about 2 years including the balloting time for BTO flat.
2) Propose to have Queue system so that all citizens will have a fair chance to select their choice flat. Have a greater differentiate in prices between high and low floor units so as to cater to all group of different financial capability. Unit with better facing should be price higher. In this case all units should be taken up during selection.
3) All application will be given only one chance to select a new flat when queue is due. Should have a bar period of 1 years for these who turn down the offer to select a flat. These who give up their chance will have to re-apply after 1 year. This will reflect the true demand of new flat.
4) The minimum occupation period should be raise to 5 years for PR whom buys HDB flat from open market. This will prevent property speculation by the PR.
5) PR who sells the HDB flat should be subject to 30% profit tax when they sell their unit. This will generate some income for the government to help the needy family.
6) PR should be allows to buy from the open market once only.
7) A $30K citizenship deposit should be imposed for PR buying HDB flat. The deposit will be refund once the PR convert to citizen within 3 years or else the deposit will be forfeited. This will encourage citizenship so as to increase our population.
8) HDB should put up more flat for sale under the BTO scheme. Currently each BTO had subscription ratio of 1:6 to 1:10. This is an indication of strong demand. Propose to have 2 BTO offer each month with 2000 unit for selection.
Do hope that the government and the respective organizations can look into this issue seriously for the benefit of all our citizens. Do share our problems and sorrows so as to unite together as Singaporeans. Please gives us listening ears and shows some compassion and loving kindness for the all the citizens especially the working class.
A big thank for your time to read this article and let hope for a better day for all Singaporean.