Tan Kin Lian - Perspectives Give more HDB housing choices
I want to give my views about providing more choices for families, especially to those families who need a bigger flat when they have more children.

The ideal situation is a ready supply of HDB flats that can be rented or bought to meet the housing needs of the people.

We have sufficient land and with high rise apartments, it is possible to provide adequate housing to meet the needs of the people. It is not difficult for the government to build more flats.

The problem is the "profit incentive". Many people want to make money from speculating in property in the private market. In this situation, it is difficult to meet the speculative demand.

When the prices of housing are pegged to the median income, there is no incentive for people to speculate on these property. It is like a government bond that pays a modest rate of interest.

When the speculation is removed, it is possible for the government to build sufficient HDB flats to meet the needs of the people.

In some years, they may overbuild the flats, but the surplus flats will be taken up in a few years. In some years, the available flats may be insufficient to meet demand, e.g. caused by an unexpected inflow of foreigners. In this case, there will be a waiting list that can be cleared in one or two years. With modern technology, the new flats can be ready in one or two years.

If we move to a pricing model that removes the speculation in public housing, it is easier to manage and ensure that the supply meets the demand. It will also provide a wider choice to people who need a bigger flat for a bigger family. In some cases, they may have to wait for a year or two, but this waiting period is acceptable.

Tan Kin Lian

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