Singapore
How to solve the HDB problem
Prof Tay Kheng Soon said that the HDB policy has not working well and that HDB prices have become unaffordable for many young people. This has consequences for the future of the economy and the development of an enterprising people.
https://www.theonlinecitizen.com/2023/04/10/professor-tay-kheng-soon-highlights-selling-of-hdbs-as-assets-as-singapores-greatest-housing-mistake/
The problem started when the government wanted to make the HDB flats an investment asset, and the owners want to see this asset appreciate.
This goal is difficult to achieve as the HDB flat, being a 99 year leasehold, will start to lose value when half of the lease has expired.
I have a solution to this problem.
It is all right to continue the current HDB policy (as it is difficult to reverse the policy), but the government should set the prices of a 3 room HDB flat in a suburban location as a multiple of the median income, rather than let it depend on market supply and demand.
The price for bigger or smaller flats and prime locations can be adjusted accordingly.
In case of high demand, the government can build more flats. In the meantime, the available flats can be distributed by ballot or by some other fair and accepted criteria.
If there is low demand, the government can keep the flats vacant for a few years until the demand returns.
This approach will still make the HDB flat a good asset for the long term, but the prices are more stable and affordable, relative to the average income.
Tan Kin Lian
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1. Past 25 years the nos. of BTOs built were far lesser than the nos. of each new corhort of families. A
supply shortage automatically driven up demand & price.
2. Similarly, a limited release of land parcels for private developers drove price if up land sale.
Consequently, the deception pof property "price appreciation".
Long-term visitors passes were freely given to foreigners to "play the property investment" games.
3. In order to stem the effect of drastic fall in BTO price near to the
Philip Soh 11 Apr 2023