HDB to increase supply of flats to soothe frayed nerves
October 1st, 2009 | 
Author: From our Correspondent
Faced with a massive revolt from the electorate over the rising prices of HDB flats which is exacerbated by the relentless influx of foreigners who become PRs in recent years, HDB finally succumbs to public pressure by increasing the supply of new flats.
National Development Minister Mah Bow Tan said on Thursday that the board will ramp up its supply of build-to-order (BTO) flats from 8,000 to 9,000 units this year, and will make available 2,132 completed flats across the island for sale with immediate effect. This means more than 7,000 flats will be on sale for the next three months.
The sale of completed flats, left from earlier BTO exercises, SERS and repurchased flats, will come under a new scheme called Sale of Balance Flats (SBF) to simplify the flat application process, and to provide buyers with a wider choice of flats across a range of locations in one exercise, said the HDB on Thursday.
Mr Mah also reassured Singaporeans that the Government is monitoring the situation closely and will ensure that homes are available and affordable. However, he admitted that “flash estimates for the third quarter showed that HDB resale flat prices rose by 3.2 per cent.”
Mah’s sudden U-turn is in stark contrast to a speech made earlier in parliament in which he asserted in no uncertain terms that HDB flats remain affordable to the masses at current prices and call buyers to be “realistic” in their expectations instead.
HDB has been at the receiving end of a torrent of criticisms by Singaporeans via the Straits Times Forum and internet discussion chatrooms that it is not doing enough to protect first-time home-buyers with even the usually docile state media joining in the chorus to call for HDB to adhere to its original mission of ensuring affordable homes for all Singaporeans.
Despite the standard reply from HDB directors and officials that HDB flats are affordable because prices still fall below an unknown international benchmark of affordability, many Singaporeans remain skeptical and unconvinced.
Some even accused the government of profiteering from the construction and sale of HDB flats.
A crude estimate made by Finance Consultant Mr Leong Sze Hian of the profits made by HDB has been circulating around cyberspace:
“Since there will be 864 HDB flats, the average cost per flat, inclusive of communal amenities, site works and contingency works, is about $120,602 ($104.2 million divided by 864 flats).
With the latest HDB new 4-room flats at Punggol (Punggol Residences BTO) selling at an average price of $293,000 (price range of $264,000 to $322,000 divided by 2), does it mean that the HDB stands to make a profit of about $172,398 per flat, or a profit margin of about 143 per cent?”
[Source: Hardwarezone]
With the elections looming, the government cannot afford to alienate and peeve off voters especially young couples who are struggling to purchase a flat of their own which explains its sudden capitulation.
Singaporeans may well remember that Progress Package which was given on the eve of the 2006 elections followed by promises that prices would not be increased.
A few months after Singaporeans gave the ruling party an “overwhelming mandate”, GST was raised to seven per cent together with hikes in public transport and electricity.
Related articles:
>> Drawbacks of using STIR as a bench mark to assess housing affordability
>> Part 1: Singaporeans do not own their HDB flats
>> Part 2: HDB flats are unaffordable to most Singaporeans
>> Part 3: Rising prices of HDB flats does not create wealth
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Posted in Editorial
still?
as single singaporeans aged 35 and above, we still can’t buy new flat. we are still being marginalised! we are being treated much worst than foreigners!!!
all the signs are getting clearer each day. Election could be this December which is after the APEC meeting and as usual during school holidays.
Gahment listening to the ground ranting???
Signs that The elections is at the doorsteps…probably still printing serial numbers on the voting slip.
Remember This : After the sweets comes the whip.
if we are giving donation to temasekreview thru paypal, will our identity be exposed?
though it seems like our society is opening up, i m worried that we will be tracked down for helping those platforms which voiced out differently. like someone here said “whips after sweets”.
This is just another smoke screen.
They seemed to want to make some last minute money.
Here is the link of the new “sales of remaining flats”.
http://www.hdb.gov.sg/fi10/fi10201p.nsf/WPDis/Buying%20A%20New%20HDB%20Flat%20(e-Sales)Flats%20On%20Offer?OpenDocument
Some 5-rooms are going as high as nearly S$600k, and 4-rooms is reaching S$500k
This is terrible and getting out of hand.
ChaoCheeseBuy, you are right.
Election will be after APEC meeting during school holidays and schools will be the voting venues. But let us NOT get duped again..the JOB CREDIT scheme will be promised as continuiing “until further notice” and then after the election..you will get the biggest “BOOMZ” ever, even Ris Low’s ingenuity will have not thought about, right under your slumber beds.
Mark my omens of evil scheming in the waiting.
Oh so this where we can see HDB playing with the figures of demand & supply? Suddenly increasing to 9000 with immediate effect?
That would also mean that HDB is also able to control prices with immediate effect but decided to turn a blind eye and let “market forces” run rampant?
Can we Singaporeans question the moral authority of HDB and why it has delibrately move away from it’s original mission statement of providing cheap, quality units at COST Prices, like in the old times. With respect to LKY who constantly talks about the good old times, so why not HDB adopt it’s root principle?
HDB is not a private company but is certainly behaving very much like one.
There are only sad news for Singaporeans these days …
By the way, is TR being “fixed” as well? Your website seems quite weird lately. Sometimes cannot access, sometimes the display is all screwed up.
My Dear single Singapore.
U’re just threating yourself,
There are much more people giving donation thru PayPal.
I myself has been giving couple of times.
It no corruption.
Giving money on coming Election is corruption.Vote buying.
Stand Firm, No Kadan Kaboh!
Dear Minister MBT
Thank you for making the effort to increase the supply of HDB apartments.
Here’s a short feedback for you :
It is a bit too little and definitely too late, if I may say so.
The new total supply announced today is still NOT enough to fill the demands of Singapore Singaporeans looking for ‘affordable’ housing because most of the resale apartments (the “affordable” alternative) on offer are snapped up by the PRs.
They are the ones who can afford to pay for the high COVs…
In fact, they have been dropping leaflets in letterboxes informing HDB owners that they will be more than happy to pay HIGHER COVs for a resale HDB apartment.
Most Singaporeans, unlike you and the PRs, are broke and short of cash to pay for the COVs because of our stagnated salaries and the high cost of living in Singapore.
So, if you really want to help release the pressure off Singaporeans seeking a roof over their heads, you will need to do better.
However, with your $$$ million salary and the good life you are leading, I doubt you will ever understand the frustations and feeling of hoplessness of young Singaporeans to ever get a decent, affordable home since you took office as the Minister-in-charge of HDB.
i don’t think the supply is enough. they should be bolder and flood the market. to prick a bubble,you can’t take gradual steps which will only dampen spirits temporarily but in the end when ppl see prices resuming its climb, the madness carry on.
e.g. greenspan lifting of interest rates slowly 0.25% during those bubble years of 2004 to 2007 did not prick the US housing bubble
sidetrack: lim swee say hoped that job credit scheme will be extended and an economist close to govt ask for 6 months extension. looks like the govt will buy time to hold elections then take away job credit scheme after election. so, any increase in unemployment and followed by HDB bubble bursting will only take place after the election
to btan,
relax,its only TR changing server. i also encountered what you said
Six months extension for job credit? Come on, we all know the ploy.
Low Thiang Kia is absolutely right in Parliament during the last Budget debate. Instead of working out something concrete of durable benefit, the Government is throwing money in keeping SOME in TEMPORARY employment (and hurriedly chasing PMETs to downgrade) when there is NO DEMAND – usual magic show again.
It is a circus which the ringmaster will disappear when the election is over. It is your money in reserves to buy politicians’ time to spin more tales and hookwink your votes.
If there is demand, there won’t be need for any extension of Job Credit – the economy will take care of itself in sustaining employment. More cheaper foreigners will be hired to replace the costly Singaporeans (not longer affordable to keep on job credit lifeboat) airlifted from abroad cheerfully sold to us as FRESH NEW foreign talent to add to our stock of HUMAN CAPITAL.
Jokes have never been funnier.
what about those desperate first-timers who have already commited to pay the ridiculously high cov the last 3 months?
The price of repurchased or unsold flats on offer for SBF are still high.
Mr MBT, speaking so confidently that HDB flat prices are stable with fluctuations of plus minus 1% being no big deal. With the last quarter flash estimates of an increase of 3.2%, he just slapped himself in his face.
HDB should build 50,000 flats.
9000 flats is far below.
How can MBT ( one of the world top minister income earner ) fail to apprehend the logic? Why are we still paying world class ministers’ salaries?
Why is he saying one thing but doing another? Hypocrite?
Keeps harping on how affordable flats are in Singapore but releases enormous amount of new flats that will bring the prices down.
Are we really that dumb to listen to his drivel?
‘Mr Mah also reassured Singaporeans that the Government is monitoring the situation closely and will ensure that homes are available and affordable. ‘
Is it just me or others agree too that his statement is SIMPLY UNBELIEVABLE?