Did the government spend or made $28 billion from selling HDB flats?

I refer to the article “Housing in Singapore – The high life” (The Economist, Jul 8).

Govt spent $1.8b on HDB?

It states that “It is also a good deal for the state. In 2015-16 the treasury put aside S$1.8bn, or 2.4% of the national budget, for housing, which was enough to cover HDB’s annual deficit. (The agency itself had a budget of S$17bn; it benefits from government loans but also borrows from banks and the bond market.) The government says it has paid a little over S$28bn in grants to HDB since its founding in the 1960s.”

HDB paid $4.9b for land to the Govt? 

According to the HDB’s annual report 2015/2016 – it had capital expenditure (cash outflows) of $4.9 and $5.1 billion for land and buildings.

No breakdown of HDB prices into land & construction costs?

Despite questions in Parliament and newspaper forums over the years – Singaporeans have never been given the breakdown of HDB BTO prices into land and construction costs.

Land charged at market rates?

All we know is that land is paid for (to the government (Singapore Land Authority)) at market rates.

49% of HDB price is land costs?

Since the ratio of land to construction costs as indicated above is 49 : 51 per cent – let’s for the purpose of illustration assume that about 49 per cent of the HDB BTO prices are for land (owned by the government).

Govt made or spent $1.8b?

So, “the S$1.8bn, or 2.4% of the national budget, for housing, which was enough to cover HDB’s annual deficit” – may from a cashflow perspective – actually be kind of like a profit (estimate for the purpose of illustration) in selling HDB BTO flats (if land was not charged at market rates).

Any countries charge land for public housing at market rates?

After all, are there any countries in the world that charges land for public housing at market rates?

Govt spent or made $28b?

Similarly, and conceptually – does it mean that the HDB may have made about $28 billion (estimate for the purpose of illustration) since its founding?

“Asset enhancement” has been demolished?

As to “Handouts linked to housing are one reason Singapore manages to do without a conventional tax-funded pension scheme. The theory is that almost all Singaporeans will own apartments outright by the time they finish working, in addition to having savings of their own. Those willing to downsize upon retirement—or “right-size”, as the government likes to say—do best” – this “asset enhancement” may now be demolished by the recent remarks that the value of HDB flats will decline to zero at the end of the typical 99-year lease.

 

Leong Sze Hian

 

 

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14 Responses to “Did the government spend or made $28 billion from selling HDB flats?”

  • Amos humiliate L*L and PAP:

    The “grants” to HDB are more than offset by the massive profit made by Singapore Land Authority when it sells land to HDB at market price determined by the Government Valuer. This profit is not included in the budget unless SLA returns the cash to MOF which it does not because the Budget is already in surplus. Self-funding stat boards like SLA, CAAS, LTA, JTC, PSA together make billions annually and are holding billions more. The public sector uses cash instead of accrual accounting so the profits made by these agencies are not in the Budget.

    Want to know the truth? There is only one way to get it. REGIME CHANGE. Throw out the PAP at the next GE.

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  • Amos humiliate L*L and PAP:

    Amos humiliate L*L and PAP:
    The “grants” to HDB are more than offset by the massive profit made by Singapore Land Authority when it sells land to HDB at market price determined by the Government Valuer. This profit is not included in the budget unless SLA returns the cash to MOF which it does not because the Budget is already in surplus. Self-funding stat boards like SLA, CAAS, LTA, JTC, PSA together make billions annually and are holding billions more. The public sector uses cash instead of accrual accounting so the profits made by these agencies are not in the Budget.

    Want to know the truth? There is only one way to get it. REGIME CHANGE. Throw out the PAP at the next GE.

    Forgot to mention that the (cash) cost of land to SLA is ZERO. The Government never had to pay anything for State Land.

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  • PATRIOT of TEMESAK:

    A Liar told a BUNCH of Harvard Uni Profs that the Govt.Housing “LAND is PROVIDED FREE” all they pay is the brick & mortar

    If a person can LIE to a bunch of Harvard Profs….who can he NOT lie to besides God???

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  • MarBowling:

    We don’t Need a shortarse Bugger with 8A(rses) in his O Level Exam by the name of MarBok Tan to come up with his housing policy of pricing the sale of and resale of HDB flats based on his fiacking crap formula of using “market rate”. No wonder Lee Kayu considered him as his bluest-eye Boy helping to reap and rack in $billions and $billions of revenues for the Coverment when he was appointed as the Minister of MND! Earlier when he was appointed as the Minister of Transport, he also helped to reap and rack in $billions and $billions with his fiacking COE scheme of things! Uncle Leong is right. The Coverment has so far made $28 billions or MORE! Holee shit$$$$$$$$$$!

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  • Bobo:

    Quote: “If a person can LIE to a bunch of Harvard Profs….who can he NOT lie to besides God???”

    How about this: If a person can deny his father will, what and who can he not deny? He think himself a junzi, but to his siblings, he may be 伪君子 always 变脸 and 小气.

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  • 69:

    Knn 70%,the day U all bugger going to own $0 in 99 yrs is coming ,Sat night fever
    CpeeF not people money
    Bloody cb

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  • oxygen:

    HDB IS ANOTHER SCAM – sold BTOs and transfer part of the proceeds to Singapore Land Authority. That part of the money does NOT fall from the sky. It is paid for by the buyers of BTOs flats BUT NOTHING IN THE LEASE CONTRACT mentioned of land ownership shared among owners of the same block of apartments.

    The contract is therefore misleading and illegal of construct. If the land is sold and owned by dwellers/owners of BTOs – even if the flats sold to buyers expired at 99 year lease, IT CAN’T LEGALLY SQUAT on the land owned by the prior buyers of the block of flats. It has to be KNOCKED DOWN instead of reverting back to HDB which can then, at its sole discretion, to sold again to new buyers WHILE CONTINUE TO FORFEIT silently the land rightfully owned by former HDB buyers.

    In other words, it is a SCAM ON TOP OF ANOTHER SCAM to give it an appearance of legal legitimacy. PAPpy MPs in the political zoo of course keeps quiet. They can afford to own private property and this insidious confiscation of property by HDB does NOT impact on them.

    WHY IS THE 70% VOTERS THIS STUPID TO IMPOSSIBILITY OF INFINITY?

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  • 70:

    Why you all questioning our guermen so much?
    No job to do is it?

    We base on T.R.U.S.T

    You think we bother to know how much loss or profit in exact ?

    Why waste time?

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  • opposition dude:

    It will be interesting when those flats built in the 60s in Queenstown and Toa Payoh hit 50 years of age. Won’t be long now. And give it another 10 years and those built in the 70s reach the half century mark.

    Even if the occupants outlive the flat one wonders about the price they paid and what they will get whn it’s time to demolish the block.

    I can imagine a few hundred blocks built in the 1980s 99 years later. What an interesting problem to have by then.

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  • Lee Gan Yew:

    Sir Leong

    We are subjects of Asian authoritarianism.
    You think we want to know the answers?

    You are a joker!

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  • Bebe:

    Legally, they did not scam you mah; you signed on every page of the lease.
    Where is the scam?

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  • Kiss Whore Malu Barnie:

    Lee Gan Yew:
    Sir Leong

    We are subjects of Asian authoritarianism.
    You think we want to know the answers?

    You are a joker!

    My expert analysis on the mental of singaporeans is THEY JUST DUN BOTHER TO KNOW. Its something they have not understood why it is important to know.

    Everything to them is Boh Bian.

    SMLJ also Boh Bian.
    50 years of evidence proved this.

    My b*t*h C.Cheng Chee also agree.

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  • Who Audit GIC?:

    GIC made the claim of certain number of returns.

    Question. Who audited these claims?
    Is it an independent body respected and trusted by all?

    And then
    who audited the auditor?

    I rest my case.

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  • PATRIOT of TEMESAK:

    Bobo:
    Quote: “If a person can LIE to a bunch of Harvard Profs….who can he NOT lie to besides God???”

    How about this: If a person can deny his father will, what and who can he not deny? He think himself a junzi, but to his siblings, he may be 伪君子 always 变脸 and 小气.

    “DITTO”

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