HDB roped in by PAP to support rental/property market

I refer to “HDB lowers cap on number of tenants allowed in flats”. ST

Last year, due to external factors beyond PAP’s control, non-resident population dropped for the first time since 2004.  (Link)

Coupled with numerous belated cooling measures, property and rental prices have remained weak.

Needless to say, this cannot be allowed to continue any longer because Singaporeans’ wealth – especially PAP elites/affiliates – is mostly tied to real estate.  HDB has now been roped in to support rental/property market.

HDB’s reason for lowering the “cap on number of tenants allowed in flats” is to prevent overcrowding.  Hmm … why is HDB suddenly concerned despite this issue having been around for a decade?

Singaporeans should not forget that PAP has its own agenda whenever ordinary citizens are being assisted.  Every new policy or tweak has one objective: to increase Singapore Inc’s bottom line/GDP.

Under the new ruling, the maximum number of tenants in a 4-room or bigger flat will be reduced from 9 to 6 in May.

A large number of tenants – at least 20,000 – will have to seek alternative accommodation when their tenancy is up, probably moving to private property.

According to HDB, 54,000 households have rented out whole flats with 11% or 5940 flats having more than 6 tenants registered as occupants.  An additional 73,000 households have also rented out rooms.

Expectedly, MSM did not provide any figure on the number of affected tenants but it’s easy to arrive at an estimate (tables below).

Households renting out whole flats

The number of affected tenants is likely to be around 10,000.

Assuming only 20% of households have exceeded the new rule by 1 tenant, 14,600 tenants will need alternative accommodation when their tenancy expires. 

The total number of tenants affected by HDB’s new rule should easily exceed 20,000.  Why doesn’t HDB disclose relevant statistics?  State secret?

With one simple tweak, HDB has created an additional demand of at least 20,000 tenants.

The real beneficiaries are of course owners of private property: thousands of  affected HDB tenants will not be able to rent from HDB lessees as public housing supply runs out.

As PAP prepares to the red carpet for more foreign talents, this will lend even more support to the rental/property market.  Ordinary citizens will be screwed by PAP’s self-created inflation.

Barring a market downturn, rental and property prices will be heading north.  No thanks to a PAP-controlled HDB.

PS

High property prices create an illusion of wealth and attract wealthy foreign investors.  This in turn support real estate prices at the expense of citizens.

To increase property prices, PAP has always increased demand by increasing the foreigner population.  Some shocking numbers:

Since Lee Hsien Loong became PM in 2004, the number of new citizens, PRs and non residents increased by 170,000, 219,000 and 890,000 respectively.

With an increase of almost 1.3 million foreigners, how could property prices and our GDP not increase?

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

 

 

 

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3 Responses to “HDB roped in by PAP to support rental/property market”

  • heading no where!:

    When the clowns have ran out of ideas and solutions to boost up the economy, the next best bet is on the importing more FTs and FWs!!…Why do you think the chief clowns is so worked-up when the TPP failed as a result of US pulling out?….that’s because the next wave of FTs and FWs from the western southern America has been cut off!
    For donkey years the clowns have been ‘banging their heads’ (borrowed from the $8 clown) against the wall with regards to the ‘productivity and innovative’ strategies that all their faces are bloodied without any real and solid results!!

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  • HarderTruths:

    Hahaha

    Great CNY present to pappy voters – made homeless by unfilial son to keep his million dollar salary and bonus for doing nothing.

    HDB pappy voters – pappies do not need you anymore. Enough hard-core upper class pappies ,civil service and FT citizens to win all future elections.

    Please get the book ‘Homeless Living for Dummies’ before it sells out.

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  • oxygen:

    REAL ESTATE IS THE LAST FRONTIER OF DEFENCE of failed PAPPpy’s economic mismanagement. When this one falls, LEE-jiapore is GONE.

    Just imagine these likely impact if the expected interest rate rises crashes the property market

    - overleveraged borrowers can’t service their mortgage, they are forced to unload with snowballing cascading impact on the values of entire property resale values.

    - financially distressed household can’t even afford groceries, just watch what will happen to retail and consumer spending across the board and this will come FASTER for those desperate households to MORE TENANTS needing to rent out space to put food on the table.

    HDB have not run through the home economics reality of this dumb decision. It has NEVER been concerned with the density nor comfort of living in public housing. They allowed households to keep dogs and cats disturbing the peaceful sleeps of residents at night.

    Phillip Ang is right to conclude that HDB subletting rules were SUDDENLY TWEAKED TO SUPPORT A CRASHING PROPERTY MARKET walking on water of fiction economics.

    LEE-jiapore is in trouble.

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