Not for love of money, but of Humanity. "Greater is he who works for the good of all, then he who works for the good of himself only" ~ Matthew 25:40: "The King will reply, 'I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.'"- (NIV). I live in Singapore where the Emperor must not be disturbed.

Thursday, September 23, 2010

How to correct HDB flat prices by 20% for now.

How to correct HDB flat prices by 20% for now.

Perhaps in a time of rocketing HDB prices due to the 'dire need' for HDB flats,
Gov should implement the following:
  1. Rationing of HDB flats ownership by floor area, with entitlements proportionate to the number of citizens/PRs owning the same apartment. My suggested (generous) calc. even in this time of 'dire need' is [800sqFt + X(300)]: where X is the no. of SC/PR owning such a flat (acc. ref below, would still qualify a single owner for most 4rm HDBs, but not 5/ higher which would be for families).
  2. Make anyone owning BOTH HDB and Pte property enjoy the owner-occupied property tax rate of 4% on the HDB and have the pte property be annually taxed at 10% REGARDLESS of where the owner actually resides in- so as to keep to the spirit that HDB are actually meant for owner-occupancy. (A dual property owner in disagreement can dispose of his HDB which he is obviously not occupying, to enjoy usual 'owner occupied' discounted property taxes on his condo etc).
  3. Charge PRs double purchase stamp duty when they purchase a HDB unit (open mkt) to discourage PRs competing for public housing options over pte housing options and limit the number of foreigners awarded PR status given out per annum until the a/m can be properly enforced.
  4. Impose a Public Housing foreigner rental levy (PH-FRL): every foreigner (F) (i.e. non citizen(SC)/ PR) renting a HDB room/ unit shall have to pay a levy of 20% of rental / $80/pax/mth, whichever the greater to HDB for their enjoyment of 'subsidised' public housing in Singapore. ALL lessees (SC/PR/F) shall be registered with HDB so no SC/PR can 'rent' a unit whilst owning one (i.e. profiteer fr secretly re-renting it to the F).
    - All foreigners (friends/ relatives) bunking in with a Singaporean for >2 weeks would have to be registered with HDB so as to avoid misunderstanding when HDB officers come round to check.
    - Evasion of such levy would entail a a fine, jail or confiscation of the HDB flat.
  5. Charge PRs who own in HDB units higher conservancy fees so as to encourage them to move to pte housing/ become citizens if all the a/m fail.
The a/m 5 pointers are more egalitarian, effective and citizen empowering solutions that I hope the gov (MBT) would consider first, before blaming the low birth rate for his (their) attempt to inflate Singapore economy with more foreigners- there must already be formed a foreigner and PR bubble, otherwise why else the sharp escalation in housing prices, esp that of public housing?

Should Singapore economy be built on bubbles or firm fundamentals?

This the PAP must answer; in the meantime, please ensure that Citizens feel both privileged and secure in their own country- so that citizens can procreate in peace and security- and uphold the vibrancy that we have from young grown to hold dear.

- 'HDB Flat Types & Models': "Did you know that there are different HDB flat types? And within each flat type, there are varying models:" []
- 'Benefits for Singapore Citizens & Permanent Residents': (Subsidies & Schemes: ICA,1May2009) (pdf)
- 'Don't deny investors a choice': "Over the years, this "sandwiched" class of private property owners worked hard to pay for their homes with the intention to move to an HDB flat during retirement. The private property could then be rented out to provide a stream of retirement income. The new requirement has effectively killed the hopes of many such people." [ST 1Sept2010]
- 'THE EFFECT OF HOUSE PRICE ON FERTILITY': YI, J. and ZHANG, J. (2010): EVIDENCE FROM HONG KONG. Economic Inquiry, 48: 635–650. doi: 10.1111/j.1465-7295.2009.00213.x [abstract]: "It is found that a 1% increase in House Price (HP) is significantly related to a 0.45% decrease in total fertility rates (TFRs), which is robust in sensitivity tests with an alternative model specification and alternative measures of TFRs. This implies that high HP inflation can account for about 65% of the fertility decrease in Hong Kong in the past four decades."
- 'Housing Prices affect Birth Rates as well... !!!': "The objective of HDB flat was originally meant to provide families a rooftop at a reasonable low cost. It has diverted so largely from its original objective in late years and this issue had affected many young couples especially local Singaporeans." [REACH 16Sept2010]
- 'YPAP leader and new citizen Sinha Shekhar complains about low rent of his resale HDB flat': "Mr Sinha also revealed that he owns a private property, implying that he bought the resale HDB flat NOT for staying but for renting and making money." [TR22June2010]
- 'Relook eligibility criteria for renting out HDB flats': "PRICES of HDB resale flats have been high for some time and there are no clear signs of them falling, despite the poor economy.
One reason for these high prices is that HDB flats are rented out." [ST 12Apr2009]
- 'HDB resale prices hit record high again rising by 4.1% in Q2': "DB resale flat prices have hit record highs again. Prices rose by 4.1 per cent in the second quarter of 2010 compared with the previous quarter. This makes it the fifth straight quarter of increase. " [CNA, 23July2010].
- 'PRICE INDEX OF HDB RESALE FLATS': Resale Price Index from 1st Quarter 1990 to 2nd Quarter 2010 [HDB InfoWeb] (pdf chart)


Posted to/ related posts:
23Sept2010: Not penalising private home owners
23Sept2010: Indonesian took up Singapore PR so he can buy resale HDB flat
23Sept2010: HDB wins UN-Habitat Scroll of Honour award
21Sept2010 (edt): Gen Y here just can't settle down
23Sept2010 (edt): New measures to cool property market are dissappointing
11Oct2010: Singaporean not keen to have children due to escalating HDB prices / Selling $1million 5 room HDB
21Sept2010: Mah Bow Tan - Demand due not just to immigration
21Sept2010: How to correct HDB flat prices by 20% for now.
SG forums:
23Sept2010: Ridiculous HDB Prices
21Sept2010: HDB flats – S’poreans come first?
21Sept2010: HDB policy on singles: Singaporean vs Permanent Resident
16Oct2010: Singapore’s declining birth rate SG club:
23Sept2010: It's not fair, says private home owner
REACH forum:
23Sept2010 (edt): On HDB resale prices and temporary home for the newly-weds
23Sept2010 (edt): Re: New Rules on HDBs 5 yr MOP and Private Property
23Sept2010 (edt): HDB Valuation Prices is the Root Cause !!!
23Sept2010 (edt): Housing Prices affect Birth Rates as well... !!!

23Sept2010: HDB Mortgage SLAVES
29Sept2010: Mah Bow Tan: Immigrants not solely to blame for rising housing demand

05Jan2011: "Works there, why not here?"

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