From Straits Times: HDB housing available, but why can't
I get a flat?
Singapore is facing a supply crunch in the public housing arena,
but the Government has said the HDB cannot keep on building new
flats to cater to 'all demand that come onstream' - especially
newlyweds looking for their first home.
Homebuyers may have to turn to resale market: Minister
In response to a question in Parliament by Aljunied GRC MP Cynthia
Phua, National Development Minister Mah Bow Tan said homebuyers,
especially newlyweds, may have to turn to the resale market to
widen their options, as the Government cannot continue building new
flats to cater to the new demand.
I'll be getting an apartment as a newly wed in about 2 yrs time,
and this policy utterly struck me dumbfounded. I view it the
legitimate aspiration of newly weds to purchase a new flat in more
accessible areas. HDB is the market maker and therefore it is their
responsiblity to build new apartments to meet the demand and
location requirements of newly weds.
What higher housing function does the Govt have, besides housing
everyone, than to provide the maximum housing satisfaction at the
lowest cost? All HDB flats should be Built to Order, with new BTO
proposals arising from public consultation. This will guarantee the
demand for, and the minimal desirability of the project, ensuring a
win-win situation.
Additionally, resale market should not be artificially propped up
by this forced policy of channeling financially pressed newly weds
into the resale market, which in turn is ridiculously used to set
the prices of new flats in a feedback loop.
With old flats regularly torn down and new emigrants and PRs coming
here, it is disingenious to claim that upgraders cannot find buyers
to take it off their hands. Secondly, the needs of upgraders cannot
take precedence over that of newly-weds. It is in the interest of
all that new housing be well supplied to deflate the unhealthy
asset inflation, such that resale flats eventually find a lower,
and much fairer value, to attract buyers. Finally, the HDB can
always act as buyer of last resort, to buy back flats at a lower
price. The glut caused by a deliberate 1-2% oversupply can easily
be absorbed by renting to foreign workers.
What do you guys think?
