Leong Sze Hian
Number of flats sold declined, contradicting Mah’s explanation on reasons for HDB’s S$2 billion deficit.
On 7 November, the Minister for National Development, Mr Mah Bow Tan, explained why the Housing and Development Board has incurred a S$2 billion loss this year. The loss is twice that of the previous year. According to Channelnewasia, Mr Mah said:
“It is making a loss and the government gives it grants every year to cover the losses, mainly because we’re giving subsidies to people to buy flats to make flats affordable to first timers. That is why we’re making a loss.”
The report went on:
“Mr Mah said the HBD makes a loss each time it gives out subsidies to first-timer home buyers, and when it sells flats lower than their cost price. The reason for the high deficit was because more flats were offered for sale last year, compared to the year before”.
Mr Mah’s remarks seem to contradict the statistics provided in the HDB’s latest annual report.
According to the annual report, HDB revealed that “the number of flats sold under the home ownership scheme this year was 4,738, which was 7,253 less than last year”.
According to its section titled “Key statistics”, the “demand for flats” was 9,870 Home Ownership flats for 2008/2009, compared to 12,449 for 2007/2008; and the “Building statistics – Dwelling units” was 3,154 in 2008 compared to 5,063 in 2007.
All these numbers show that the number of flats sold have declined, rather than increased.
The number of flats sold under the home ownership scheme declined by 60 per cent, “Demand for flats” declined by 21 per cent, and “Building statistics – Dwelling units” declined by 38 per cent, for the last year.
So, how is it possible then that “the reason for the high deficit ($2 billion) was because more flats were offered for sale last year, compared to the year before”, when the HDB statistics show that flats’ building, demand and sales, all declined substantially last year compared to the year before?
Can the Minister clarify his statement on the reasons for the doubling of the deficit from $1 billion to $2 billion for the last year?
As for Mr Mah’s assurance that HDB “sells flats lower than their cost price”, the HDB has not disclosed the breakdown of the cost of building flats, despite letters to newspaper forums requesting for this information, almost every year.
The last time this information was disclosed was in 1981, when the then National Development Minister Mr Teh Cheang Wan, disclosed the land and construction cost, as well as the subsidy and selling price, of the various flat types in six districts.
For example, a three-room flat in the central core region, cost $53,700 to construct and incurred a land cost of $40,000, and sold for $57,100.
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Picture from Straits Times.
Parliament will sit at 1.30 pm on Monday, 23 November. The following are some of the questions tabled for the Ministry of National Development:
Mr Chiam See Tong: To ask the Minister for National Development (a) what it costs the government to build a 3-room, 4-room and 5-room HDB flat; (b) what is the profit margin which HDB adds to the cost for each of these categories of flats when it sells them to the public; and (c) whether HDB bases the selling price of flats on the prevailing market price of these flats.
Er Lee Bee Wah: To ask the Minister for National Development (a) how many new Build-To-Order flats are presently available for selection; and (b) how do the supply and demand factors influence the cost of these flats.
Mdm Cynthia Phua: To ask the Minister for National Development (a) what is the projected supply and demand of HDB flats in the next 5 years; (b) what are the parameters that are taken into account in the projection of the supply and demand of flats; (c) whether the Ministry has considered an annual buffer number of ready flats and, if so, what is the number and the parameters in arriving at that number; and (d) what measures will the Ministry consider in ensuring that first-timers get a new HDB flat within 3 years.
Dr Muhammad Faishal Ibrahim: To ask the Minister for National Development what is the current waiting time and the number/percentage of couples applying for new HDB flats under the Fiance/Fiancee Scheme.
Dr Lim Wee Kiak: To ask the Minister for National Development (a) what is the total number of permanent residents (PRs) who own HDB flats and the distribution pattern of PRs in the various public housing estates; (b) whether his Ministry will ensure that there is a good mix of PRs in the various housing estates to encourage better integration with Singaporeans; and (c) whether his Ministry will consider expanding the current policy on racial mix for HDB flats to include PRs.
Mr Lim Biow Chuan: To ask the Minister for National Development (a) how many HDB tenants have been evicted from HDB rental flats for the past 12 months due to illegal sub-letting or inability to pay rental; and (b) what are HDB’s plans to provide alternative housing for such evicted tenants if they are unable to find alternative accommodation.
Mr Lim Biow Chuan: To ask the Minister for National Development whether his Ministry will review the household income ceiling for rental flats to take into account inflation and the increased cost of living, before pegging rental rates at 30% or 50% of the market rate.
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96) Dong Fang Zhi Foo on November 24th, 2009 11.53 pm
” I never underestimate these talents after getting a shock of my life that there are now so many new citizens. Almost caught me by surprise.”
Ya. these are really getting so many talents to serve them to come up ideas and strategies.
1. new citizens. How does this affect the trend of increasing opposition support base?
2. NMP scheme. How will this affect those of their supporters who have become middle voters?
3. Philip J appointment : ditto point 2.
Before we know it, it may be Game Over. As time goes by, so many more have come in and counting.
Oh by the by, Chiam is getting so old liao.
Can new citizens choose to live in opposition wards?
How would boundaries be drawn?
What else to come?
Come, lets come together.
Who is the chief architect who came up with these policies?
singaporeans should know the name of this person.
Is it just MBT or are perm secs involved?
sorry for my ignorance.
CPIB and CAD should investigate into the HDB loses immediately without delay.
Something could be amiss. Very suspicious. I still remember the late Minister of National Development, Teh Cheng Wan’s suicide case – he committed suicide when CPIB was investigating him with regards to corruption.
How can HDB lose money when
1. It is the monopoly of the public housing,
2. It utilises cheap land grabbed from powerless owners at peanuts
3. It gete the cheapest tenders to build the flats,
4. It sells them at ever-rising prices,
5. It has the power to make rules and regulations at its whims and fancies and strictly implemented them to the letter.
6. It gets grants and subsidies from the Ministry of Finance.
7. It is administered and managed by top scholar talents and supervised by a Multi-Millionaire Minister and a ‘superb’ Permanent Secretary, who are being paid the world’s highest salary for their ‘outstanding qualities’, as ‘justified’ by MM Lee during a Parliament debate on paying ministers and top civil servants obscene millions of dollars salary to prevent from going corrupt.
For the sake of the nation and the common people, the taxpayers, the HDB dwellers, the Accountant General’s Office should also take it upon himself to look deeply and thoroughly into the account books of the HDB and the MND without delay. It should not close both eyes and both ears, pretending it cannot see and cannot hear anything.
THE PEOPLE ARE SHOUTING VERY LOUDLY!
INVESTIGATE! INVESTIGATE! INVESTIGATE!
Do pardon me for poor reading of superficiality, i thought the Photograph of Minister Mah here makes him look like a very kind and friendly person. Why are most netizens so cynical of his ability and credibility?????
patriot
I second the Call made by Poster #104; based on the reasons and questions raised by the Commenter, there is indeed a need to investigate into the Matter.
Let’s hope that the Corrupt Nimcompoop TEH CHEANG WAN’s Spirit is not dwelling in the Present Parliamentarians.
patriot
My dear, “can’t stand this” on nov 22nd, 2009, 4:46pm; totally agreed with you, there are plenty of smart people like sze hian who can be engaged to operate/’run’ hdb better than the present bunch of useless, mediocre, mercenary, despicable, ungrateful and non-trustworthiness’ morons-nerds-idiots-imbeciles-mongrels-liars, who keep on lying and lying just to disguise and camouflage their real intentions in covering up their stupidities in ineffective and non-efficient monopoly of Singapore public housing.
Fully agreed with “investigation urgently needed” on nov 26th, 2009, 908am, that truth needs to be made known to the public immediately, as hdb is the sole public housing agency that provide public housing to the Singaporeans in an unilateral matter, with involvement of gigantic taxpayer’s money to fund the development! How mbt can just simply proclaim those figures without concrete evident to backup his claims??? This type of dishonest public announcement is an outrageous ridiculousness that should subject him to relentless public interrogations until the truth is being revealed!! Is he treating Singaporeans as morons, peasants, country-bumpkins, nerds, and idiotic imbeciles like him?
Last but not least, should hdb close down as it is no more relevant in providing “quality and affordable” public hosing to Singaporeans anymore?
Mah’s explanation does not square with HDB’s annual report???
Of course it doesn’t tally…Haven’t you heard the Phrase :
If you can’t convince them…Confuse them!
Should HDB close shop? You have already achieve the target of letting most Singaporean own a flat. Things change and HDB need to change.The roles and functions of HDB need to change as tne housing needs of Singaporens change. WAKE UP HDB
I support Mr. Mah all the way no matter what!
PAP best!
MBT is the biggest moron ever, everything I see his face on TV, i want to spit on his face.
Best of all, how can ppl in tampines GRC continue to vote for him… I rather vote a goat into government than him
Yup…can’t believe how silly tampines people are
we deserve whatever we have in the government.
we deserve to be fleeced. every day.
I rather vote a chimpanzee(paid peanuts), pea-brain chicken.. into government than MBT
mbt need to b scaked immideitally