The following is Part One of a special three-part focus on the Housing and Development Board’s public housing policies. Parts Two and Three will be published on Tuesday and Wednesday respectively.
Leong Sze Hian
I attended the HDB’s Resale Seminar which was attended by over one hundred persons.
Judging from the 75 minutes Q & A, during the 3 hour 45 minute seminar, and mingling with the crowd during the break, I estimate that about 80 per cent of the attendees were permanent residents (PRs).
Many questions centred on when PRs could sell or rent out their flats, and when they can repatriate profits from the sale of their HDB flats, when they leave Singapore.
To what extent has HDB policies led to undesirable outcomes for Singaporeans, relative to PRs?
Minimum Occupation Period (MOP)
A PR can sell his or her resale HDB flat after just 1 year’s MOP.
A Singaporean who buys a resale flat with a bank loan, can also sell after just 1 year.
However, many Singaporeans buy new flats, or resale flats with a CPF Housing Grant, which have a MOP of 5 years.
For resale flats with a HDB loan, the MOP is 2.5 years.
The increasing “headache” for some Singaporeans may be that they cannot afford the Cash-Over-Valuation (COV) on a resale flat.
Since foreigners do not need to contribute to CPF, they generally may have more cash to pay for the COV, when they become PRs.
As to new flats, since a typical Build-To-Order (BTO) is about 3 years, plus another 5 years MOP, it may be about 8 years before a Singaporean can sell his or her flat.
What if you can’t service your mortgage before your MOP?
What if you need to be divorced without children before your MOP?
Let me use an analogy. You want to invest in a property and also need a house to stay.A property developer offers you a private property at a discount of 20 per cent, using its unique “market subsidy pricing” policy, but it will take 3 years to build, and you cannot sell it for the next 5 years.
Another developer offers you a similar property that you can stay in immediately (and save on your rental for 3 years), and allows you to sell anytime.
Which property would you buy?
I think the developer with the “subsidy” may hardly get any customers at all.
But, many Singaporeans are fixated with the notion that a new flat is sold with a “discount”.
Imagine you had applied for a new BTO flat in 1990 and saw your flat appreciate greatly in value until the last peak in 1996, and then declined in price by as much as 40% for the next 13 years.
Your headache may be that you couldn’t sell when the price was high, because of the MOP.
Will PRs ever have this “headache”? No, because they can’t buy new flats. A blessing in disguise perhaps – no need to wait, can buy immediately and sell after just 1 year.
Resale Levy
When a Singaporean buys a second new flat, the resale levy has to be paid, based on the first flat type sold earlier.
For those who may be financially stretched, who can’t afford to pay the Resale Levy, they will have to purchase a resale flat instead.
Do PRs have this “headache”? No.$
In fact, when they become citizens, they can buy their second flat, which is considered as their first subsidised flat, with a 1st-timer grant as well.
HDB Concessionary Loan
When a Singaporean buys a second flat, he can only get a second HDB loan if the flat purchased is a bigger one.
This may entice him to buy a bigger flat than he can afford.
PRs don’t have this “headache”.
When they become citizens, they can buy their second flat of any size and get a HDB loan.
Since bank loans are typically lower than the HDB loan’s 2.6 per cent interest for the first 3 years of the housing loan, a PR who becomes a citizen within say 3 years, may actually pay a lower interest than HDB’s in the first 3 years, and then convert to a HDB loan when they become citizens, say before the 4th year.
Income Ceiling
Singaporeans are subject to the $2,000 and $3,000 Income Ceiling for the purchase of new 2-room and 3-room flats. This may in a sense “force” Singaporeans to buy a bigger flat than they can afford.
For example, if your household income is $3,001, you must buy a 4-room or bigger flat, as you have exceeded the 3-room Income Ceiling.
Why is it that the Income Ceiling is $8,000, instead of $3,000, for 3-room flats in mature estates like the recent Queenstown (Dawson) where the prices of flats are very high?
Since the lower the household income, the higher is the Additional CPF Housing grant, Singaporeans may be tempted to buy a flat before they can really afford it.
For example, a household with monthly income not exceeding $1,500 gets the highest grant. But, how many households earning less than $1,500 can really afford to buy, and run the risk of default over the next 30 years?
So, to buy earlier so as not to cross the Income Ceiling and get a higher grant may be a “headache”, if you can’t pay in the future.
Buy later when you can afford, but risk crossing the Income Ceiling, and be “forced” to buy a bigger flat, also a “headache”.
PRs don’t have this “headache”. They just buy any size resale flat that they can afford. Even if a PR earns $1 million, he can buy a 2-room resale flat as there is no Income Ceiling for resale.
CPF Housing Grants
Some Singaporeans also perceive that it is better to get a CPF Housing Grant. But you may have noticed in recent years that every time the grant is increased, the prices of new flats increase by even more.
So, is an increase in a grant that is less than the increase in the price, really a benefit?
Renting Out Rooms
PRs may generally have smaller families as they may not have their parents in Singapore, or not have children yet.
So, some may rent out rooms immediately after they buy a flat. [PRs can rent out rooms immediately but not for the entire flat.]
Some foreigners may also be accustomed to sharing a flat before they become PRs.
So, they may be able to pay higher prices for resale HDB flats, because they plan to rent out the rooms for income.
Singaporeans, on the other hand, generally buy flats to stay without the intention to rent out rooms immediately, as they may generally have larger families of parents and children.
I think most Singaporeans see a HDB flat as their home for life, and not as a temporary investment, providing income as well as saving on housing costs whilst in Singapore.
How can our housing policy allow PRs who own private property to buy a HDB resale flat and rent out the rooms immediately, as long as they stay in their HDB flat as well?
Are these some of the possible contributing factors to why HDB resale prices are skyrocketing?
In this connection, HDB resale prices rose about 8 per cent last year, compared to only about 2 per cent for private property.
Why is it that two PR siblings of any age can buy a resale flat, whereas two Singaporean siblings must be either orphans or age 35 and above before they can do so?
Review HDB Policies
HDB policies could be reviewed, with a focus on the undesirable outcomes for Singaporeans, and at the same time vis-a-vis PRs.
Policies should not be maintained for reasons of solving a problem – like PRs need housing too, IR foreign workers need housing too, etc.
Policies should also not be maintained for reasons of avoiding a problem – such as if new flats are priced lower on a cost-plus basis, the property market will crash and HDB resale prices will not grow.
This reasoning is in my view fundamentally flawed, as even if new flats’ prices are gradually reduced on a cost-plus basis, it will be about 8 years (3 years BTO plus 5 years MOP) before they can be sold in the open market.
So, it may not cause resale prices to drop.
Instead, it may help to moderate the current skyrocketing prices which may be an increasingly unsustainable asset bubble.
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Cannot believe our government is actually benefiting PR more than Singaporean. What else left to do except to wish for an opposition government?
Do not just wish. Vote for one.
I usually like TOC articles, but taking apple and oranges putting them in pot with salt, pepper and chili does not make for a good soup
You are mixing new flats with resale flats
You are mixing social development and profits
Not being able to have a choice (compared to citizens) is definitely not an advantage; citizens can also chose not to buy new flats
The COV vs CPF argument does not hold much water either
IF a solution is put in place for the HDB problem, the real estate prices are going to fall island-wide
It would be good for the economy; but will TOC be shouting that PRs were at an advantage because they could not buy HDBs?
There are problems with HDBs but your article would be more credible if it were not just fanning the fire
Which policy is the one tilted towards PRs?
At the end of the artlcle you say you want resale prices to go down – isn’t that to the beneift of PRs? And isn’t that to the disadvantage of Singaporean flat-owners?
Phew, I’m not the only one confused by what this piece is trying to argue.
Agree with #3 and #4, esp 3.
Not up to yr usual standard LSH. Way below.
Said this many times before. Time period for PRs to wait out before they can buy resale flats should be 5 years upon granting of PR status. That means upon granting PR status, they can only RENT resale flats and NOT buy. 5 years should be sufficient time to show committment to this country as HDB flats are subsidized for long term residents of Spore.
No restrictions on buying private property upon granted PR status.
Also, one PR conversion to Spore citizen should be scrapped to allow that new citizen to buy BTO flats. Reason being that this is a stepping stone to profiteer again just like in resale where one spouse is still a foreign national.
Since most PRs are from China, India & increasingly from the Philippines, the amount of profit that they generate from resale and BTO flats is enormous. Given the lax requirement by these countries for their nationals to regain their national citizenship upon renouncing it is as easy as signing and a few forms, they can easily uproot themselves when the have made the calculations that they are better off for good back in their native countries.
So, which Opposition dares to contest on this platform for the next GE? It would be better if all the Opposition can debate & suggest alternatives for the above system which is currently abused to the tilt but that true blue Spore citizens have no say in it.
PAP prefers foreign talent because they can give birth and contribute to our economy, they must give them more attractive benefits and better options.
Locals can’t give birth or work cheaper, better, faster and like to complain like a champion. They will only give you SPUR and spur you at the rear.
Why does the PAP government bully its own citizens. Vote the PAP out.
Hmm.. I agree with previous comments – kinda confusing article, not logically consistent. Is your argument that citizens are worse off because they have _more_ options than PRs? All your points about PRs and resale flats are equally valid for citizens who choose to buy resale with a bank loan, aren’t they?
Your points regarding PRs renting out rooms because they’ve got smaller families are a fiction you’ve created for the essay – have you got figures to prove it? Anecdotally, I know half a dozen couples who have bought flats recently, both citizen and PR. Most of the PR couples have kids, not one of the citizen couples do. Is your point that couples who are willing to sacrifice their comfort and rent out part of their home can profit by doing so? That seems to be perfectly in line with Singaporean meritocracy – those who are willing to put more work in do better in life. If, as you claim, Singaporeans don’t want to do this, it’s nothing wrong with the policy, because it’s certainly not biased in favour of anyone.
As for the banks offering lower interest rates than the HDB, they certainly weren’t when I applied for my loan recently. Have you got figures to back that claim up?
3) Charles on January 11th, 2010 7.36 am
You are mixing new flats with resale flats.
The two can’t be separated… the ‘valuation’ of flats, new and old depend on the transacted prices of flats in proximity. If resales flats are priced high, a new flat next to it is going to priced high as well (albeit minus the grant … which you have to give back in the form of levy when you sell the flat, plus rental maybe for temporary housing while it is being built).
4) Catherine Tan on January 11th, 2010 8.08 am
At the end of the artlcle you say you want resale prices to go down – isn’t that to the beneift of PRs?
The issue may be that it MOSTLY benefits PR now. If what Leong proposes comes true, then the benefit will be spread to citizens as well. Like I said, resale prices affect prices of new flats (which citizens buy). Not to mention, singles can only buy resale, even if they are 35.
Thanks, Mr Leong.
I think it’s time Singaporeans pay attention to the HDB-divide between Singaporeans and PRs.
Just the other day, I overheard a man speaking in a heavy Chinese accent urging the other party over the phone, “that it’s ok for PR to apply for HDB. Just apply”.
PAP stinks! Get them out!
To Matt.
“Your points regarding PRs renting out rooms because they’ve got smaller families are a fiction”
Matt, have you data to prove it is a fiction?
We know for sure PRs comes from screwed-up countries where they can’t find a job and must comere to Singapore to find jobs. Then these kiasu PR see what they can expliot from silly PAP government policies favouring PRs.
The PAP government should stipulate that after 5 years PR take up citizenship.
A very good analysis by Mr Leong. I’m surprised some commenters didn’t get the gist – that is although citizens are given resale grants and new flats, these are not always advantageous.
Another advantage of buying resale flat without grant is flexibility of relocating to near your workplace thus saving travel time and increasing your employ ability. Again something Singaporeans taking grant or new flat cannot do because of the minimum 8 year MOP.
THANKS Mr Leong!!
JW – no data, as I said. Anecdotally, I haven’t found it to be true. I highly doubt it would be true, though. If, as you say, PRs all come from “screwed-up countries”, then the average family size will be higher, in general. The relationship between poor countries and higher family sizes can be statistically demonstrated, at least.
I’m sure LSH will enlighten us if he’s basing the statement on published figures, rather than his own imagination.
Also, as a PR myself, I think I can dispute your claim that “We know for sure PRs comes from screwed-up countries where they can’t find a job”. I think the policies are favoured heavily towards Singaporeans. There’s significant financial advantage to being citizen when buying.
Terence, you’re absolutely right – for the financial advantages that are offered to citizens, there are compromises. They might not be right for everyone. That wasn’t the tone taken in the analysis though. Things aren’t biased towards PRs if citizens can do anything the PRs can but choose not to so they can get a grant from the government. That’s called free will. Don’t take the deal if it’s not in your advantage.
it is good that they have such lousy policies to frustrate Singaporeans so singaporeans will give up being singaporeans. leaving this country is the right option.
Wow…i did not know the 1 year MOP for PR’s.
As you said Singaporeans will buy a HDB flat to live in for years.
Where else to go. Kids school, work would be nearby.
But PRs just need to time it right to speculate and 1 year is really short.
What a joke by MBT. This would clearly create high turnover and the price to rise.
No wonder, it shot up.
Vote these guys out or suffer.
Looking at the complicated scenarios in this article gives me a headache. However I did pick up a few scenarios where it is advantageous for the PR to “upgrade” to a Citizen.
It is like your old Sin*tel broadband plan that you have been subscribed long ago and you find that a new subscriber gets a free notebook and first 3 months subscription free. You as a loyal long time supporter only get the monthly invoice .
- When you call the Customer service to voice your displeasure, they put you on hold..the computerise voice keeps telling how good they are over and over again.
- Then you put your feelings on your blog, they call you a champion grumbler.
- Then you put put pamphlets showing what you think, they terminate your broadband.
They want New Dogs they ‘think’ they CAN teach NEW tricks…
While us ‘old’ dogs.. knows all their old & new ‘tricks’…
Looks like they are forcing singaporeans to leave….either for overseas or ultimately for those nowhere to go…the coffin…with body parts removed [HOTA] to benefit the undeserving…what’s is left goes to those on the long waiting list.
Remember the NKF scandal…out of every Sing dollar only 10 cents reached the desperate sick people who really need it.
Looks like HDB doing the same screwing and screw up to singaporeans too.
Which means the PAP government [I will never called it the Singapore Gov't as it truely does not represent the Singapore people] is ultimately and directly causing pain and suffering to singaporeans.
Sick..and these politicians dared to called themselves human beings.
Double sick.
prettyplace – your comment pretty much sums up my problem with this whole essay and comments following.
There is no 1yr MOP for _PR_!!! There is a 1yr MOP for _anyone_ who buys a resale flat with a bank loan. This is valid for citizens too.
Why do most citizens not qualify? Because they either:
1) Buy a new flat
- Something the government has reserved for citizens only. PRs need not apply.
2) Got a cheaper loan from the HDB
- Again, PRs are forced to take the more expensive bank loans.
Any citizen is more than welcome to take the same path by free choice that PRs are forced into, and they can pay more for an older flat, and then feel free to sell it after 1yr.
As an outsider, it seems like you guys are complaining about the benefits you are given, because they don’t come without some small catch. There’s no bias towards PRs here – as citizens you are offered the choice to take benefits if you’re willing to fit in with certain conditions.
This is kind of an unusual situation for me, because I disagree with so many of the government’s policies. The point LSH raised about restrictions on divorcing couples selling flats is a good example – this is such a stupid rule that I find it lacks any compassion for people who are already in a difficult situation. So I’m not defending the government here, I’m just saying your complaints don’t really make sense in this particular situation.
The writter seems to argue that PR have an advantage as they can only buy resale, while citizen can either buy new or resale. Sorry but I fail to understand the logic.
I also have agree with Matt that a number of assumptions are made just to support the argument with no justification whatsoever.
Just one point. No HDB flats for PR! That’s will solve all the problem. HDB flats is only for Citizens. Please take note.
Did HDB people at the seminar feedback to the ministers why PRs were keen on questions about selling, profiting and repatriating their profits from Singaporeans as priority concern to buy Singaporean HDB flat unlike Singaporeans who need the flat to stay and build family?
Can HDB forfeit PR from buying HDB flat if they have a property overseas. Unlike Singaporeans who can only have one HDB and cannot buy more to profit, PR has such priviledge of buying HDB in Singapore and still have their own home in their country. Even if they sell HDB at a profit, they will not be homeless. Whereas for a Singaporean to sell HDB flat, they have to sleep in the park or at the void deck unless they repurchae HDB flat again at hefty price due to PR speculation.
I hope Lee Hsien Loong can answer to all Singaporeans in an intelligent manner rather than being a rhetoric retard with no view in his head. Being obstinate and stubborn will not earn PAP much vote in the ballot box.
The HDB also need to look into restrictions or penalties for those Malaysian PRs who rent out their flats but yet stay in JB. They should not be allowed to profit excessivly from the sale of HDB flats since it is for them to stay.
When these PRs leave, they sell and retire comfortably back in Malaysia. But we are the ones stuck with the high prices.
I am quite shocked at HDB policies today. They have deviated from their original intent which is to provide affordable housing for Singaporeans. The price of HDB flats today is comparable to private flats. Maybe Singaporeans who wish to own properties should look to private flats rather than HDB flats.
If one reads the article above correctly, s/he can see how the author has twisted the facts. This is the “bashing immigrants and PRs” so common now in Singapore. I think that at the end there are a lot of hate-campaigns against PRs, which can actually damage the ‘harmony’ of Singapore – maybe in future producing events like what happened in Europe recently (with Italians, for example, physically assaulting migrants and PRs).
The author has been also able to twist polices that are for the benefit of Singaporean families as well as for PRs, leaving aside the confusion that he makes between PRs and migrants, or just foreign investors (which are different categories with different economic interests). Incidentally, does he really believe that the super-wealthy want to buy an HDB flat?
The author appears to understand little of the economic reality of Singapore as well as its demography. Certainly it would be fantastic, for some, to have a Singapore which has 5,000,000 or 6,000,000 Singaporean citizens, so that they are able to then say, (although in a global economy, this would remain a crazy idea anyway) “close the door, let us be just Singaporean by blood”. But the reality is very different and the Singapore population is 4,987,600, with citizens accounting for only 3,200,700, and that leaves 1,786,900 who are not citizens that still contribute (often with high skills and salaries) to Singapore, spend and pay tax, and yes, have children.
Demographically Singapore cannot survive with a population under 3 million. PRs and economic migrants came to Singapore, firstly, because they saw economic advantages, and then many fell in love in the place and decided to stay. It is not a good idea to make them feel rejected or even unjustly singled out. Indeed other countries, such as China, Hong Kong, and the Gulf States are trying to attract many of the Singaporean PRs and economic migrants with packages that are much better than what Singapore has to offer today.
I am not sure how many will decide to stay in a xenophobic Singapore or prefer, as often they have done, to look for green global opportunities in the ‘hew Singapores” of the millennium.
Singapore has to fight in the market of skilled migrants and workers, yet I see a good chance that it may lose since a populist xenophobic campaign may win the hearts and minds of young Singaporeans.
I agree with a previous poster that HDB flats should be sold only to citizens, no PRs, not even 1 citizen + 1 PR. HDB flats are public flats meant for essential public good, and not for asset enhancement or profit making (both govt & citizens). Foreigners (which includes PRs) should only buy private properties or rent.
It’s the same in other countries. If I’m a PR in UK or Australia, I can’t knock on the city council’s door & demand to be allowed cheap public housing. Public housing is a privilege for a country’s own citizens, full stop & end of story.
What will this mean? It will mean that HDB prices will come down and may be depressed for a few years, due to the removal of a significant chunk of demand. But in the long term, the price increase will be moderated and benefit citizens. Will existing citizens who are HDB lessees (you are not owners — take a look at the copy of your HDB deed!) prepared to take on this sacrifice for the benefit of their children?
23) Matt on January 11th, 2010 12.24 pm
There is no 1yr MOP for _PR_!!! There is a 1yr MOP for _anyone_ who buys a resale flat with a bank loan. This is valid for citizens too..
While citizens are certainly free to choose the PRs route (this was acknowledged by the author), they are more likely to have less cash in which to do so (due to increasing COV), having always contributed to CPF.
Basically, you haven’t addressed the part of the article where the citizen is ‘forced’ along a path for citizens where the MOP is much longer. i.e if a citizen and a PR have the same income, the citizen would have a significant portion of it locked in CPF, whereas the PR may have more cash, having only recently converted from a ‘foreigner’ status which he didn’t need to contribute to CPF.
DrQawa on January 11th, 2010 1.35 pm
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PRs and economic migrants came to Singapore, firstly, because they saw economic advantages, and then many fell in love in the place and decided to stay. It is not a good idea to make them feel rejected or even unjustly singled out. Indeed other countries, such as China, Hong Kong, and the Gulf States are trying to attract many of the Singaporean PRs and economic migrants with packages that are much better than what Singapore has to offer today.
==============================================================
SO PR and economic migrants goes to those countries that can provide them the best benefits while we true blue Singaporeans can only stay here and contribute our best even when the Govt treated us like dogs. So why should the PR enjoy more than us?
Many PRs are not really foreign talents so to speak. Say what you like, we are not
happy with HDB with its many screwed up policies. My children want to be quitters
when the chance comes, just like SM Goh’s daughter who married an Englishman and is now staying in England.
30) Spur-proof Hide on January 11th, 2010 1.44 pm
Unfortunately, public housing in Singapore is a rather unique good. Most public housing are really super cheap because they are meant for the super poor. In Singapore, even middle income can buy this ‘public housing’.
Having said that, public housing is certainly a basic good. It’s not good for people to ‘play’ the market and increase the price. can you imagine if import of rice is limited (to analogize the limited supply of hdb flats), and people start buying rice to keep and resell, instead of eating them? That is exact what some of the PRs are doing…buying and renting off their flats while staying in JB or in a condo.
30) Spur-proof Hide on January 11th, 2010 1.44 pm ,
I don’t see why the wealthy won’t do this. it’s certainly still income, and the wealthy didn’t become so by ignoring sources of income.
Sorry, meant to reply to 29) DrQawa on January 11th, 2010 1.35 pm in the second part of my #34 post.
Lobo76:
About the mixing of BTO and resale:
LSH is explaining that because Citizens have the choice to buy BTO but PR can only buy resale, then citizens have it bad?
WakeupEarly:
Allowing PRs to buy HDB only after five years could help cool down the market.
(though I would think that it should be “five year in Singapore” to be fairer to them).
But I did not understand this: “Also, one PR conversion to Spore citizen should be scrapped to allow that new citizen to buy BTO flats. Reason being that this is a stepping stone to profiteer again just like in resale where one spouse is still a foreign national. ”
Could you explain?
Do you mean that if only one in the couple becomes Singaporean but the other is not, then one should not be allowed to buy a HDB? I think it is not possible: it would create too many issues, for example what about a Singaporean who marries a PR? should the rule also apply? the law should be the same for everyone…
(of course the only solution to cool the market will be to change the CPF rules and reduce drastically the amount that can be put in housing and to keep the profits from resale in the CPF).
Singaporean have given up on our government.
There are lots of unfairness in the government policies towards its citizens.
Look at the HDB rental flats, citizens find it harder to rent flats than the foreigners. I dont see any logic. HDB is out of alignment of their objectives, to build low cost housing for the Singaporeans.
These are some of my thoughts HDB should review some of the policies:
1) All HDB discounted flats should be for those born in Singaporean only and not for new citizens.
2)The flats sold to Singapore born citizens should be both subsidized and discounted.
3) New citizens have option to buy only resale flats, anyway their second generation after serving NS should be eligible to buy discounted flats.
4) PR who buy resale resale flats should pay a levy
5) Flats owned by PR should not be rented out
HDB has to take note that these flats are build from our public fund which belongs to Singaporean.
At the end of the day, the outcome is that HDB flats are prices priced beyond the means of a lower and middle class income families. Purchase of HDB requires taking on multi-year loans 5 to 10 times the annual middle class. I feel that the reason is simply the expansion of HDB market to foreigners (PRs) through regulation, limited HDB flat supply compared to PR influx and exploding money supply for loans.
PR can only buy in open market. The rules for open market purchase for PR and citizen are the same. Over and above this, citizen gets benefit of HDB / CPF loan, buy new flat etc etc…all these are denied to PR, and you can only keep complaining? As an Indonesian I am at a distinct disadvantage because I cannot get any of these benefits. Stop whining and grow up.
Spur-proof Hid:
“It’s the same in other countries. [...] Public housing is a privilege for a country’s own citizens, full stop & end of story.”
Actually it is not always true: some countries provide help based on income, not citizenship.
Lobo76:
“Unfortunately, public housing in Singapore is a rather unique good. Most public housing are really super cheap because they are meant for the super poor. In Singapore, even middle income can buy this ‘public housing’.
Having said that, public housing is certainly a basic good. It’s not good for people to ‘play’ the market and increase the price. ”
I totally agree with this and the problem is the govt is all too happy that this is allowed as it gets revenue from every real-estate transaction.
The problem lies in your conclusion that it is PR who are playing with HDB prices and not the citizens: the citizens are playing as much if not more: the citizens see real-estate gambling as the only way to get their CPF back.
Re DrQawa
Singapore certainly do not mind Bill Gate or Buffet and these folks do not stay in HDB.
Those who stay in HDB are certainly not job creator for Singaporean.
“Demographically Singapore cannot survive with a population under 3 million” This sentence is rubbish. Our growth is the strongest during 70s and 80s when we are below 3 million.
I certainly like as much talent here as possible, unfortunately, thise that came here probably cannot even make it in Shanghai or Beijing. And hence, they can be easily replaceablr
HaiGong:
Thank you: I had a good laugh
To Fazlur
Stop whining and GET OUT – go back to Indonesia where citizens are given a clear advantage over foreigners.
Good riddance!
Market-based subsidy is so much more expensive than the actual cost of building now that I think it would save us citizens a whole lot of money if we just bypass HDB, lumped a pool of money together, and build our own block of flat by sourcing for our own contractors….sort of like customized public housing without letting the government earn super profits.
Enough with the government squeezing us citizens dry of every penny already!!!
I wonder when the PRs sell their flats, are they tied to ethnic ratio such Malay, Indian, Chinese. What if the PR is a burmese or philipino, so how? Are they classified under Malay/Indian category or Chinese category?
Can the HDB or relevant Minister comment on whether the points made in this article had been fully discussed before the decision was made?
If yes, was it ever disclosed? If not why not? Or was it an oversight? I think the need for an alternative view is never replaced even when multi-million dollar people are employed to “do the job”
Just Vote for change. A better tomorrow.
45) spirited-centred
Yes, there are 3 race ratios – Chinese, Malay, Indian/Other. The Burmese & Filipino would come under Indian/Other.
31) lobo76
“they are more likely to have less cash in which to do so (due to increasing COV), having always contributed to CPF. ”
I’m not sure this is true. It depends entirely on how long people have been in Singapore before becoming PR. I think you’re also forgetting the advantage citizens have that they can use part of their CPF for the loan downpayment. PRs don’t have CPF savings, so have to pay cash for the loan downpayment.
37) HaiGong
“citizens find it harder to rent flats than the foreigners”
How is it harder for citizens to rent than foreigners?
///Actually it is not always true: some countries provide help based on income, not citizenship.///
It all depends very much on the tax base which is the ultimate cream for any garment. In our context, we know very well how all encompassing our tax base (direct & indirect) is together with the for-profit garment linked enterprises. In a small & tight country, enforcement is stringent & made easier as compared to a lot of other countries where underground economy may be a problem.
36) Charles on January 11th, 2010 2.13 pm
Lobo76:
About the mixing of BTO and resale:
LSH is explaining that because Citizens have the choice to buy BTO but PR can only buy resale, then citizens have it bad?
not really… you don’t seem to be reading the WHOLE thing, only the part where you can put your point across.
True, both Citizens and PRs have the same choice to go resale. (In theory, resale is better because it has the ability to give you a ‘return’ after 1 year) However, this choice is not equal.
E.g, 2 people are given the ‘same’ choice to drink a $100 wine…if they can reach it. The thing is the wine is placed differently with respect to the these 2 people. P just need to move 10 steps, and he can pick up the wine to drink. C, however, has to climb 10 flights of stairs before doing the same. C does have another additional option: with 5 steps, he can drink the $50 wine. So, does C have it better?
10 flight of stairs = addition effort of getting cash that was eaten up CPF
$50 wine because BTO needs about 8 years before you can get any returns, thus lower value.
5 steps (which is less than 10 steps) because BTO is cheaper than resale.
48) Matt on January 11th, 2010 3.51 pm
I’m not sure this is true. It depends entirely on how long people have been in Singapore before becoming PR. I think you’re also forgetting the advantage citizens have that they can use part of their CPF for the loan downpayment. PRs don’t have CPF savings, so have to pay cash for the loan downpayment.
The biggest stumping block is not the loan part, but the COV which seem to be much higher than what the official reports indicated. imo, Loan is for the most part, a non-issue. The citizen may have CPF savings, but the PR just need to endure for 1 year, after which rentals will start coming in.
Citizen: no problem with loan: problem with COV
PR: no problem with loan: no problem with COV.
Where is the ‘advantage’?
They can always come up with reasons for the policies.
Whatever it may be, i am not very impressed.
I will exercise my option.