Andrew Loh/
“The problem that the HDB face is they are just short of rental flats. In the whole of Singapore today, we have about 45,000 rental flats. But that’s not enough.
“It’s quite clear in my mind, we need to ramp up the building of rental flats as quickly as we can. Not just by a few thousand, actually we need to build by tens of thousands. And the earlier the better.” – Mr Khaw Boon Wan, Minister for National Development (MND), 30 May, Today.
The revelation by Mr Khaw may be shocking to some, but perhaps not so to others. Mr Khaw’s predecessor at MND, Mr Mah Bow Tan, had previously pledged – in early 2011 – to build 7,500 more rental flats. Obviously this number is short of what is needed, given Mr Khaw’s revelation.
While more rental flats are welcome, especially by those in desperate need of them, and Mr Khaw should be applauded for tackling the problem head-on – something which his predecessor seemed to have been dragging his feet on – Mr Khaw should get right to the nub of the problem.
And what is it?
Mr Khaw should look into why so many are in need of such flats in the first place, and see if there are any ways to keep those who currently have flats to stay in them, instead of joining the rental queue. The numbers are not clear but one would suspect that at least a portion of these will include those who are defaulting or have defaulted on their HDB mortgage loans payment, and who may be forced by the HDB to put their flats up for sale. It would be good if Mr Khaw could reveal these numbers.
If HDB could work out a more compassionate payment plan for these, it could reduce the numbers for rental flats.
Also, the Town Councils Act was amended some years ago to empower town councils to repossess homes which have defaulted on service and conservancy charges. Again, these numbers are not disclosed, although it is suspected that there are not many whose flats have actually been put up for sale because of this.
Mr Khaw should also take a look at the qualifying criterias for such flats. Mr Mah’s adherence to strict rules was to prevent abuse of the system by those who do not really need these flats. However, by doing so, he had also allowed many to fall through the cracks. The presence of homeless communities spread out all over the major public parks in Singapore in 2009/2010 testified to this.
One of the things Mr Khaw and the HDB should seriously consider is to give families with children and the elderly priority in the queue. We have reported homeless families with children and the elderly (and even the sick) camped out in the parks. In a First World country like Singapore, it is unconscionable that such things should occur.
And since the government has promised to lower the number of foreigners into Singapore, perhaps Mr Khaw should also look into whether flats which were reserved for foreigners could be freed up for needy Singaporeans instead. Some flats which are acquired through the SERs or en bloc programme have been let out to foreigners, for example.
Lastly, the HDB and MND should be in constant communication with the Ministry for Community Development, Youth and Sports (MCYS) as well. Often, there seem to be a disconnect between the ministries. Cases referred to MCYS, which then approach the HDB, seem to be treated like any other appeal for rental flats. This should be relooked. Obviously, if MCYS finds it urgent or important enough to speak up for such cases, the HDB should adopt a more compassionate and flexible stand on these.
At the end of the day, while building more flats is welcome, ultimately it is the affordability of public housing flats which is at the heart of the matter. Thus, Mr Khaw should look at this and come up with a solution, especially for the low-income and the needy.
The HDB must return to its original aim of providing affordable flats to Singaporeans simply because it is the humane thing to do. Mr Khaw’s revelation that “tens of thousands of rental flats needed” shows that perhaps the HDB has deviated somewhat from this goal.
Why else would so many such cheap and low-end flats be needed, if flats were truly affordable?
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Such revelation of shortage of rental flats is not shocking to us. Singaporeans know Mah Bow Tan has been dragging his feet all these years with deliberate intent to let HDB price shot through the roof. If someday there is bubble burst, MBT is one of the greatest sinner recorded in Singapore history. Besides, rental flat should be built stictly for Singaporeans only. Foreigners should not rent subsidised flat built for local. If foreigners want to rent flat, they should go to the resale market to look for flat to rent instead of cutting into the queue. PAP must know the different between Singaporeans and foreigner. Don’t expect Singaporeans to keep repeating because the next GE is 4 years away from now.
Good article.
Yet again we see these shortfalls. However, I would like KBW to do his job and nevertheless, he is on the right track for to elevate this
‘short term’ problem.
However, the most important objective which the HDB is set up for is to provide HOME OWNERSHIP.
By providing these rental flats, HDB & the minister should not be left off, thinking they are doing the best.
The pressing issue should be to build Singaporeans, so that they can truely afford a place of their own.
Only then HDB’s objective can be fulfilled.
It is strange after gobbling up most land, the govt is sending people back to rental flats.
This should only be a temporary set-up, if not we will be seeing townships & ghettos in Singapore soon.
Typical SG style, either do too little in a long period or too much within a short period.
Buy or rent? Does it matter? The problem of affordability don’t go away not because HDB prices are high, but because some people just don’t earn enough. And this is usually the case of laziness and incompetence. Why blame the govt when you can’t afford housing when you are the own cause of it?
Yep… everyone wants to be like this woman in America.. vote Obama to pay for her gas and mortgage… RIGHT!!!
http://www.youtube.com/watch?v=P36x8rTb3jI
Buy or rent/ Tan Ah Beng…….its hard to educate self-serving and greedy people. They worship mammon and are blinded by $$$$$$. The time will come when all is taken away from them.
there are many reasons why people choose or have to rent instead of buying. assets like a home are crucial to their retirements, even in jb. some sell their homes to cash out, some are divorce with kids, some are old folks that got kick out by their children, and some are s-pass looking for cheaper accommodation etc.
it is interesting to know how many people are worse off and need to sell their homes because of their gambling habits. while the casinos claimed to create 30k jobs, we may have to relook at its benefits and social ills if the number of singaporean families made broke by gambling is in the thousands. economy is economy, happiness comes before prosperity and progress.
Er to qualify for rental flats,the income of the applicant is $1,500/pm or less.That means there are tens of thousands of citizens earning that income level if tens of thousands of rental flats are needed.
Malaysian PM warned that subsidies were ‘like opium’ and kicking the habit was hard but necessary.
Why is a free market economy like Singapore so addicted to cheap housing by the government? Because after a short 5 years the sellers get to make 100′s of thousand!! This is greed! Shear GREED!
This housing was started by the LKY’s PAP government in case you forgot.
@Bad Singaporean
You right. I don’t think HDB flats are expensive to begin with. Don’t know why people complaining. Even if they buy high, they can sell even higher for profit. And even if HDB flats were really priced high, it is only right because it reflects our strong economy, and the fact that we have the safest streets & environments, and the world’s best infrastructure. We have to pay a premium for that.
B4 GE, MBT didn’t reveal the shortage of rental flats..
After GE, the new minister for MND said we need thousands of rental flats as he took over the seat warmed by MBT..
I think there are issues behind the curtain of HDB. Why Home Ownership has departed its objective? Land cost? Profit made over decades? Has HDB engaged in partisan politics? If yes, to what extend and how? Rationale behind allocation policy? Positive and negative proposals submitted by sn officers during the tenure of MBT? Any directives issued by PMO to the Board for keeping the land cost away from public, etc? No of rental flats forecasted by sn officers of HDB and comments by MBT?
An unofficial survey revealed that since 1965, HDB has been tasked with a hidden role in partisan politics. It has to ensure that those potential oppo supporters should not exceed 30%, in each constituency. Successful implementation of this policy would ensure that oppo would hardly can obtain more than 40% vote shares in an ordinary constituency, given margin of error. Past GE outcomes have testified to these assumptions. Except for a few keenly fought wards, the average oppo vote shares varied between 30-37%. That’s why oppo reamined 2 seats having fought the battle for 5 decades. In this perspective, HDB has done a good job behind the curtain in perpetuating PAP’s power…
An independent committee to probe behind the curtain of HDB and ensure those responsible should be held accountable, including MBT.
It is more inhumane to destroy the value of homes and send everything reeling downwards
Help the poorer to help themselves is the way to go
Write lesser rubbish and go out to do something for these folks rather then relying on government all the time
And lastly, don’t encourage abuses in our housing system
Otherwise, everyone will want to rent instead of being burden with debts or loans
in malaysia from what i heard, public housing is very difficult to be sold.
This is to prevent any form of speculation of trying to sell HDB at a profit and then later claim no house to stay.
i think the root of the problems is foreigners. be it whether they are snapping up the private condo or PR buying resale HDB flats. the former will put downward supply chain pressure on the supply chain. the PR will be pressure on the demand side thus directly causing high COV and higher resale flats. singapore do not have these housing problems like 8 years ago. but once we open the floodgate to foreigners, the prices start to rocket up.
Mr Khaw, do not look at the problems on the supply side when the real problems is on the demand side. where does this demand from come.
@Observer
“everyone will want to rent instead of being burden with debts or loans”
What’s wrong with that? If renting is more economical, why should we burden ourselves with 30-year mortgages? Why should we let the giant bloodsucker HDB suck our money? Are you privy to the banks, property developers and HDB, benefiting at our expense?
If corrective measures are not taken seriously and urgently, the emergence of social underclass / outclass in this first world city is imminent and sadly unavoilable. Social framework shall become very delicate, torn and tettered in total dilapidation. Leftout citizens turn gypsies not by choice but situations they are in. The ratlist society.
Ur…, can I ask the $8 bypass minister for ur….$8 rental flats also. Many people cannot afford lor.
Blinded,
Precisely.
Can you kindly ask Andrew to write to Mr Khaw and reserve a brand new rental unit, coming by the tens of thousands, for me?
I too want to be homeless and rent – after I cash out on my HDB and live in tent to better authenticate my sob story.
Minister Khaw should be applauded for his quick action to clear up the mess created by MBT. However, in pledging to increase the number of rental flats, he must make sure that Singapore will not end up as another Hong Kong. The crux of the problem is in the affordability of HDB flats and rigid outdated housing policies. Building of more rental flats is not a long term solution. He just need to return to the basic mission of the HDB and put a human touch to its housing policies.
@Observer
I’m coming from the angle of a young couple looking for their 1st home, not someone like you who already has your own home.
The one looking to game the system is you, not me.
Guilty
And we are legion.
@Observer
Look, if I were you, I’d do the same, without the sob story.
The point I was trying to make (even without this potential huge supply of rental flats) is that home ownership need not necessarily be the ultimate goal, especially when so many vested interests stand to benefit, and the buyer becomes the ultimate loser.
I am not looking but I can see where you are going with this. The last I remembered, there is still demand for my home and the strange thing was, people were willing to pay me more than what I had paid for the house.
I am a happy loser awaiting the completion of tens of thousands of brand new rental units
I am also flabbergasted that MP Lee Bee Wah revealed that she encounters between 10-20% of MPS are about people needing rental flats? If that is so, I wonder why she only brought it up now when Khaw is the Minsister for National Developlment and not when MBT was around? Suddenly woke up from a deep slumber or MBT won’t listen? From the ST article it didn’t appear to me she mentioned that she was frivolously seeking the attention to the the Minister about quite a large proportion of people on the ground do need a roof over their heads and more importantly probably cannot AFFORD a flat?
Solving the problem symptomatically is not the way to go and I agree with the author that we need to tackled the actual cause. Is AFFORDABiLiTY being defined now? Are real NEEDS being identified before emabarking on a massive building plan? Is it right to rent flats put to foreigners who are on work permits etc co pared to Citizens? Who should come first. FT policy needs to be tied into this solution as it may be contri outing to the problem of unavailability of rental flats (or flats per se) ! Should we let PRs buy resale? If the original flat was sold at a ‘Discount’ and MBT was saying the opposition was suggesting to ‘Raid’ the reserves, then by that same logic, selling the HDB flat in the resale market to PRs is tantamount to ‘Squandering’ our reserves on Foreigners then!
I do not like the tone of Khaw with his simplistic equation and veiled threat he is trying to insinuate. Shows he has not changed and trying to take a swipe at the electorate. Tsk tsk. Leopard.
@Observer
Ok, tell me: other than the fact that you stand to gain, why are you advocating home ownership like it’s the holy grail? Or maybe you had such good foresight to see this would happen, so you bought early?
In my opinion I have encounter many Singaporeans are greedy all they want is quick money and with the help of the housing agents they sell their so call house and this buying and selling of course will lead to higher flat prices and I still don’t understand why the government did not take any action till now as public housing should be affordable for all singaporeans. The increase in housing price did not match with the increase in pay. Why is that so?
The alarming need for more rental flats -does it mean that singaporeans are poorer now?
In total agreement with the article and The SS. This is such an important basic service that affects all citizens and FWs working here. Hourly cuts across all sectors and I felt the MND should take time to think thru before implementing and changing things that might not work at the end of the day. Housing policies are a real mess and proper thinking and co-ordination between the various ministries are vital for a long term solution.just building more rental flats or BTOs are too simplistic
Wow! suddenly Tens of Thousands or rental flats!
Smells like 9,999 roses short of 1; are there serpents underneath them?
Why the sudden surge? Or is it in tandem with the next wave of aliens? Beats all.
Alas! Lactate not the apes in the woods
when your own children are in dire needs.
Why is there an addiction to “expensive” HDB housing by the PAP found by LKY?
You all despise the PAP and the founder and yet you demand he build house for you!!
Such cynical Singaporeans! Ungratefull!
90% of Singaporeans already has a house but 90% of the people are complaining but the cost of housing?
What hypocrites?
KBW wants HDB to build thousands of rental flat because he knows that going forward more and more Singaporeans would not be able to afford to buy new HDB flats. Note that to date he has not addressed the affordability issue of such flats despite the fact this issue has been hotly even before the recent election. KBW probably thinks he can side step this issue by focusing on rental flats. He would next claim the rental would be “subsidised” just like the new HDB flat for purchase. The KBW “wayang” continues.
To prevent PRs and foreigners taking advantage of rising property prices;
They must own the flat for at least 10 years, otherwise any profit from sales will be taxed 90%.
The taxes will be used to subsidised native born Singaporeans when they but HDB flats.
If we stop foreigners from buying HDB flats they will become affordable to Singapore citizens again.
Foreigners (a.k.a. Singaporean PR’s) who currently own HDB flats should only be allowed to sell to Singapore citizens or to HDB. (Sorry, no more profits for foreigners!)
This is an immediate solution to big MISTAKE made by MBT i.e. to open the HDB door to foreigners and cause 3-room flats to cost $400K to $500K in some places.
Can anybody help me how to get to the National Development Minister Mr. Khaw Boon Wah’s, website, I am an old woman 68 years of age, I need urgent housing due to unforseen circumstances such as recently divorced. I am very new to internet.
I thank those who can be of assistance.
Regards
Mae Wong
NO JOB OR LOW PAY CAUSE BY FT,THAT WHY NEED ALOT OF RENTAL FLAT,ALL BEEN SCREWED UP…HAHA..DAFT SINGAPOREANS!!!!!!!
and,small-minded and narrow-hearted MBT dared speak about ‘OVER-SUPPLY’?
ARE OUR MINISTERS THINKING IN TERMS OF ‘public service’ or in terms of ‘PRIVATE’ practice?
MBT was just following orders to keep prices of HDB flats high for the recent GE as majority of voters already stay in HDB flats and they like the prices of their flats to be high – just feels rich!
Now he has become the scape-goat or fall guy! This is politics in the real world…
Public Housing was not started by LKY it was started by the British andit was then KNOWN AS SIT Flats (Singapore Improvement Trust)
It was PAP that changed SIT into HDB….
And then PAP lost their way and became greedy and started jackin up HDB prices…ad bluffing the people they are now rich…
Now citizens are slaves to their public housing by taking mortgages for 30years.
You ever wonder why a piece of painting can be valued so much and the price keeps going up? In some small ways, housing is like that. Except, its value cannot rise beyond supporting economic factors.For rare paintings, a one of a kind, billionaires can bid through the roof to acquire a piece of historical hype.
Think about it. Don’t just blindly stone your humble HDB flat. lol
Before the GE MBT kept saying “We are more worried about oversupply than under-supply”
Don’t tell me as Minister in charge of building HDB flats, he does not know there was an under-supply of HDB flats
Thank MBT :)
Yet another load of sh*t. I still don’t see the will to win back people’s confidence. Thing’s not good.
Only fools will curse MBT
prophet 31 May 2011
MBT was just following orders to keep prices of HDB flats high for the recent GE as majority of voters already stay in HDB flats and they like the prices of their flats to be high – just feels rich!
Now he has become the scape-goat or fall guy! This is politics in the real world…
???
what kind of crap prophesy is this?
so,tell us then,which minister is not a ‘scape goat’?
what warped thinking.
In the first place, Why EM services contract to take care of HDB rental flats in some mature area estate, e.g : henderson, mountbatten etc?
HDB rental flats should be take care by themselves so that they can control well and know how much they have on hand..
EM services is part of leekingyou mpire consortiums..
greedy ole fart 1st every singapore services to be under his FAMILY control
~PERIOD~
wong sok mei 31 May 2011
Can anybody help me how to get to the National Development Minister Mr. Khaw Boon Wah’s, website, I am an old woman 68 years of age, I need urgent housing due to unforseen circumstances such as recently divorced. I am very new to internet.
I thank those who can be of assistance.
Regards
Mae Wong
………….
just 1 Q..
who did YOU vote for?
pap or alternate?
please be HONEST…
your truthful answer might HELP or reject
your PLEAD…
kuku
why like that huh?
what is the previous elite doing huh?
just curious – if a normal worker were to have done the same, do you think the normal worker can sit at the same place for so longgg? and getting the so muchhh $alary?
now the new elite come in, wa so many things need to ‘clean up’..
just thinking, for the commoners that need rental flats previously, how are they being taken care of?
how these commoners survive?
aiya, price all houses to that in the 1980, all happy i think.. (affordable)
kuku
Unfortunately, Mr Khaw is no housing expert not economist. He is parachuted into the job so badly messed up that the clean-up is going to take up most of his time.
The current problems are too many…..as a result of the politically failed argument of ASSET ENHANCEMENT that not only deluded ordinary Singaporeans and lured them into a false sense of comfort and “wealth-being”, but also misled the PAP into believing it themselves.
I have no exact answers to the present state of affairs, and I dont think Mr Khaw has any for the time being as he reworks the models of scenarios and which will work out for Singapore. The fact is, we are in a mess of a housing policy.
Everything looks good on the outside, but quite rotten on the inside. Problem for Mr. Khaw…is where to start. Forget asset enhancement for the time being…and start working on ASSET PROTECTION….around which the possible solutions may emerge.
more reanted flats needed for temporary hse removal, not only for the poor, divorcee, single, and em services employee..more, more, more but not (bear) in my estate of flat..