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Why are less applying for BTO?

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By Leong Sze Hian

I refer to the article “Slower take-up for build-to-order flats in Yishun” (ST, Feb 8).

Source: ST

The article states that “the two projects at Yishun, featuring 1,548 flats ranging from two-room to five room units, got 1.8 times as many applicants as there were flats on offer…this showing pales in comparison to a December BTO launch for Punggol Topaz that received six times more applicants than there were flats on offer”.

Well, does that mean that the flats’ take-up rate has dropped by 70 per cent?

One reason to explain why the take-up rate has slowed may be that Singaporeans are realizing that the ever increasing BTO flat prices may not be affordable.

In the last three years, whilst HDB prices sky-rocketed, the real median wage growth registered in 2008 and 2009 was negative and clocked only 0.5 per cent last year.

Rising cost of living

So, your income is not going up, and yet the cost of living continues to accelerate. For example, the average surgery bill in six of the seven public hospitals increased by at least 50 per cent to as much as double over the last four years. In addition, you also have to take into account the rising electricity tariffs, increase in public transport fares, child-care fees, university fees, etc.

In such an environment, wouldn’t you think twice before committing to a flat purchase?

The uncertain future

When your flat comes in about five years time, wouldn’t you be afraid that your circumstances may change such that you may not be able to afford the flat, not to mention the risks and uncertainties of job losses, pay cuts, illness, etc, over a 30-year mortgage loan?

Experiencing a problem getting a loan?

Another reason why less people may be applying for the flats may be also tied with the new rule on a second HDB concessionary loan.

How many people can cough up 50 per cent of the cash profits from their last HDB flat sold, regardless of how long ago, and also have their entire CPF utilized plus accrued interest from the previous flat to pay for the new flat?

No demand for two-room flats?

With reference to the statement “The two-room units were the only ones that were under subscribed, with just 138 applicants for the 192 units available,” one of the primary reasons may be the $2,000 household income ceiling eligibility which has not changed for many years, whilst the two-room price has escalated to the typical selling price of $105,000 as of date.

After the HDB announced on 3 March 2006, after it had stopped building two-room flats in the early 1980s, that it would resume the building of the flats from June 2006, the average price of a two-room flat in November 2007 in Compassvale Beacon (Sengkang), was only $78,000 for example.

I estimate that the prices of two-room BTO flats may have increased by about over 30 per cent over the last four years or so. Since two-room flats are the cheapest option for lower-income Singaporeans, why have their prices been allowed to increase by so much?

If your household income is below $2,000, you may be finding it hard to make ends meet in the first place.

So, with the lower income group’s arguably greater incidence and fear of job security, declining wages (over the last decade, it is estimated that 30 per cent of workers have had negative real wage growth), rising cost of living, etc, would you commit to a flat purchase?

Cross referencing to the article “Most two-room BTO flats taken up eventually” (ST, Feb 8) which said that “The Housing Board explained that this happens as buyers who first pass up on these one-bedroom units for their lack of size eventually buy them when they realise these units can still meet their needs”, some of these eventual buyers may be those who were forced to vacate HDB rental flats because their incomes had gone up, or those who failed to get a bigger BTO flat after applying umpteen times etc, who did not even think about applying for a two-room in the first place.

Is it really affordable?

According to the HDB’s web site, “Affordability of a Typical Flat”, Applicants’ Median Household Income for two-room is $1,400.

If half of the two-room applicants’ household income was less than $1,400, how on earth can they afford to buy anything, including a flat?

Using $260 as the typical monthly installment for a 30-year loan, after the first-timers’ $40,000 eligible additional CPF housing grant (which is the highest possible grant for those with income of not more than $1,500; applicants must also have been in continuous employment over the last 24 months at the date of the flat application), at 19 per cent installment to income ratio which then seems to suggest that flats are affordable, how then is a family struggling with $1,400 a month can afford to squeeze $260 out from their already miserably low income to buy a flat?

Down-payment problems

Finally, many lower-income households may not even be able to come up with the initial 10 per cent down-payment for the flat.

Also, if you are not eligible for a HDB concessionary loan, your down-payment will be increased to 20 per cent from 20 February 2010 for HDB bank loans.

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Current Affairs

Ng Eng Hen: Dust clouds likely caused armoured vehicle collision during Exercise Wallaby

Dust clouds limiting visibility likely contributed to the collision between two Hunter vehicles during Exercise Wallaby, Defence Minister Ng Eng Hen explained in his parliamentary reply. 12 servicemen sustained mild injuries, but safety measures prevented more serious outcomes. A formal investigation is ongoing to ensure further safety improvements.

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SINGAPORE: Low visibility caused by dust clouds was identified as the likely cause of the collision between two Hunter armoured fighting vehicles (AFVs) during Exercise Wallaby last month, Defence Minister Ng Eng Hen said in a written parliamentary response on Tuesday (15 October).

The incident, which occurred in Queensland, Australia, on 24 September 2024, resulted in mild injuries to 12 servicemen.

Dr Ng’s statement was in response to a parliamentary question from Mr Dennis Tan, Workers’ Party Member of Parliament for Hougang SMC.

Mr Tan asked for details on the accident, specifically its cause and whether any lessons could be applied to enhance training and operational safety within the Singapore Armed Forces (SAF).

The collision took place during a night-time movement of Hunter AFVs at the Shoalwater Bay Training Area.

The vehicles were returning to base when one rear-ended another. Dr Ng explained that the dust clouds generated by the AFVs’ movement significantly impaired visibility, might likely contributing to the accident.

The 12 affected servicemen sustained mild injuries and were promptly taken to the nearest medical facility.

None of the injuries required hospitalisation, and all 12 servicemen were able to rejoin their units for training the next day.

According to the minister, adherence to safety protocols—such as wearing seat belts and protective gear—played a crucial role in limiting the injuries to mild ones.

Following the incident, a safety pause was immediately implemented, with all drivers being reminded to maintain proper safety distances, especially when visibility was compromised.

Troops were also reminded to adhere strictly to safety protocols, including the proper use of safety equipment, Dr Ng added.

The safety lessons from the incident were shared not only with the affected units but also with other participating groups in the exercise, as well as units back in Singapore, through dedicated safety briefings.

Mr Tan also asked about the broader implications of the incident. In his response, Dr Ng said that a formal investigation had been launched in accordance with SAF’s safety incident protocol.

The investigation aims to assess the circumstances more thoroughly and identify any further measures that could be taken to enhance safety.

Dr Ng shared that recommendations arising from the investigation will be implemented where necessary.

Exercise Wallaby is SAF’s largest unilateral overseas exercise, and the 2024 edition began on 8 September, running until 3 November.

The exercise involves approximately 6,200 personnel, including 500 operationally ready national servicemen.

The exercise has been conducted at Shoalwater Bay Training Area in Queensland since 1990, and it is a key part of SAF’s overseas training program.

The Hunter AFV, one of the vehicles involved in the collision, is a state-of-the-art platform jointly developed by the Defence Science and Technology Agency, the Singapore Army, and ST Engineering.

It replaced the SAF’s aging fleet of Ultra M113 AFVs in 2019, which had been in service since the 1970s. The Hunter is equipped with advanced features, including a 30mm cannon, a 76mm smoke grenade launcher, and an automatic target detection and

tracking system designed to enhance operational effectiveness. It is also capable of traveling at increased speeds and covering longer distances, making it a versatile asset for the SAF.

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Current Affairs

Government to “carefully consider” Lee Hsien Yang’s demolition application for 38 Oxley Road

The Singapore Government will “carefully consider” Mr Lee Hsien Yang (LHY)’s application to demolish the house at 38 Oxley Road. LHY announced his intent on Tuesday morning following the recent death of his sister, Dr Lee Wei Ling, reaffirming his commitment to honour his parents’ wish for the house’s demolition.

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The Singapore Government has indicated that it will “carefully consider” Mr Lee Hsien Yang’s (LHY) application to demolish the family home at 38 Oxley Road.

LHY, the youngest son of Singapore’s founding Prime Minister, the late Lee Kuan Yew (LKY), announced his intention to apply for the demolition in a Facebook post on 15 October 2024, following the death of his sister, Dr Lee Wei Ling, on 9 October.

The announcement marks a significant development in the ongoing saga over the fate of the historically significant property, which has been at the heart of a family dispute since LKY’s passing in 2015.

In his will, executed in December 2013, LKY expressed his desire for the house to be demolished “immediately after” Dr Lee moved out of the property. Dr Lee, a prominent neurologist, had been the last remaining resident of the house.

LHY reaffirmed his commitment to carrying out his father’s wishes, stating, “After my sister’s passing, I am the only living executor of my father’s estate. It is my duty to carry out his wishes to the fullest extent of the law.”

He added that he would seek to build a small private dwelling on the site, which would be “held within the family in perpetuity”.

LHY also referenced his brother, Senior Minister Lee Hsien Loong’s (LHL) remarks in Parliament in 2015, when he was Prime Minister, stating that upon Dr Lee’s passing, the decision to demolish the house would rest with the “Government of the day.”

In response to media queries regarding LHY’s announcement, a spokesperson for the Ministry of National Development (MND) acknowledged the intended application and emphasised that the Government would “carefully consider issues related to the property in due course”.

The spokesperson also highlighted that any decision would need to balance LKY’s wishes, public interest, and the historical value of the house.

The house at 38 Oxley Road, where key decisions about Singapore’s path to independence were made, has been a focal point of public and political discussion.

The future of the house became contentious in 2017 when LHY and Dr Lee publicly accused their elder brother, LHL, of trying to preserve the house against their father’s wishes for political reasons.

LHL denied the accusations, issuing a Ministerial Statement in Parliament, where he also raised concerns over the preparation of their father’s final will. He clarified that he had recused himself from all decisions regarding the property and affirmed that any government action would be impartial.

In 2018, a “secret” ministerial committee, which was formed in 2016 to study the future of 38 Oxley Road, proposed three options: preserving the property and designating it as a national monument, partially demolishing the house while retaining the historically significant basement dining room, or allowing complete demolition for redevelopment. LHL accepted the committee’s conclusions but stated that no immediate decision was necessary, as Dr Lee was still living in the house.

In a statement conveyed by LHY on behalf of Dr Lee after her passing, she reiterated her strong support for her father’s wish to demolish the house. “My father, Lee Kuan Yew, and my mother, Kwa Geok Choo, had an unwavering and deeply felt wish for their house at 38 Oxley Road to be demolished upon the last parent’s death,” the statement read.

She added, “He had also appealed directly to the people of Singapore. Please honour my father by honouring his wish for his home to be demolished.”

Despite selling the house to LHY at market value in 2015, LHL’s stance regarding the house’s preservation became a public issue, especially after the family disclosed that the Government had raised concerns about reinstating the demolition clause in the 2013 will. The ministerial committee had reviewed the matter, but a final decision was deferred until now.

The fate of 38 Oxley Road remains to be seen, but the Government’s decision will likely have lasting implications for the legacy of the Lee family and the conservation of Singapore’s historical landmarks.

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