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Price of 4-room HDB flats in new town sold at $27,000 and not $40,000 in 1980

Deputy Prime Minister Lawrence Wong addressed public housing concerns at the May Day Rally 2023, claiming that new HDB flats are more affordable now than in 1980.

However, historical data reveals a different story, suggesting that new flats were more affordable in the past.

The Workers’ Party argues that the focus should be on first-time buyers’ median income, rather than national median income.

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SINGAPORE — At the May Day Rally 2023 on Monday (1 May), Deputy Prime Minister Lawrence Wong said that he and his 4G team are fully committed to looking after workers.

“In these dark times, this is my promise to you,” said Mr Wong. “Come what may, we will always be there with you, for you, and we will always have your back.”

At the rally, Mr Wong also addressed the concerns in public housing. He asked Singaporeans not to look just at the headline price of a Build-To-Order (BTO) flat from the Housing Development Board (HDB), but also to consider how prices relate to income and the proportion of income needed to service the housing loan.

The Prime Minister-in-waiting gave an example of a 4-room BTO flat in a new town that cost about $40,000 in 1980.

Median household income then was around $900, and a typical household would use about a quarter of its income to service the loan, he said.

Today, the price of a 4-room BTO flat in a non-mature estate like Bukit Batok costs about $350,000, Mr Wong added. While the price of the flat has risen nearly ten times, so has median household income from $900 to $9,000, he claims.

That is to say, based on Mr Wong’s figures, the price-to-income ratio of a 4-room new flat in a new town was 3.7 (40,000 / (900 x 12)) back in 1980 while it was 3.2 (350,000 (9,000 x 12)) currently in a non-mature estate, implying that new HDB flats are even more affordable now compared to 1980.

However, a quick check on some of the old news articles back in the 1980 days revealed a different story.

For example, in a November 1978 news article, then MP for Serangoon Garden, Dr Lau Teik Soon helped in the balloting of 1,858 new flats in Ang Mo Kio, a newly established estate at the time. Those HDB flats comprised 1,296 3-room and 562 4-room flats. Prices reported in the article were between $15,800 to $24,500.

That is to say, a new 4-room HDB flat at Ang Mo Kio in late 1978 was selling for only $24,500 by HDB.

A guide on buying new HDB/HUDC flats was also published in Jun 1979. It mentioned that HDB would increase its prices by 15 per cent starting 1 Jul 1979.

As can be seen, in those times, a new 4-room HDB flat was sold at $27,100 in a new town ($23,500 before the increase). The household income ceiling to buy a 4-room flat was also raised to $1,500.

Using the $900 median income mentioned by Mr Wong, the affordability of HDB flats in a new town at the time, as measured by the price-to-income ratio, was calculated to be only 2.5. This is much less than the current calculated ratio of 3.2 for the Bukit Batok example.

According to Demographia International Housing Affordability, a house-price-to-income (HPI) ratio of 3 and below would be considered “affordable” while a ratio of 3.1 to 4.0, “moderately unaffordable”. From 4.1 to 5.0, it would be classified as “seriously unaffordable” and, 5.1 and above, “severely unaffordable”.


Hence, one can conclude that a new 4-room HDB flat in the new towns back in the 1980 would be considered “affordable” even at $27,100 while the Bukit Batok example selling at the current $350,000 mentioned by Mr Wong would be considered “moderately unaffordable”.

Median income based on first-time applicants rather than national median: Workers’ Party

During the debate on affordable and accessible public housing in Parliament this February, Mr Leon Perera, Member of Parliament for Aljunied GRC, highlighted the Workers’ Party’s position: targeting a HPI of three, or close to three, for BTO flats in non-mature estates.

This stance was formulated based on updated information provided by Sengkang Member of Parliament Mr Louis Chua, in response to a Parliamentary Question. The data revealed that first-time BTO flat applicants had a median household income of $7,700 per month.

WP contends that it is more pertinent to focus on the median income of first-time buyers, rather than the national median household income. Consequently, the party believes that the HPI target for non-mature BTO flats should be three, or close to three, in accordance with the income of first-time homebuyers.

If a household income of $7,700 per month as in the case for the average first-time BTO applicant, is used in Mr Wong’s example of a $350,000 HDB flat, the HPI would be 3.8 inching nearer to the Seriously Unaffordable mark.

It should also be noted that the 25th percentile of first-time BTO flat applicants in 2022, earn $5,600. This means that the HPI for these applicants in the case of the Bukit Batok example would be 5.2, which classifies as severely unaffordable.

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Chee Soon Juan questions Shanmugam’s $88 million property sale amid silence from Mainstream Media

Dr Chee Soon Juan of the SDP raised concerns about the S$88 million sale of Mr K Shanmugam’s Good Class Bungalow at Astrid Hill, questioning transparency and the lack of mainstream media coverage. He called for clarity on the buyer, valuation, and potential conflicts of interest.

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On Sunday (22 Sep), Dr Chee Soon Juan, Secretary General of the Singapore Democratic Party (SDP), issued a public statement on Facebook, expressing concerns regarding the sale of Minister for Home Affairs and Law, Mr K Shanmugam’s Good Class Bungalow (GCB) at Astrid Hill.

Dr Chee questioned the transparency of the S$88 million transaction and the absence of mainstream media coverage despite widespread discussion online.

According to multiple reports cited by Dr Chee, Mr Shanmugam’s property was transferred in August 2023 to UBS Trustees (Singapore) Pte Ltd, which holds the property in trust under the Jasmine Villa Settlement.

Dr Chee’s statement focused on two primary concerns: the lack of response from Mr Shanmugam regarding the transaction and the silence of major media outlets, including Singapore Press Holdings and Mediacorp.

He argued that, given the ongoing public discourse and the relevance of property prices in Singapore, the sale of a high-value asset by a public official warranted further scrutiny.

In his Facebook post, Dr Chee posed several questions directed at Mr Shanmugam and the government:

  1. Who purchased the property, and is the buyer a Singaporean citizen?
  2. Who owns Jasmine Villa Settlement?
  3. Were former Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong informed of the transaction, and what were their responses?
  4. How was it ensured that the funds were not linked to money laundering?
  5. How was the property’s valuation determined, and by whom?

The Astrid Hill property, originally purchased by Mr Shanmugam in 2003 for S$7.95 million, saw a significant increase in value, aligning with the high-end status of District 10, where it is located. The 3,170.7 square-meter property was sold for S$88 million in August 2023.

Dr Chee highlighted that, despite Mr Shanmugam’s detailed responses regarding the Ridout Road property, no such transparency had been offered in relation to the Astrid Hill sale.

He argued that the lack of mainstream media coverage was particularly concerning, as public interest in the sale is high. Dr Chee emphasized that property prices and housing affordability are critical issues in Singapore, and transparency from public officials is essential to maintain trust.

Dr Chee emphasized that the Ministerial Code of Conduct unambiguously states: “A Minister must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

He concluded his statement by reiterating the need for Mr Shanmugam to address the questions raised, as the matter involves not only the Minister himself but also the integrity of the government and its responsibility to the public.

The supposed sale of Mr Shamugam’s Astrid Hill property took place just a month after Mr Shanmugam spoke in Parliament over his rental of a state-owned bungalow at Ridout Road via a ministerial statement addressing potential conflicts of interest.

At that time, Mr Shanmugam explained that his decision to sell his home was due to concerns about over-investment in a single asset, noting that his financial planning prompted him to sell the property and move into rental accommodation.

The Ridout Road saga last year centred on concerns about Mr Shanmugam’s rental of a sprawling black-and-white colonial bungalow, occupying a massive plot of land, managed by the Singapore Land Authority (SLA), which he oversees in his capacity as Minister for Law. Minister for Foreign Affairs, Dr Vivian Balakrishnan, also rented a similarly expansive property nearby.

Mr Shanmugam is said to have recused himself from the decision-making process, and a subsequent investigation by the Corrupt Practices Investigation Bureau (CPIB) found no wrongdoing while Senior Minister Teo Chee Hean confirmed in Parliament that Mr Shanmugam had removed himself from any decisions involving the property.

As of now, Mr Shanmugam has not commented publicly on the sale of his Astrid Hill property.

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Redditors question support for PAP over perceived arrogance and authoritarian attitude

Despite Senior Minister Lee Hsien Loong’s warning that slimmer electoral margins would limit the government’s political space “to do the right things”, many Redditors questioned their support for the ruling PAP, criticising its perceived arrogance. They argued that SM Lee’s remarks show the party has ‘lost its ways’ and acts as if it alone can determine what is right. Others noted that the PAP’s supermajority allows for the passage of unfavourable policies without adequate scrutiny.

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In a recent speech, Senior Minister Lee Hsien Loong warned that “if electoral margins get slimmer, the government will have less political space to do the right things.”

Mr Lee, who served as Prime Minister for 20 years, highlighted the risks associated with increasingly competitive politics.

“It will become harder to disregard short-term considerations in decision-making. The political dynamics will become very different,” he stated during his speech at the Annual Public Service Leadership Ceremony 2024 on 17 September.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed.

SM Lee pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens.

As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.”

He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

Critique of PAP’s Arrogance and Disconnect from Singaporeans

The People’s Action Party (PAP) experienced a notable decline in its vote share during the 2020 General Election, securing 61.24% of the votes and winning 83 out of 93 seats, a drop from 69.9% in 2015.

A significant loss was in Sengkang GRC, where the PAP team, led by former Minister Ng Chee Meng, was defeated by the Workers’ Party (WP).

In discussions on Reddit, some users questioned why they should support the ruling PAP, criticising the party’s perceived arrogance.

They pointed out that SM Lee’s recent remarks illustrate that the party has strayed from effectively serving Singaporeans and seems to believe it has the sole authority to decide what is right.

Others highlighted that the PAP’s super-majority in Parliament enables the passage of unfavourable policies without sufficient scrutiny.

One comment acknowledged that while many older Singaporeans remain loyal to the PAP due to its past achievements, younger generations feel the party has failed to deliver similar results.

There is significant frustration that essentials like housing and the cost of living have become less affordable compared to previous generations.

The comment emphasised the importance of the 2011 election results, which they believe compelled the PAP to reassess its policies, especially concerning foreign labor and job security.

He suggested that to retain voter support, the PAP must continue to ensure a good material standard of living.

“Then, I ask you, vote PAP for what? They deserve to lose a supermajority. Or else why would they continue to deliver the same promises they delivered to our parents? What else would get a bunch of clueless bureaucrats to recognise their problems?”

Emphasising Government Accountability to the Public

Another Redditor argued that it is the government’s responsibility to be accountable to the people.

He further challenged SM Lee’s assertion about having less political space to do the right things, questioning his authority to define what is “right” for Singapore.

The comment criticised initiatives like the Founder’s Memorial and the NS Square, suggesting they may serve to boost the egos of a few rather than benefit the broader population. The Redditor also questioned the justification for GST hikes amid rising living costs.

“Policies should always be enacted to the benefit of the people, and it should always be the people who decide what is the best course of action for our country. No one should decide that other than us.”

The comment called for an end to narratives that present the PAP as the only party capable of rescuing Singapore from crises, stating that the country has moved past the existential challenges of its founding era and that innovative ideas can come from beyond a single political party.

Another comment echoed this sentiment, noting that by stating this, SM Lee seemingly expects Singaporeans to accept the PAP’s assumption that they—and by extension, the government and public service—will generally do the “right things.”

“What is conveniently overlooked is that the point of having elections is to have us examine for ourselves if we accept that very premise, and vote accordingly.”

A comment further argued that simply losing a supermajority does not equate to a lack of political space for the government to make the right decisions.

The Redditor express frustration with SM Lee’s rhetoric, suggesting that he is manipulating public perception to justify arbitrary changes to the constitution.

Concerns Over PAP’s Supermajority in Parliament

Another comment pointed out that the PAP’s supermajority in Parliament enables the passage of questionable and controversial policies, bypassing robust debate and discussion.

The comment highlighted the contentious constitutional amendments made in late 2016, which reserved the elected presidency for candidates from a specific racial group if no president from that group had served in the previous five terms.

A comment highlighted the contrast: in the past, the PAP enjoyed a wide electoral margin because citizens believed they governed effectively. Now, the PAP claims that without a substantial electoral margin, they cannot govern well.

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