Ignore what she misunderstood from the stuff reported in the media, he wrote. What he told Parliament, Khaw said, was that there had been many calls for HDB to “return to basics”, for example to “return to the past when flats could only be sold to HDB, and not in the open market”. Such a call would have major impact on existing flat owners like the lady in question.
Next he segued on to confirm that he does plan to see how they can come up with a new housing option which can be a lot cheaper than today’s BTO price. Meaning new flats that are priced at a level equivalent to 4 years of median household income e.g. a household with gross income of $4,100 should be able to buy a 4-room flat for $196,800 instead of the $300,000 price tag per last quarter's BTO offering. Assuming 30 percent of income used to service the mortgage, one can look forward to 12+ instead of horrendous 30 year housing loans.
Naturally, the new low-cost housing option must come with restrictions, and the minister mentioned some such restrictions as proposed by fellow MPs: longer minimum occupation period, shorter lease and disbarment from resale in the open market. Obviously, as Khaw pointed out, such an option will only apply to the new buyers, and will not apply to existing flat owners like the Queenstown lady.
So why did Khaw assure her that her dream (realise her retirement fund by flipping her flat for a fat profit) is safe, congratulate her on "how the HDB policies have benefited her", and that she could now look forward to a new BTO flat? That would only be possible if the new buyers are daft enough to reject the lower priced new flats and opt for the higher priced old flats. Or she downgrades from a 4-room $300,000 flat to a 2-room $100,000 shoebox. Khaw seems to think one can have the pie and still eat it. He seems to have two sets of stories: one for those struggling to afford a fixed roof, and another for those with second properties to sell or to rent.
HDB data indicates that 14,600 whole flats approved for subletting in 2Q2007 have tripled to 43,508 in 4Q2012. This is one bubble that should be burst. The poor ones seem to be subsidising the better off. If the minister thinks the inequity is tenable, he must still be in dreamland.
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Lost track of the many tweaks made by HDB and not sure what is fair and unfair now. Gave up long ago.
ReplyDeleteAll I know is this. New Pope Francis is someone who takes public bus everyday to work. Someday, I may become a pope too. There's hope.
I also support World Sleep Day leh.
ReplyDeleteAt 1 million a pop of resale price, he always claim those are outliers. Khaw should hire those PR girls in their cute pj to give out pamphlets at HDB showflat to promote - sleepless no more!
Methinks the other signage "Say No to Half Awake" is very useful in the next May Day protest.
Most MPs have two or more condos collecting rentals. They will implement policies that will help them to collect even more rentals.
ReplyDeleteFor a start, why don't the Minister come clean on the hidden profit margin that HDB has been instructed to impose on BTO flats buyers ?
ReplyDeleteIf there is indeed no hidden profit margin, then start with the basics like show us the actual construction cost paid to contractors and how the figures end up from an average S$130K per unit is worked up to be sold for S$300K~S$400K per unit ?
Or if there is really a raid on our reserves as insisted by his predecessor, show us the proof of the actual land cost being charged for each unit ? Why can't our PAP leaders, for heaven's sake, show us their sincerity by being transparent with the true cost figures instead of keep saying they are heavily subsidised ?
Don't tell me none of our PAP leaders can be more trustworthy than what they alleged CSJ to be as far as honesty is concerned ?
Just search BTO on wikipedia. Click the history section. There is a chunk of data, including contract sum and total units built. Average cost of HDB 4 room flat is between $100-150.000. Someone removed it from the article. Someone should restore it back since these are factual data.
DeleteFrom Wikipedia
DeleteAwarded BTO main contractors tender, each construction costs per 5-room, 4-room, 3-room & 2-room units are likely to be average about $160,000, $120,000, $80,000 & $40,000 (based on 2004 cost) respectively. This may also include the cost of sub-contractors and construction of multi-storey carpark, Lifts, Electrical Substation (ESS), Child-care center, Children Playground, Fitness Corner, Linkway Shelter & Open Space landscape etc. Construction Excellence Award - CEA between 2001 to 2006
Aiyoh, just look at this link lah:
Deletewww.bca.gov.sg/keyconstructioninfo/others/dls_intl_1q12.pdf
It shows the cost of construction, as laid out on a government website, based on tenders. The construction cost of a 100 sq m standard apartment in 2012 was US$167,000 or about S$210,000.
Hmm... isn't this "new low-cost housing option" SDP's recent idea?
ReplyDeleteThat lady from Queenstown did her sums, we were told.
ReplyDeleteJust how much she believes she will pocket from selling her old flats and buying a new BTO, depended on how much she paid decades ago and what type of BTO and where she envisaged.
Assuming she will make a "profit" of S$250K, will she be comfortable with that amount for her retirement?
Will she need to fund her children's BTO purchase or Re-sale flats purchase ?
If things do not change for the better, and that means going back to basics, I submit that she will be in for a shock when all the numbers cone in.
Luck lady!
DeleteThink about what the buyer have to encounter for a re-sale HDB
1) Old flats
2) The insane valuation and
3) than there is this thing call COV
4) there are these pesky agents, whose mantra is
" we already hv an offer for 50k ,owner is looking for more can you offer more "
Buyer needs boundless engery ,patience n super negotiating skills
Very Intimidating
IF Khaw Boon Wan is sincere
First n foremost he must get rid of this disease call COV
Yes, million dollar scholars and ministers are now stealing from the SDP's ideas, without giving credit!
ReplyDeleteBut as usual. they want the cake of the housing bubble to perpetuate (and banks to continue the credit bubble) and they want to eat the cake and be seen to be doing "something". Don'lt be surprise they build the new non-open market flats in recently reclaimed cemetries or at Ama Keng at the end of Lim Chu Kang cemetry and directly over the F16 flight routes with no amenities, no buses, no schools, and 30 year lease. You want 4 room flat at $196k instead of BTO price of $450k, then join the queue that stretches around the HDB Hub like hello kitty mad rush lor! If not then pony up your half a million and buy from the rich old auntie who regularly frequent MPS with short ass cow la!
dun you guys know that cow farts is a major contributor to global warming?
ReplyDeleteSorry I need to pass some votes to them?
ReplyDeleteWhatever happens Khaw and his colleagues will not lose any sleep. Does anyone wonder why trust in the government has gone out of the window and will never be regained despite the cautious optimism of Catherine Lim?
ReplyDeleteFool me once shame on you, fool me twice shame on me. The PAP should realise that they cannot continue to fool citizens all the time and getting away with it. If GE 2011 and BE 2012 in Hougang and Punggol East does not wake them up, too bad. They do need someone to slap them harder come 2016.
DeleteGive 2 years notice for those with a private house and a HDB that they need to dispose of one within that time frame.
ReplyDeleteImmediately more properties will come into the market and HDB burden to build more flats in the short term to correct the supply/demand situation.
PAP cabinet seems to have a lot of grandfathers like the Holy cow.
ReplyDeleteThat's why we keep hearing so many grandfather's story.
More bedtime stories and fairy tales from the cow man to put us to sleep. Udderly shameless attention seeker. Welcome to la la land.
ReplyDeleteLooks like the PAPigs look set to divide the country further into those haves & have-nots. Just look at our restructured hospitals where the rich ones can jump the queues if they can afford to pay as private patients. They are now doing it with cars and soon it will be our public flats.
ReplyDeleteThose in power and their fat friends/relatives are no fools. Prior to Japan's Lost Two Decades, the rich Japanese would routinely sprinkle gold dust on their sushi. They know what's coming; but so long as they and their fat friends/relatives get out before the masses, they will be fine and obscenely rich.
ReplyDeleteI have nothing against people born of extreme physical proportions lengthwise, but why is it that peanut pole PM always appoint atom-sized con-men to blow property bubbles? first a horse ma who keep insisting HDB supply was more than adequate and heavily subsidized, now a cow who insist there is no bubble and now trying to copy SDP's ideas when the masses revolt? Of course all this while they and cronies enjoy quietly selling their streets of bungalows (good class and not so good ones) and nassim road-like units all bought long before the bubble blowing started. What is the difference between the village chief selling forcefully obtained farms in Guangdong Wukan and this form of papig cronyism?
ReplyDeleteThis "Khaw" has little beef. It's tainted with "horse" meat.
ReplyDeletethe only reason why prices are so ridiculous today is because of ppl with ridiculous mentalities like the lady from queenstown. that hdb prices will be up and up forever and they depend their futures on it. dats the only reason why whether hdb prices is $100 or $1,000,000,000, ppl will still pay. i have no sympathy for such ppl. i hope the market crashes. blood have to be shed and ppl have to learn the hard way..
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ReplyDelete