THEME: Public Housing - A Home for Every Singaporean

HDB's housing mission was originally premised on nation-building. Public flats were initially sold on a "construction cost-based" pricing policy to enable every citizen to own a HDB flat. Later, "land-cost" pricing was added and this eventually changed to "market pricing" which is based on resale prices. This last pricing policy has led to prices spiraling higher and higher, making owning a HDB flat out of reach for many young citizens today. 

These pricing changes ride on the back of promises to enhance assets and HDB's rigorous innovations to create public flats that are more like private apartments. These innovations moved HDB into the realm of real estate business, selling land to private developers. Consequently, a HDB flat can now cost more than a private apartment.

If nation-building is still HDB's sacred mission, then HDB has a duty to ensure that Singaporeans are the only ones who are eligible to buy HDB flats. If this is no longer its mission, then it should no longer be called the Housing Development Board.

As a public housing agency, HDB need not be concerned at all with the housing needs of foreigners and permanent residents. If foreigners and permanent residents choose to own their flat, they should look at private flats and not compete with Singaporeans for public flats which are built with taxpayers money.

HDB flats should also not be approved for use as dormitories for foreign workers or leased by HDB directly to foreigners or permanent residents.

HDB flats should not be acquired or rented to any public or private corporation, even if there are excess public flats. Excess flats ought to be rented out to meet the needs of Singaporeans who do not have the means to pay for a flat or are not yet ready to do so. In particular, 3- and 4-room rental flats should be made available to young couples, including single parents, who need a place with adequate living space to start a family and to raise children . 

If these measures are kept in place, there will be no need for HDB to keep building new flats. There will be more than enough flats if permanent residents are no longer allowed to own any public flat. HDB could revert to construction-cost pricing for new flats. In order not to impact upon the prices of existing flats which were bought based on market-pricing, these new flats that are sold more cheaply should not be re-saleable in the secondary market and must be re-sold to HDB when they are no longer needed.

Private developers are clearly motivated by profits. HDB should not sell land to private developers to build public flats and then disclaim any responsibility for building defects or non-compliance with building specifications. After-all, these flats are still sold with HDB's minimum occupancy requirement for resale which do not exist for private flats. If HDB chooses to disclaim such responsibility, then it should cease selling land to private developers. 

These are just some ideas. There are probably more and maybe better ideas that others may be able to come up with. Whatever it may be, we should not stop thinking of ways to improve our public housing predicament. May every citizen who needs a public flat be able to afford one without paying for it with an arm or a leg.

THEME: Housing: My Flat, My Home

In the 1970s', a 3-room HDB flat in Singapore costs much less than $20,000 and buyers could pay up their mortgage in 10 years. They could also afford to buy a car. 

Today, depending on location, a 3-room flat costs more than S$ 300,000. That is a whopping 15 times more and buyers are paying off their mortgages over 25-30 years because their incomes have not risen that dramatically. And with COE prices in the tens of thousands of dollars, owning a car may mean struggling to pay for it over 10 years.

There are re-sale HDB flats that have crossed the million dollar mark. Owners of public flats which they bought in the 1970s' may rejoice over the fact that the prices of their flats have appreciated astronomically in value, especially during the era of the state's "asset enhancement" policy in the 1990s. However, if they wish to realise their capital gains by selling their flats, they may have difficulty even buying a smaller flat because the prices of all other flats, big and small, have also appreciated astronomically.

It is a sad state of affairs that the prices of public flats can go beyond the reach of many first-time flat owners. Many of them are young couples waiting to settle down. They have inherited the tradition set by our first generation HDB flat owners of getting a flat first before getting married. Without a flat, their plans to have children are also delayed. And those who bought their highly priced flats are facing a lifetime of mortgage repayments with two sets of income.

The costs of public housing has become a hot button issue for a country that began independence 50 years ago with a sacred mission by the leaders to build as many low-cost housing units as possible. Nowadays, HDB's housing policy seems no longer targeted at providing home ownership to low income families. Although public housing still falls within the purview of HDB, there are specially built flats and executive flats. And private developers are tendering land from HDB to build flats which are priced commercially.

How should we be looking at our public housing problems and what can be done about them? I will discuss this in my next blog.

THEME - Housing: $28,000 3-room HDB flat comparing to $350,000 similar flat nowaday

He was standing there as though he was rooted to the ground. 71 year-old Mr. Sia suffered a stroke in 2008, just before he retired as a PUB technician. He still has difficulty walking and tries his best to move about as much as he could everyday.

We spoke after I gave him a packet of vegetarian beehoon. He told me he had seen his Member of Parliament but was not happy with the outcome. He then went on to share with me some of his deepest concerns. When he bought his 3-room flat in which he still lives, he was drawing a salary of $1,600. His flat cost him $28,000 and he was able to pay off his mortgage in 10 years. He laments that his children will not enjoy the same comfort level that he had. Even with a salary of $3,000, his eldest daughter is unable to buy a similar flat, which now costs almost $350,000.

His 3 children, all daughters, are living with him. Owing to the high costs of living, they are not able to give him much monthly allowance. He regrets having given up his pension scheme when he was a civil servant. He puts it down to not having been given a choice at all and even then with the CPF route , he has monies retained in his CPF account which he could not withdraw.

He also talked about how some people would take advantage of do-gooders in his neighbourhood. Once he wanted to help someone who asked for money. When he took out $2, the man refused to accept and demanded for $10. He was completely disheartened by the experience which was echoed by another elderly man whom I spoke to earlier.

Mr. Sia tried to move his legs after talking to me and found them immobilised. After taking my advice to do some leg stretching, he was able to stagger slowly in the direction of his flat. Watching him walk, there is no doubt that good health is afterall, one's most precious possession in old age.