Latka 1st Gear February 16, 2011 Share February 16, 2011 Feb 16, 2011 Three Budget wishes Relook price benchmark for first flats AS THE father of a daughter who will be entering the market for a flat with her fiance for the first time, I wonder if the issue of housing affordability can be addressed if the Housing Board changes the way it sets prices. Currently, new HDB flat prices are benchmarked against resale transaction prices. This approach worked well in the past because it was aimed at solving a simpler situation reflecting organic population growth and housing upgrading. Today, while the first-time home market segment remains as robust as it was previously, the resale market has been hammered by a demand shock from a very sizeable segment of permanent residents. Given that the resale market and first-time segments have different dynamics, and as the prime policy concern is aimed at helping first-time buyers, should we now decouple the benchmarking of new HDB flat prices from resale prices? There may be alternative ways to set prices that can strongly couple with affordability - for instance, prices can be indexed to a multiple of, say, average starting salaries, or salaries of a percentile of taxpayers in the 25 to 30 age group. I am not sure if the idea is coloured by my daughter's dilemma, but many of my friends have also confided that they were forced to fork out hefty sums to help their children buy their first flats. I cannot see how this can be sustainable for future generations when our children's children come knocking. Chiang Shao Soong Wait long long loh. Our scholar mini star's job very easy to do one. So easy O level grad oso can do. One time say no need to build any more 2 and 3 rm flats, now start builing these units again to meet demand. No foresight, just do as situation deems fit. Who can't do this? As for prices, virtually asking mini stars to take pay cut. But the truth may be they need money to support their ponzi scheme. ↡ Advertisement Link to post Share on other sites More sharing options...
Rayleigh 6th Gear February 16, 2011 Share February 16, 2011 Feb 16, 2011 Three Budget wishes Relook price benchmark for first flats AS THE father of a daughter who will be entering the market for a flat with her fiance for the first time, I wonder if the issue of housing affordability can be addressed if the Housing Board changes the way it sets prices. Currently, new HDB flat prices are benchmarked against resale transaction prices. This approach worked well in the past because it was aimed at solving a simpler situation reflecting organic population growth and housing upgrading. Today, while the first-time home market segment remains as robust as it was previously, the resale market has been hammered by a demand shock from a very sizeable segment of permanent residents. Given that the resale market and first-time segments have different dynamics, and as the prime policy concern is aimed at helping first-time buyers, should we now decouple the benchmarking of new HDB flat prices from resale prices? There may be alternative ways to set prices that can strongly couple with affordability - for instance, prices can be indexed to a multiple of, say, average starting salaries, or salaries of a percentile of taxpayers in the 25 to 30 age group. I am not sure if the idea is coloured by my daughter's dilemma, but many of my friends have also confided that they were forced to fork out hefty sums to help their children buy their first flats. I cannot see how this can be sustainable for future generations when our children's children come knocking. Chiang Shao Soong Wait long long loh. Our scholar mini star's job very easy to do one. So easy O level grad oso can do. One time say no need to build any more 2 and 3 rm flats, now start builing these units again to meet demand. No foresight, just do as situation deems fit. Who can't do this? As for prices, virtually asking mini stars to take pay cut. But the truth may be they need money to support their ponzi scheme. That is the consequence of Market based pricing approach. Should have stick to Cost based pricing approach. HDB cannot reverse this pricing else ......I cannot imagine the consequences........the funeral business will bloom..... Link to post Share on other sites More sharing options...
Yeshe Turbocharged February 16, 2011 Share February 16, 2011 That is the consequence of Market based pricing approach. Should have stick to Cost based pricing approach. HDB cannot reverse this pricing else ......I cannot imagine the consequences........the funeral business will bloom..... not cannot be done, but alot of administration work to be done so as not to shortchange those who bought expensive in the past. This means some form of HUGE compensation per household. do u think gov will do tat? Link to post Share on other sites More sharing options...
Greatbirdlegend 1st Gear February 16, 2011 Share February 16, 2011 Kind of late in the game to be asking for a change in the rules? Link to post Share on other sites More sharing options...
Tigerwoods Turbocharged February 16, 2011 Share February 16, 2011 HDB flat pricing has evolved from a simple effective method to yarn ball of rocket science calculations, permutations, differentiation, integration etc. Frankly, if the pricing method were to stick to purely construction, materials and labour costs like in the 1970s, I think the price of each flat NOW will be like this : 3-rm flat = $80,000 4-rm flat = $100,000 5-rm flat = $120,000 DBSS flat = $170,000 Executive Condo = $300,000 Link to post Share on other sites More sharing options...
Unfair 3rd Gear February 16, 2011 Share February 16, 2011 Haiz, 8k a month does not go a long way anymore... Link to post Share on other sites More sharing options...
Maz0608 3rd Gear February 16, 2011 Share February 16, 2011 I think the Mr Chiang a bit naive lar! What is the implication if the gov reduce the price of new hdb to suit the group of young buyers now? More ppl will complained that their assets has reduced in value. Anyway, I thank my lucky stars that I had bought my home at a time that it is still rather affordable. Link to post Share on other sites More sharing options...
Joseph22 Turbocharged February 16, 2011 Share February 16, 2011 That is the consequence of Market based pricing approach. Should have stick to Cost based pricing approach. HDB cannot reverse this pricing else ......I cannot imagine the consequences........the funeral business will bloom..... Cost base also not good enough liao. the most corrupted industries in singapore is Construction. If any MIW minons here. please tell them to check on that idustries. makan more than the LTA pairs :angry: Link to post Share on other sites More sharing options...
Bystander50 5th Gear February 16, 2011 Share February 16, 2011 Didn't some minister mentioned that the BTO scheme is much better in managing demand and supply than the previous scheme? To me, it works only 1 way. Under-demand, HDB cancels off the BTO as seen in 2003/2004. But now when houses are in high demand, I don't see the BTO react accordingly. In some BTOs we are seeing a ratio of 1:6 to 1:12. Shouldn't more BTOs launches be made to bring the ratio down to at least 1:3? Link to post Share on other sites More sharing options...
Pokyman 1st Gear February 16, 2011 Share February 16, 2011 I think the Mr Chiang a bit naive lar! What is the implication if the gov reduce the price of new hdb to suit the group of young buyers now? More ppl will complained that their assets has reduced in value. Anyway, I thank my lucky stars that I had bought my home at a time that it is still rather affordable. Yes man, gahmen already said our HDB are assets. To change back to cost based pricing, a lot of people will jump. Radx confirm good biz But it is quite depressing when young couples cant afford their love nest. Back then i got my 5rm at SK for 220K, 5 yrs on, it could be sold for close to 450K! New ones at SK are now more than 300K. Couple of my younger coligs are trying to get new flats at queenstowm/dawson pl and a 4 rm is close to 500K... You cant blame them for choosing that "prime" location, what if they needed to be near parents to take care of kids? Gahmen cant blame us SGs when we dun have enough lovin' to boost the pop when we are bombarded by rising costs. In turn, we open our legs to welcome the FTs and we comprain.... prices are driven up and on and on, vicious cycle. Link to post Share on other sites More sharing options...
Gearoil 1st Gear February 16, 2011 Share February 16, 2011 Feb 16, 2011 Three Budget wishes Relook price benchmark for first flats AS THE father of a daughter who will be entering the market for a flat with her fiance for the first time, I wonder if the issue of housing affordability can be addressed if the Housing Board changes the way it sets prices. What has your daughter able to afford housing got to do with you?If she can't afford the prices in her lifetime, it also means she is pretty hopeless to start with! Currently, new HDB flat prices are benchmarked against resale transaction prices. This approach worked well in the past because it was aimed at solving a simpler situation reflecting organic population growth and housing upgrading. Who said the situation was any different then from now? it is still the same...someome wanting to buy a property or a better one! Today, while the first-time home market segment remains as robust as it was previously, the resale market has been hammered by a demand shock from a very sizeable segment of permanent residents. How can this bugger conclude that it is due to PRs...it could be due to Sinkie too! Given that the resale market and first-time segments have different dynamics, and as the prime policy concern is aimed at helping first-time buyers, should we now decouple the benchmarking of new HDB flat prices from resale prices? Does this guy really believe that the MIWs are 'really helping' first time buyers?So who pays for more expensive construction cost now? There may be alternative ways to set prices that can strongly couple with affordability - for instance, prices can be indexed to a multiple of, say, average starting salaries, or salaries of a percentile of taxpayers in the 25 to 30 age group.The salary ranges are too wide and with a much disparity...what sort of salary he wants pegged...his own? I am not sure if the idea is coloured by my daughter's dilemma, but many of my friends have also confided that they were forced to fork out hefty sums to help their children buy their first flats. If your own children cannot afford , don't get married or stay with you..the gov don't owe you this sort of obligation! I cannot see how this can be sustainable for future generations when our children's children come knocking. The future means if your kids are hopeless and cannot get a high salary unlike yourself...they are doomed, nobody owes you a living ( and to live up with style) in this world! Chiang Shao Soong As you read the bold print replies ..this is the type of nanny spooned fed Sinkie, who formed the middle gen and are already hopeless needless to say what the gen after his will be! Link to post Share on other sites More sharing options...
Mightymito 1st Gear February 16, 2011 Share February 16, 2011 buying from HDB is half the price of open market resale. And a 5 room flat cost less than a 400 sq feet condo. What to complain. Link to post Share on other sites More sharing options...
Rayleigh 6th Gear February 16, 2011 Share February 16, 2011 (edited) As you read the bold print replies ..this is the type of nanny spooned fed Sinkie, who formed the middle gen and are already hopeless needless to say what the gen after his will be! Are you a parent? Are you not worry that your kids may not be able to afford a HDB house? Have you not consider that if a young couple is to purchase a unit from HDB e.g. taking 4-m as a reference, how much does a couple need to fork out? Edited February 16, 2011 by Rayleigh Link to post Share on other sites More sharing options...
Rayleigh 6th Gear February 16, 2011 Share February 16, 2011 Didn't some minister mentioned that the BTO scheme is much better in managing demand and supply than the previous scheme? To me, it works only 1 way. Under-demand, HDB cancels off the BTO as seen in 2003/2004. But now when houses are in high demand, I don't see the BTO react accordingly. In some BTOs we are seeing a ratio of 1:6 to 1:12. Shouldn't more BTOs launches be made to bring the ratio down to at least 1:3? The recent BTO at Yishun is at ratio of 1:1.8. IMO, they tackle the issue too late. It has become very reactive instead of pre-emptive. They tackle the issue (releasing more BTO) when HDB prices already sky-rocketed. Link to post Share on other sites More sharing options...
relacker Clutched February 16, 2011 Share February 16, 2011 The recent BTO at Yishun is at ratio of 1:1.8. IMO, they tackle the issue too late. It has become very reactive instead of pre-emptive. They tackle the issue (releasing more BTO) when HDB prices already sky-rocketed. we din pay them to be pre-emptive. mil$ pay only ensure they not corrupted, or does it? Link to post Share on other sites More sharing options...
Yeshe Turbocharged February 16, 2011 Share February 16, 2011 The recent BTO at Yishun is at ratio of 1:1.8. IMO, they tackle the issue too late. It has become very reactive instead of pre-emptive. They tackle the issue (releasing more BTO) when HDB prices already sky-rocketed. dun u know by now, almost everything done by our gov is reactive instead of proactive? Link to post Share on other sites More sharing options...
Yeshe Turbocharged February 16, 2011 Share February 16, 2011 we din pay them to be pre-emptive. mil$ pay only ensure they not corrupted, or does it? how come u kena ban still can post? [laugh] Link to post Share on other sites More sharing options...
Gearoil 1st Gear February 16, 2011 Share February 16, 2011 Are you a parent? Are you not worry that your kids may not be able to afford a HDB house? Have you not consider that if a young couple is to purchase a unit from HDB e.g. taking 4-m as a reference, how much does a couple need to fork out? I think you better clear up your views or else LKY will put MORE spurs into your kid's hide. You better bring up your kiddo with a mindset that daddy and mommy will not feed the kiddo when he/she can 'make their own living'. As a matter of fact, the kiddo has a moral obligation 'to look after' the parents in whatever they can when they are independent! You better set a good example for your kiddo or else it is YOU who is going to suffer for it! ↡ Advertisement Link to post Share on other sites More sharing options...
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