During a recent parliamentary session, Mr. Inderjit Singh questioned the government on its liberal immigration policies, which has contributed to the escalating prices of HDB flats.
“By bringing in too many people too quickly…the cost of living has gone up rapidly. The clearest manifestation of this is the cost of HDB flats,” he said.
He added that demand in the resale market coming from PRs can drive the prices up, though they cannot purchase new flats. PRs who rent HDB flats can also contribute to the sky-rocketing prices.
According to National Development Minister Mah Bow Tan, PRs, who account for “only” one in five of the flat buyers in the resale market, have minimal impact on resale prices.
Some property agencies, like ERA, have said the reported 20 percent minority is actually higher at 40 percent, which is a sufficient figure to distort the market.
In the past few years, HDB flat prices have almost doubled, with prices of resale flats hitting an all-time high in June 2009, when the economy was mired in a recession.
Recently launched flats under the BTO scheme are more than five to ten times subscribed even in less popular areas like Choa Chua Kang, indicating a serious housing shortage.
Mr. Mah announced recently that the government was looking into measures for the HDB market.