Singapore’s housing policies were a hot topic during the parliamentary debate on the President’s speech yesterday, with several Members of Parliament (MPs) urging a review of the pricing formula for HDB flats.
“CPF grants are helpful but it seems like we are just taking money from one pocket to return it to another. We must seriously consider the pricing formula for HDB flats and seek to make it a transparent one as much as possible,” urged Zainudin Nordin, Chairman of GPC for Manpower.
“This way, we can assure residents that the government is not out to make profits from sales of housing. And by pricing flats more reasonably, we can also relieve the debt service burden of our residents.”
He also urged the Housing and Development Board (HDB) to expand its rental scheme and work out “meaningful subsidies” in order for families to live together safely.
Mr Zainudin pointed out that some people have been settling on interim housing since 2009, and sometimes two families are squeezed into a two-room flat.
“I cannot imagine how school-going children can study, and how parents can keep their young safe while living with strangers. I’m disappointed that we’re slow at resolving this issue,” he said.
Meanwhile, another MP, Hri Kumar Nair (Bishan-Toa Payoh GRC) also urged the HDB to allow elderly Singaporeans living in public flats to sell five- or 10-year portions of their HDB leases back to the public housing agency and be paid a lump sum upfront.
This would enable elderly Singaporeans to have more money instead of being “asset-rich but cash-poor”.
Currently, HDB has a Lease Buyback Scheme (LBS) where elderly flat owners living in smaller flats can retain just a 30-year lease on their flats and sell the remaining back to the HDB. In return, they would receive S$5,000 in upfront payment and monthly annuity payments for life.
However, Mr Nair said the monthly payments are too low.
“We should be careful not to build our housing at all cost,” commented Liang Eng Hwa (Holland-Bukit Timah GRC). She emphasised the particular social costs, “which are almost impossible to quantify in dollars and cents.”
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