National Solidarity Party (NSP) Towns will have flats that cost the same, look the same and will never grow in value, said National Development Minister Mah Bow Tan at a rally.
“Residents of Tampines, do you want Tampines Town to be NSP Town? A town that is built on ideas that are naïve, that are superficial, that are populist?” asked Mr. Mah to the crowd at Tampines Stadium.
The minister’s disapproval of NSP’s housing proposals adds to the debate on home affordability, which has lasted for weeks.
With increasing home prices a growing problem during this election period, opposition parties have come up with suggestions to make public housing more affordable.
The NSP proposed that the government should peg the prices of new flats to the building cost of the units, including a slight mark-up, while the Workers’ Party (WP) suggested that prices of new flats should match median incomes.
Aside from managing both long-term and short-term housing issues, the minister noted that the government has balance the demands of various groups of people also.
“Any move we make must take into account the interests of those who are about to buy and those who have already bought,” Mr. Mah said.
He claimed that the opposition was concerned about the short-term issues only.
“The NSP also tells you that asset enhancement is not important. If that is the case, then what is the difference between that and renting your own house? You might as well rent. How does NSP’s plan benefit you in the long term?”
Refuting claims that home purchases cause a deficit in CPF retirement funds, Mr. Mah explained that part of one’s contribution goes to the CPF Special Account, adding that if the government were to reduce the amount of CPF funds for housing, the Opposition will ask for liberalisation.
In addition, Mr. Mah asserted that a 30-year mortgage is too long. He believed that home buyers should choose a shorter payment period if they want to.
“The choice is yours. They offer you cheap shelters, we provide you good homes, that are the difference.”
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