ST : Room for pragmatism

Feb 8, 2010

PUBLIC HOUSING

Room for pragmatism

THE public reaction to rising prices of HDB flats appears to be largely prompted by young, middle class couples in the sandwich class, usually snagged by the $8,000 income ceiling.

They expect their first home to be first-rate, are unwilling to live in the new, outer suburbs, dislike lower floors and expect to get their flat immediately.

I hold a different view. Buyers who qualify to buy directly from the HDB should not take issue with the waiting period for build-to-order (BTO) flats. These flats are subsidised and not bought in the open market.

Buyers should also be open to buying flats in the outer suburbs.

It is not unusual for the price of inner-city housing to escalate as a city prospers. New buyers will just have to live farther away.

Successful buyers also reject flats on the lower floors during balloting for the sale of the balance flats. If they choose to do so, it is only fair that they queue up for the BTO scheme which means a longer waiting period.

Either that, or buy resale, which is dearer. Rather than complain about the high cash premiums, perhaps young couples should realise they must start saving from their first day of work if they wish to have their dream flat.

The Government should not be held accountable if a buyer wishes to have a more desirable flat but does not have enough Central Provident Fund savings.

It is also unreasonable to impose more restrictions on permanent residents (PRs) who buy resale flats. PRs already face more restrictions than citizens in buying public flats.

Allowing PRs to buy flats, and sell them after a regulated period in the open market, will give them a stake here and help Singapore grow.

The Government should come down hard on people who buy flats to rent them out illegally. Despite the rules, many flats are still wholly rented out via the loophole of a locked master bedroom. Perhaps the best way to stop this practice is to reward whistle-blowers.

Finally, as 86 per cent of the population are HDB flat owners, it is actually not a bad idea for the prices of HDB flats to appreciate.

Ng Kwong Yee