TODAY Online : HDB flats still affordable?

HDB flats still affordable?

MPs fear Singaporeans priced out by foreigners, private property owners

05:55 AM Mar 03, 2010

by Leong Wee Keat

SINGAPORE - They were free to discuss any point raised in the Budget 2010 speech - and yesterday, several parliamentarians chose to reiterate the concerns Singaporeans have over the affordability of housing board flats.

While Finance Minister Tharman Shanmugaratnam in his Feb 22 speech had touched on a new tax regime to buffer flat owners, whose flat values are rising, from a growing property tax bill, MPs broached a more direct fear: Would residents be priced out of public housing, whether by foreigners or private property owners?

By admitting too many immigrants too quickly into the country, Mr Inderjit Singh (Ang Mo Kio GRC) said Singaporeans must now compete for resources, which drives up the cost of living: "The clearest manifestation of this is the cost of HDB flats."

Dr Ahmad Magad (Pasir Ris-Punggol GRC) said going by anecdotal evidence, there were private property owners who owned resale HDB flats, but instead of staying in them, as the rules require, were renting them out. "While the numbers may now be quite small, I fear they will swell if no new measures are introduced."

He is asking the Government to review its policy of allowing the sale of HDB flats after a year if they are purchased with a bank loan and the rental of HDB flats after a three-year occupation period.

"Harsh action should be taken against those who rent out their flats illegally," he added.

MP Sin Boon Ann (Tampines GRC) called for a review of the $8,000 household income ceiling for buyers of new flats.

"Not everyone whose combined income exceeds the household limit can afford private housing, (nor will they) necessarily have the ability to stump out cash for the cash portion if they bought an HDB flat from the secondary market," he said.

And with the perception that property prices are rising, many feel owning "a decent home" is even further out of reach, he said.

Meanwhile, MP Liang Eng Hwa (Holland-Bukit Timah GRC) hoped the Government would pre-empt another emergence of en bloc fever, which he said could distort the property market and cause short-term volatility.

"Besides, en bloc sales, if too widespread, can be harmful for the environment and waste much of our precious resources," he added.

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