Friday, June 27, 2008

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HDB Subsidies: HDB Housing Subsidised ?

There have been numerous complains among Singaporeans about HDB housing being to expensive, the manner which subsidies are given for HDB housing based on market rate is not justifiable, and the way HDB computes its lossess due to these subsidies lacks transparency. The following blog post is such an example:

Letter from HDB: HDB consistently incurs losses selling new flats: "What I would like is for the government (either the 'profitable' entities like SLA or URA) to come clean and let the public know how much profits are stashed away in their books or transferred to the government as capital gains since Day One. We do not want to hear HDB's deficit; rather, we'd like to hear the SLA's or URA's surpluses."

Sentiment like that is getting increasingly louder as property price continues to surge upwards. Logically speaking, one would expect subsidised public housing to be priced at a affordable level of the low income group. Singapore's HDB may have set a totally different definition: Subsidised housing means a discount from the market price. At a time when market price is sky-rocketing, such a methold of computing housing subsidy can make even the lowest priced basic housing unaffordable to the low income group.

May also want to read:
HDB Contributes to Singapore Record High Inflation
HDB Income Ceiling For Buying HDB Flats Not Pro-Family
HDB Resale Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation


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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.

Smart Buyer :)