Daily Lessons from Life 16 June 2011 - Public Housing Policy: Shake the Core ...

"Thu, Jun 16, 2011 - AsiaOne: Revising HDB income ceiling has justification: Khaw

SINGAPORE - National Development Minister Khaw Boon Wan said there is justification to revise the HDB income ceiling, based on figures he received from HDB regarding buyers' profiles.

In an entry posted today on his blog, Housing Matters, Mr Khaw made some observations, among which is that 65 per cent of applicants for his first Build-To-Order (BTO) launch last month are first-timers, 55 per cent were making their first BTO attempt, and 35 per cent were first-timers making their first BTO attempt.

He wrote: "Among the first-timers, more than half applied under HDB's Fiancé-Fiancée Scheme. Their median age was 27. As for the other first-timers (i.e. those already married), their median age was 34. There is therefore justification to revise the HDB income ceiling, given the rising age of applicants.""

I think he is NOT addressing the fundamental issue of public housing in Singapore.

Lessons for me are:

1. public housing is NOT private property and is NOT an investment instrument and NOT a stepping stone to a private property by selling and upgrading!;

2. pubklic housing is for people who CANNOT make it to private property by their income - active or passive;

3. regardless of WHAT is said, ALL leasehold properties in Singapore and like on 'rental'! You give it back to the government when the 99-year lease period is up. You can buy it back on 'market value' IF all the owners of the 99-year leasehold property you are in want, can afford, to pay the 're-leasing' price then!

That is really the KEY issue that need to be addressed! NOT some cosmetic or short term fixes without rocking the core!! A rocking that NOBODY really want to do as it will definitely caused existing public housing owners who bought their properties on the red-hot resales market or those who HAD NOT sold and pocketed their 'windfall' from selling their 'bought at original low price from HDB' properties!

A government has to think long term and NOT short term. So, Minister Khaw needs to do some serious thinking and have the courage to do the 'unthinkable' for the long term health of the puliic housing population!