Commentary: Singapore’s public housing policy has done its job splendidly. Maybe it is time for a makeover?
With an ageing population who may be asset rich but cash poor, and the 99-year HDB leasehold issue looming large in public discussion, we need a hard look at the direction of public housing policy, says one observer from the Lee Kuan Yew School of Public Policy.
(Updated: )
Ricky Lim ·
What can we do to tackle this conundrum? One idea is to privatise older HDB flats, while we still have time to roll it out before problems arise. We have a precedent.
The HUDC programme was a programme started in the 1970s with the aim of catering to “sandwiched” middle-class professionals who did not qualify for low-cost HDB housing. By the 1990s, as the HDB programme gained momentum and catered to most classes of buyers with offerings such as executive flats, demand for the HUDC programme declined.
In 1995, HUDC estates were allowed to privatise provided a clear majority of owners voted for it and paid HDB a fee, inclusive of buying over common areas.
One by one, HUDC estates went private. Many went en bloc, with the developer picking up the tab for a lease top-up. Others simply topped up their leases.
In a similar way, we can do so for older HDB estates. Privatising HDB flats frees the way for owners of older HDB flats to maximise their ownership and monetise their houses as private property owners.
In the HUDC case, the process of privatisation across various HUDC properties was drawn out over decades. HDB privatisation can be similarly managed to ease the transition and avoid supply shocks, concurrent with HDB managing the supply of new flats.
Read more at https://www.channelnewsasia.com/.../singapore-hdb-public...
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Posted on :- April 5, 2018
REACH
Ricky 2 seconds ago
99-year-leasehold HDB flats will become zero value when the 99 year lease is up.
One way to ensure that its value will not turn to zero - is to enbloc them by allowing private developers to bid for it - but cap its price to be around the BTO prices.
In this way, owners of such flat can reap enbloc price per unit and private developers can redevelop the HDB flat that is reaching 99 years and resell it at the prevailing BTO prices.
By doing so, owners can retain HDB as an asset with values without becoming zero, and also the flat can be redeveoped into new flat and sell at a prevailing price with profit to developers --- and Government coffer will not be hurt.
This will also promote growth of the construction sector - with this enbloc scheme - and further contribute to the GDP of Singapore.
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Reply
The HUDC programme was a programme started in the 1970s with the aim of catering to “sandwiched” middle-class professionals who did not qualify for low-cost HDB housing. By the 1990s, as the HDB programme gained momentum and catered to most classes of buyers with offerings such as executive flats, demand for the HUDC programme declined.
In 1995, HUDC estates were allowed to privatise provided a clear majority of owners voted for it and paid HDB a fee, inclusive of buying over common areas.
One by one, HUDC estates went private. Many went en bloc, with the developer picking up the tab for a lease top-up. Others simply topped up their leases.
In a similar way, we can do so for older HDB estates. Privatising HDB flats frees the way for owners of older HDB flats to maximise their ownership and monetise their houses as private property owners.
In the HUDC case, the process of privatisation across various HUDC properties was drawn out over decades. HDB privatisation can be similarly managed to ease the transition and avoid supply shocks, concurrent with HDB managing the supply of new flats.
Read more at https://www.channelnewsasia.com/.../singapore-hdb-public...
-----
Posted on :- April 5, 2018
REACH
Ricky 2 seconds ago
99-year-leasehold HDB flats will become zero value when the 99 year lease is up.
One way to ensure that its value will not turn to zero - is to enbloc them by allowing private developers to bid for it - but cap its price to be around the BTO prices.
In this way, owners of such flat can reap enbloc price per unit and private developers can redevelop the HDB flat that is reaching 99 years and resell it at the prevailing BTO prices.
By doing so, owners can retain HDB as an asset with values without becoming zero, and also the flat can be redeveoped into new flat and sell at a prevailing price with profit to developers --- and Government coffer will not be hurt.
This will also promote growth of the construction sector - with this enbloc scheme - and further contribute to the GDP of Singapore.
Less
Reply
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