HDB no-frill restricted Flat

 心法:

BUDGET 2025 - Addressing high housing prices and food prices
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I wish to propose a tweak to the HDB housing program and the budget meal program in view of the political disquiet on these 2 issues despite a generous BUDGET 2025.
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*HDB no-frill restricted Flat*


1. Every BTO flat development, there will be one block "4-room" no-frill flat with 99 years lease but with no commercial values as it cannot be sold at the open market for a profit.

2. It should be price 50% discounted to BTO flat. Eg. If the BTO 4 rooms at a launch are price at $500,000 - then this no-frill flat should be price at $250,000.

3. This no-frill flat cannot be resale to the resale market - can only sell back to HDB depreciated by the amount of the number of years left. Because these are HDB flats (with no commercial value - as it is not subjected to market force but through socialist government price fixing) and not BTO flats that have commercial values subjected to market forces.
Eg. If tenants intend to sell the no frill HDB flat after staying for 10 years, then it will have to sell back to HDB at $250,000 - ($250,000/10 years) = $225,000.

4. This is an answer to some people asking why during our parents time, flats can be so cheap but now so expensive.

5. Economic principles and market forces determine the BTO prices that have commercial values.
HDB no frill flats are based on price fixing - that follow the social command price mechanism.

6. Since housing price has become a political issue, I was thinking of injecting "Socialist command economy way of pricing HDB price control flats or price fixing" as an option for some people vexing on high housing price.
This should be an experimental pilot project - by starting with a precinct and see how is the response from people who want low housing price (comparable to the price of our parent's time).

7. As the land space for 1 block is quite limited, it should not put a strain on our premium land space and strain our land bank.

a. There will be no attach car park to this block to reduce land space needed as a car price is comparable to a flat price.

b. Depending on demand, a 15 floor no-frill flat is build if demand is low.
For high demand, a 30 floor can be built to utilize the same foot fall - reducing the need for catering more premium land space.

8. We can use this experimental flat to gauge response as well as feel the political heat.

9. Hence if there are 10 BTO projects in a year, only 10 blocks of HDB no-frill flats will be build - and I believe this will not strain the Government Budget.

10. No grants or subsidy will be given to HDB no-frill flats owners because it is so cheap and so heavily subsidise.