Time for HDB to go back to basics of quality housing at affordable prices

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Deputy Chair of the National Development Government Parliamentary Committee, Liang Eng Hwa said it’s probably time for HDB to go back to the drawing board and examine the issue of affordability.

Both he and at least one property analyst are waiting for more details of the new housing schemes announced in Parliament on Friday.

More help for first time married couples and singles to meet their housing needs were just some of the measures announced by National Development Minister Khaw Boon Wan in Parliament on Friday.

Mr Liang said the measures take into account feedback given to the government by Members of Parliament (MPs).

He said: "When public housing started, the main intent was to provide quality housing at affordable prices. This appreciating asset portion was not intended to be. But as the country progressed, with our economic growth and incomes going up and savings going up, the value of the flat has gone up as well and it is a good thing. It does add wealth to our citizens, who do see their valuation go up and the possibility of them to monetise.

"As we see property prices at these kinds of levels and the economic growth that we will see in the next two decades which will be slower and coupled with the demographic changes like the ageing population, the lower fertility rate, more singles, all these do impact public housing going forward including whether it will be appreciating asset.

"The HDB should go back to where it started and look at affordability. We must tackle the affordability part, though flats are still affordable, they are on the upward end of the range of affordability.

"We should look at how we can price our flats so that it can be affordable to Singaporeans, especially for the first time home buyers and come out with different packages or schemes so that the lower income groups are able to buy a flat and raise a family.

"The idea is not to bring down the property market prices, the idea is to keep housing affordable and monitor the response of the market and make necessary tweaks to the system."