WP's plan leaves home owners vulnerable

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Apr 21, 2011
WP's plan leaves home owners vulnerable
AS 85 per cent of Singaporeans own HDB flats, I would advise caution in considering the Workers' Party (WP) proposal to peg new HDB flat prices to median income ('WP's policy proposals'; April 10).
The WP plan may seriously affect home owners who are forced to resell their flats, for which they paid a lot, because of a personal downturn.

Furthermore, some of the buyers of new HDB flats are second-time purchasers who may be upgrading or downgrading. This group should not be adversely affected by the prices of new flats as their prices are tied to the resale market prices and then discounted.
The only group the Government should consider specially are first-time buyers who have no existing HDB flats to hedge against the rising costs of new flats.
As such, the WP's proposal to lower new HDB flat prices across the board is unwarranted.
Instead, the WP should offer effective suggestions to help first-time buyers.
The Government has taken effective measures including raising the monthly household income ceiling for buying three-room flats from $3,000 to $5,000.
What the Government should continue to do is review the adequacy of its measures to help first-timers afford new flats.
Although the Government must mitigate the impact of the rising costs of public housing for first-timers, it is equally important to continue to protect the interests of the 85 per cent of existing HDB home owners.
Shirley Chng (Madam)
http://www.straitstimes.com/STForum/Story/STIStory_659179.html

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Related link:
WP:
10Apr2011: 'WP - Policy Proposals (... and My Views)'

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