TR EMERITUS

Written by Our Correspondent The Lorong 8 wet market cum hawker centre, which is fast becoming a relic, has finally been selected for upgrading by the government. According to a TODAY report, the hawker center will be closed for 11 months from November and the upgrading workers include the replacing of plumbing and sanitary system. The hawker center was built in the 1970s as part of the new Toa Payoh estate and is already more than 30 years old. It is located in Potong Pasir ward which was won by the opposition MP Mr Chiam See Tong in 1984. The PAP has denied essential upgrading to the flats and amenities of opposition wards to "punish" the residents for supporting the opposition though they pay income taxes like the rest of Singapore. Former Prime Minister Goh Chok Tong once threatened to turn Potong Pasir and Hougang, another opposition ward into "slums" if the opposition were to win again. The ruling PAP controls 82 out of 84 seats in the Singapore Parliament and has engineered the electoral system to its benefit which enables it to win elections after elections. The use of estate upgrading to threaten voters to vote for the PAP has become increasingly unpopular and is likely to backfire if the same hard-ball tactics are employed in the next general election. With public sentiments against the PAP at an all-time high, the opposition is expected to add on its current two seats in Parliament including winning a GRC for the first time in history. While the Lorong 8 hawker center is now scheduled for upgrading, there are no updates on the upgrading of lifts in Potong Pasir which was promised earlier by the PAP last year, prompting one concerned resident to write in to the Straits Times Forum. The PAP should stop using taxpayers' monies to further its own partisan interests. Upgrading of estates and amenities is funded by public funds and not from the PAP's coffers. It should be based solely on need and not on the political allegiance of the constituents. Such rampant pork-barrel politics has no place in a modern civilized society like Singapore.  Read More →

From The Independent April 13, 2010 By Sean O'Grady Homeowners have been putting their properties up for sale to beat the general election, according to the latest survey by the Royal Institution of Chartered Surveyors. The Rics says there has been a marked increase in the number of vendors in recent weeks: the jump in the number of sellers was the largest since May 2007, and has dampened expectations for house prices. "Surveyors report that political uncertainty is pushing vendors to market their property before the impending election," the Rics adds. A net balance of 21 per cent of surveyors saw a rise in new instructions, which compares with a balance of 16 per cent in February. But the number of buyers stabilised in March, suggesting that the outlook for prices has grown poorer. Most observers of the real-estate scene put the mini-boom in house prices during the second half of last year largely down to a shortage of quality properties coming on to the market. That trend seems set to reverse. Recent price data from Nationwide and Halifax has been mixed, due to the the distorting effects of the stamp duty holiday that ended on 1 January. Mortgage approvals have been volatile; though in any case way down on their pre-credit crunch norms. Ian Perry, a Rics spokesman, said: "With the general election approaching and uncertainty growing over the political direction of the country, many vendors who were previously inclined to sit on the sidelines now appear eager to put their properties on the market. "With stocks increasing and sales decreasing we may see some modest price falls in some regions, although London, the South-east and Scotland are continuing to perform well." More support for housing will come from the Government's new stamp duty holiday for the next two years for first-time buyers on properties under £250,000. Source: http://www.independent.co.uk/news/business/news/rush-to-sell-homes-before-the-general-election-fight-1943148.html  Read More →

Written by Our Correspondent A perturbed Singaporean by the name of Wong Pang Yee has written to the Straits Times Forum today expressing his concerns about the leasehold status of HDB flats. All HDB flats are 99-year leasehold properties meaning that flat owners are effectively renting them from HDB for a period of 99 years only - they do not own the flats which can be repossessed by the government at the end of their tenure. The prices of HDB flats have sky-rocketed in recent years due to rising demand fueled by immigration in the face of limited supply of new flats. The ruling party had made known its ambitious plan to increase Singapore’s population to 6.5 million via immigration as early as 2003. However, only slightly more than 11,000 new flats were built between the years 2006 – 2008 when there were over 90,000 PRs and 20,000 new citizens alone in 2008:   [Source: HDB Financial Report 2008/2009] Below is a graph illustrating how the rise in the prices of resale flats coincides with the rise in the number of foreigners in Singapore between the years 2000 and 2008, courtesy of Kojakbt, the moderator of 3in1kopitiam: Due to the ruling party’s liberal immigration policy, foreigners now made up 36 per cent of Singapore’s population, up from 14 per cent in 1990. The influx of PRs also contribute to a spike in the prices of resale flats as they have higher spending prowess and are willing to spend more. The Straits Times reported a Taiwanese couple paying a record $650,000 for a four room flat in Bras Basah lately. Another Indonesian PR forked out $653,000 for a 4 room flat in Queenstown. Mr Wong felt that current prices are spiraling out of control:   "Buyers are chasing Housing Board resale prices relentlessly as if they are freehold properties. For instance, five-room flats in Marine Parade, with less than 65 years of lease left, are changing hands at $700,000 each or more. If these prices are averaged out over 99 years to compare with new apartments with 99-year leases, it would put the valuation of such units at more than $1 million.Is the price reasonable?" he wrote. [Source: Straits Times Forum, 13 April 2010] Technically speaking, the value of a leasehold flat should plummet as it reaches the end of its tenure. The prices are kept artificially inflated now simply because there is a gross under-supply of flats to meet the demands of a growing population. Mr Wong ended his letter by urging the government to reveal its policy on the expiry of the leases of HDB flats: "It would be fairer if the Government spells out the policy on the expiry of HDB leaseholds, so that buyers will have a clearer idea of what they are buying into." It is highly unlikely that Mr Wong will receive a reply from the government or HDB itself. Despite evidence showing otherwise, PAP leaders continue to insist that HDB flats remain "affordable" to ordinary Singaporeans and that rising value of flats helps to "generate" wealth for them.   EDITORS’ NOTE: Please join the discussion about this article on our Facebook page here and invite your friends to do so to help us raise awareness among fellow Singaporeans.   Debunking official myths of HDB flats series: 1 Myth 1: Singaporeans are “owners” of their HDB flats 2. Myth 2: HDB flats are "affordable" to most Singaporeans 3. Myth 3: Rising prices of HDB flats "generate" wealth for Singaporeans   Related articles: >> Mah Bow Tan embarrassed by Reform Party’s Hazel Poa >> Mah Bow Tan: “Unrealistic” expectations to blame for unhappiness about flats >> Taiwanese PR paid record $ 650,000 for 4-room resale flat >> Grace Fu: PRs are helpful to HDB flat owners selling their flats >> HDB launches “traveling exhibition” to trumpet its achievements in the heartlands >> PAP to upgrade 12,000 HDB households ahead of next election >> Mah Bow Tan: We do not want flat prices to go down >> Prices of resale flats to rise further as PR quota reached >> Taiwanese PR offers $50k COV for resale flat >> Mah Bow Tan: PRs have minimal impact on resale flat prices >> No empirical evidence to suggest that public housing is affordable in Singapore >> When will Singapore’s property bubble burst? >> Why HDB is unable to reveal break down costs of new flats now >> HDB to consider introducing rules to curb property speculation >> HDB blames Singaporeans for not selecting flats when given the chance >> Singaporeans worried about retirement after depleting CPF to pay for over-priced HDB flats >> Mah Bow Tan acknowledged that rising HDB flat prices has sparked “fresh concerns” >> PM Lee: Govt does not have control over prices of resale flats” >> COVs of resale flats shooting through the roof >> HDB resale price index hit record high in 2009 >> Singaporean wants PRs to live in rented flats instead of buying resale flats >> Singaporeans wants PRs to be banned from selling HDB flats at a profit >> Shanmugam: Singaporeans likely culprits for driving up HDB flat prices >> Mah Bow Tan: HDB flats remain affordable >> Means testing for PRs to buy resale flats >> Immigration and public housing: should the govt or people plan ahead? >> Grace Fu: hard to predict demand for housing >> Indonesian PR bought 4-room flat at $653,000 >> Mah Bow Tan asks home buyers to be realistic >> PAP MP blames young couples who cannot get a flat for not planning ahead >> Home affordability: HDB versus the public >> Demand vs supply: so many applicants, so few flats >> Number of applicants exceed number of flats >> HDB to increase supply of flats >> Mah: don’t compare with prices in the past >> ERA: 40 per cent of HDB flat buyers are PRs  Read More →