TR EMERITUS

Written by Our Correspondent In yet another sign that there is a shortage of flats in the public housing market, two Build-to-Order (BTO) flats in Sengkang and Sembawang are more than 5 times over-subscribed. According to a Channel News Asia report, the two projects received 4,732 applications in total for the 828 units offered which are being sold at between S$281,000 and S$352,000 for five-room units at Fernvale Ridge and between S$212,000 and S$268,000 for four-room units at Sembawang RiverLodge. 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 flats. In 2009, the prices of resale flats grew by a record 8.2 percent with median COVs doubling from $12,000 to $24,000 in the last quarter alone. The ruling party had made known its ambitious plan to increase Singapore’s population to 6.5 million via immigration as early as 2005. 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. Despite evidence showing otherwise, National Development Minister Mah Bow Tan continues to insist that HDB flats are "affordable" and that PRs have no "impact" on the prices though they constitute 20 percent of the buyers. The BTO launches this year are all grossly over-subscribed by 5 to 10 times with many Singaporeans missing out on their choices. In response, Mr Mah told them not to be too "fussy" and claimed that he cannot build the flats at their choice locations and desired floors.   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.   Related articles: >> 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 →

Written by Our Correspondent An irate Singaporean has lashed out at the CPF Investment Scheme (CPFIS) for causing him to lose some $350,000 in his CPF account during a dialogue session. He had invested in some shares under the CPIS, but did not elaborate more on how he lost his monies and the shares he bought. He also claimed that he suggested to the CPF Board to stop the scheme, but was told by the staff that it was his "personal choice" to make the investments. Second Minister for Finance Lim Hwee Hua appeared to be supportive of the scheme: "I'll convey your feedback to the CPF Board but I'm not quite sure the rest will agree that we should stop the scheme," she was quoted as saying in Channel News Asia. Under CPF regulations, members can invest up to 35 percent of their CPF savings in their Ordinary Account in shares. However, the profits made in the shares go back to the CPF accounts of holders and cannot be withdrawn. Though Singaporeans have a choice to invest their CPF monies under CPFIS, they have NO CHOICE but to contribute a certain percentage of their monthly pay to CPF. Furthermore, they have NO CHOICE on when to withdraw their own CPF savings. In the past, Singaporeans are able to withdraw their CPF savings in one lump sum when they reach the age of 55.  In 2003, the Minimum Sum scheme was introduced which stipulates that Singaporeans must keep a minimum sum (MS) of money in their CPF accounts. From July 1 2009, the CPF MS was revised from $106,000 to $117,000. Now all Singaporeans are ”automatically” included in the CPF Life scheme if they turn 55 from 2013 and have at least $40,000 balance in their CPF Retirement Account or their CPF savings increase to $60,000 by the time they reach 65 years of age. The CPF savings of Singaporeans are in turn invested in bonds issued by the Ministry of Finance. It is not known if the funds are used by Singapore's two sovereign wealth funds Temasek Holdings or GIC. Singaporeans have NO CHOICE on how to use their own retirement savings as they are being locked away in the CPF. There is no opposition in Parliament to hold the ruling party accountable for its actions. The rules to the CPF are changed now and then at its pleasure without any public referendum or consultation with the people.  Read More →

Sir, Mr Vivian Balakrishnan, I think sir, the fact your name doesn't have any 'S' initials is causing you problems. The most recent issue for you is that you gave 10 million dollars of Singaporeans' money to intergrate foreigners and now you're coming to Singaporeans and asking them to "rally behind" to make your boring Youth Olympics. Why don't you ask those foreigners who you used our money to intergrate to rally behind it instead? I'm sure there are enough of them, since 34% or 1/3 of the population are made out of foreigners. So sir, that's why I'm worried that you're going to run into some problems in the near future like our ex-President C N Devan Nair. Because like yourself, he doesn't have an S initial in his name. He and you might be the only 2 Indian PAP "leaders" who don't have an S initial. Maybe S stands for Singapore, or maybe it stands for Yes Sir. Now I'll start naming some of the the past and present PAP leaders with S initials. Counting starts now: S Rajaratnam S Vasoo S Chandradas S Thanabalan S R Nathan Shanmugaratnam Tharman Shamugam K S Jayakumar Sadasivan Balaji S Iswaran Sinnakaruppan R So sir, let's hope you don't run into more problems. By the way, I am not going to attend or rally behind the Youth Olympic Games. Thank you sir, that's all for now. V for Vendetta! S for Singapore! Sincerely yours,   Singa Bala  Read More →