The Straits Times
www.straitstimes.com
Published on Nov 07, 2012
 

Upgrading's fine but not at expense of price spiral

 
 

WHILE I can appreciate the ambition of HDB dwellers to upgrade to private properties ("Reduced supply pushes prices up"; last Saturday), they should not be allowed to earn rental income from their flats to subsidise the purchase of their new private homes.

HDB flats, whether they are purchased directly or from the resale market, are public flats built for the primary purpose of meeting the housing needs of Singapore residents who are unlikely to be able to afford private housing.

As such, HDB home owners who are now able to afford to upgrade to private properties should return their flats by selling them in the open market or back to the HDB.

Returning these HDB flats to the open resale market will increase the supply side and help to stabilise the steep prices for leasehold public flats.

Terence Tan Wan Liang