Forum: Put in place new pricing model for HDB flats

The report on new price records for resale Housing Board flats is worrying (Skyscraper resale flat prices hit new highs despite crisis, Sept 13).

Prices of new flats have also risen over the decades (albeit not as fast as those of resale flats).

Given such a trend, I fear it will be very difficult for future generations of Singaporeans to own a flat. What will be the social consequences then?

Will we have a nation where fewer and fewer people can afford to have a place of their own where they can put down roots?

HDB's prime objective should be to provide affordable housing for Singaporeans of all generations. As such, HDB should consider making radical changes to its home ownership schemes.

Implement a new pricing system for new flats. HDB could set a cut-off date for when this new system takes effect.

Flats bought before this cut-off point will be governed by current rules and regulations until the lease expires.

However, prices of the new flats under the new system should include only building and administration costs, minus the land cost.

Thereafter, owners who want to sell these new flats must be made to sell them back to HDB at a certain price, taking into consideration the age of the flat, depreciation and inflation.

A formula should be worked out. In this way, it will prevent any speculative transactions.

Tan Keng Hai

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