Letter of the week: Consider subsidy clawback for future executive condominium projects
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The new Prime and Plus flats launched under the Housing Board’s Build-To-Order exercises will come with a subsidy clawback clause.
ST PHOTO: LIM YAOHUI
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I am apprehensive about the competitive bids for the executive condominium (EC) site in Tampines Street 95. With a top bid of S$465 million, or S$768 per square foot per plot ratio, the site set a new record for EC land.
These ECs are developed by private developers and sold at subsidised pricing. They are meant for Singaporeans who cannot afford private condominiums but are priced out of public housing due to the income ceiling.
Eligible buyers are attracted to the lower entry price, comprehensive dedicated facilities and eventual privatisation.
But I worry that the competition for EC land will mean more subsidies being doled out to the wrong target group – that is, higher-income earners.
Developers may try to outbid one another, which may result in higher prices.
The new Prime and Plus flats launched under the Housing Board’s Build-To-Order exercises will come with a subsidy clawback clause. Flat owners must pay HDB a percentage of the resale or valuation price – whichever is higher – of the flat upon selling it.
I believe we should consider a similar clawback clause for future EC projects. This will ensure that state resources are given out only to the right target groups.
Foo Sing Kheng
