atans1

One cheer for the PAP’s housing policy?

In Infrastructure on 17/03/2015 at 4:56 am

During the Parliament debate on Tuesday (10 Mar), National Development Minister Khaw Boon Wan talked about the affordability of HDB BTO flats and how Singapore housing system is better than other countries’, “Recently, UK newspaper The Independent (Jan 23) had an article and with this headline: ‘Londoners queue overnight in sub-zero temperatures to buy one bedroom flat for 400,000 pounds’. 400,000 British pounds is equivalent to about S$840,000. On the same day, in Hong Kong, South China Morning Post (Jan 23) reported 130,000 applications for 2,160 subsidised flats in Hong Kong. The article’s headline reads: ‘Only 1 in 60 chance to win in Hongkongers’ rush for subsidised flats’. The flats, which are roughly the size of our 2-room flats, are priced between HK$1.9million and HK$3.3 million. This is more than 4 times our Build-to-Order (BTO) prices.”

“I think they put into better perspective our much more benign situation in Singapore,” he added.

He got a earful from TRE regular contributor Chris K who has lived in London. http://www.tremeritus.com/2015/03/13/khaw-talked-nonsense-comparing-hdb-prices-to-londons

I leave it to a letter righter to the FT to put the situation in the UK into perspective for us S’poreans: “For the young rent is over 40% of wages. Why do we have to keep paying the rentiers who generate no wealth? We don’t need a new productivity revolution we need to crush the rentiers. There is your paradigm shift.”

But many S’poreans for all of Khaw’s KPKBing about our HDB policies shares one problem with the Brits: Lord Best has spent a lifetime working in social housing and sums up how things stand: “Everybody under 40 has got some kind of housing problem. They’re paying too much for their mortgage, they’re paying too much for their rent, they’re in trouble one way or the other.”

Interesting even that lover of all things HK, Goh Meng Seng, hasn’t attacked Khaw’s comments on HK’s public housing programme. Neither has any other anti_PAP cybernut. In fact no-one has it seems.

So we are one up on HK? One cheer then.

 

 

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  1. HK home prices are bad for buyers, even for landlords as what the market is willing & able to pay for rent may not even cover mortgages.

    According to the latest 11th Annual Demographia International Housing Affordability Survey, HK’s median home prices are 17X their median incomes, coming in at top spot for housing unaffordability. Researchers classify 5.1X median incomes or higher as “severely unaffordable”.

    Singapore ain’t that great but much better at 5.0X median incomes. The researchers classify 4.1 – 5.0X median incomes as “seriously unaffordable”.

    http://www.demographia.com/dhi.pdf

    http://www.bloomberg.com/news/articles/2015-01-19/hong-kong-sydney-housing-affordability-worsens-as-n-z-improves

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