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Tag: housing

  • Why 50K HDB Rentals Can’t Buy When Less Than 1K Can Afford?

    Why 50K HDB Rentals Can’t Buy When Less Than 1K Can Afford?

    1,800 earning less than $1,000 bought HDB

    According to the Straits Times news report “GE2015: PM Lee’s assurance on cost of living” (Sep 3) – “With more subsidies, the net price for a two-room flat is now $30,000 and many families have been able to afford it, he said. In the last four years, 1,800 families earning less than $1,000 a month have bought two-room flats.

    “So when I say we have made housing more affordable to help people with the cost of living, I’m telling the truth.””

    50,000 HDB rental tenants can’t afford to buy HDB?

    If even most people earning less than $1,000 a month find buying a HDB flat affordable – then, arguably why do we have more than 50,000 HDB rental flats that are rented by Singaporeans?

    How many of the 1,800 families earning less than $1,000 who bought HDB flats in the last four years were HDB rental flat tenants?

    From the cheapest to the most expensive public housing in the world?

    Our public housing has arguably changed from being the cheapest public housing during our late former Prime Minister’s era, to the most expensive in the world – if measured by the price to wages ratio

    Supply of HDB flats to meet demand?

    The supply of HDB flats to meet demand was also an issue.

    For example, whilst the total number of HDB flats grew by 201,755 or 25,219 per year, in the eight years from 661,163 in 1994 to 862,918 in 2002 – it only grew by 21,438 or 3,063 per year, in the seven years from 868,774 in 2003 to 890,212 in 2010.

    In other words, the average increase in flats per annum declined by a whopping 88 per cent (3,063 divided by 25,219).

    Huge population increase 

    During this seven-year period when very few HDB flats were built – the huge influx of foreigners increased the population by a whopping 961,906 or 23 per cent, from 4.1 million to 5.1 million, from 2003 to 2010.

    HDB prices

    With this huge increase in the population – the HDB Resale Price Index increased a whopping 66 per cent or 7.5 per cent per annum during the same period from 75.1 in 2003 to 124.4 in 2010.

    Housing problems compounded by low CPF %, wages, population increase?

    Our public housing problems were perhaps compounded by the decrease from 6.5 per centCPF interest to 2.5 per cent (the lowest real return amongst national pension schemes in the world since 1999), huge influx of foreigners, hardly any real increase in wages, etc.

    We should relook the “great” policies like HDB and CPF implemented during the late former Prime Minister’s tenure – in the context of how they may have convoluted to become the key problems that Singaporeans have today?

     

    Leong Sze Hian

    A.S.S. Contributor

    Source: www.allsingaporestuff.com

  • Housing, Jobs And Healthcare Concerns Weigh Heavily On Singaporean Minds

    Housing, Jobs And Healthcare Concerns Weigh Heavily On Singaporean Minds

    Are Singaporeans happy with life as a whole now – and do they feel confident about the next 10 years?

    According to a survey commissioned by MediaCorp’s Current Affairs Unit, 66 per cent of residents said they are happy while 14 per cent said they are not. Asked whether life is close to ideal, five in 10 said yes.

    Many expressed concerns over issues ranging from transport to housing and security. But even more people said they expected to be more worried about these issues 10 years down the road, reflecting a sense of uncertainty about the future.

    Overall, six in 10 residents think economic conditions here will allow them to reach their personal goals.

    CONCERNS OVER NEXT 10 YEARS

    With the buzz of a General Election in the air, what weighs heaviest on the minds of Singaporeans?

    The affordability of healthcare, availability of affordable housing, and the loss of potential jobs to foreigners were the top three concerns of respondents. All three were hot-button issues in the last General Election in 2011.

    Concerns about elderly needs and the availability of integrated healthcare came in fourth and fifth, respectively.

    The survey involved 2,000 citizens and permanent residents from the ages of 18 to 65, across all races and income groups. Half were surveyed via email while the rest were interviewed face to face.

    HEALTHCARE

    Despite more state funds being pumped into healthcare and subsidies such as the Pioneer Generation Scheme, as well as Medishield Life starting on Nov 1, healthcare affordability topped the list of respondents’ concerns, with 83 per cent saying they were worried about increasing healthcare costs.

    Low-to-middle income workers (earning S$3,000 to S$5,000) were more worried about rising healthcare costs than low-income earners, who are on the receiving end of heavier subsidies and aid.

    One respondent said: “Healthcare costs have increased exponentially over the years, notwithstanding the increase in subsidies.”

    Associate Professor Paulin Straughan of the National University of Singapore’s sociology department said these are real concerns as life expectancy increases. “This quote sums it all. When you ask an individual to project their anxieties to the next 10 years, the only thing they can think of is the trend,” she said.

    “This is one area we’ve been worried about because of the rise in costs. We are living much longer now, and we anticipate that we will be spending a significant portion of our life living with disabilities.

    “And there’s nothing more worrisome than being ill when you don’t have an income any more.”

    HOUSING

    Despite HDB resale and private housing prices falling since early 2014, 78 per cent of respondents said they were concerned about the affordability of housing, with 47 per cent “extremely concerned”. The concern was greater among those aged 18 to 24.

    78% of residents surveyed are concerned about the affordability of housing.“I think it would take at least 2 general elections before people actually change their attitude towards housing,” says cultural critic Nazry Bahrawi. Also hear from sociologist Paulin Straughan and social changemaker Rebekah Lin.Watch the full episode at http://video.toggle.sg/en/series/talking-point/ep24/338939.

    Posted by Talking Point on Friday, August 7, 2015

    Mr James Chia, a financial educator from Innervative Learning, said: “Ultimately you expect the trend to go up, especially with population increasing. It’s demand and supply, so the concern will always be there.”

    Respondents, especially the younger generation, expressed worries about the difficulties of buying their own home.

    Miss Rebekah Lin, co-founder of 50 For 50, a social enterprise, said: “The prices of property have risen much faster than an increase in salary. It is increasingly harder for young couples and singles to afford.”

    Mr Chia said: “Housing is the biggest ticket item you’re going to buy in your life, so there will always be a concern.”

    LOSS OF POTENTIAL JOBS TO FOREIGNERS 

    Since the 2011 General Election, the Government has scaled back foreign worker numbers and employment passes. It has also introduced initiatives such as the Jobs Bank, closer scrutiny of companies’ hiring practices, and even a wage subsidy if companies hire unemployed Singaporean professionals, managers and executives aged 40 and above for mid-level jobs.

    But respondents said they are still worried that they will lose out on potential jobs to foreigners over the next five to 10 years.

    Said Assoc Prof Straughan: “I’m not denying the fact that there are tension spots, but certainly we shouldn’t accept these as broad strokes to describe the implications of having immigration.

    “Because truth of the matter is we don’t have enough of ourselves with a sustained low-fertility rate, (and) we’re not able to maintain the kind of buzz in our labour market.”

    Mr Chia noted: “I think the concern runs deeper than the issue of foreigners.”

    He said foreigners may be an easy target in terms of loss of jobs, but innovation, too, has the potential to displace jobs as Singapore gears towards being a smart nation.

    Agreeing, Assoc Prof Straughan said that this boils down to being “future ready”.

    She said: “You need to be able to future-proof your skill set so that you will always remain relevant no matter who is with you in the competitive arena.”

    “The real issue (concerning foreigners) is really about a disparity that people perceive,” said Dr Nazry Bahrawi, humanities lecturer at Singapore University of Technology and Design (SUTD).

    “I guess the PMETs are probably the ones that feel these most. And some find a bogeyman that is easy to seek,” Dr Nazry added.

    “What we should do then is to look at how we can develop the groups that are caught up in this disparity rather than shape the discourse towards blaming a certain group that may not be the real concern here.”

     

    Source: www.channelnewsasia.com

  • Former HDB CEO: Singapore Must Plan For 10 Million Population

    Former HDB CEO: Singapore Must Plan For 10 Million Population

    Singapore must start planning for a population that could possibly hit 10 million, Liu Thai Ker, the man often credited as the architect of modern Singapore, told CNBC.

    The bold number suggested by Liu, who served as the chief executive of the Housing Board from 1979-1989 and then as CEO and chief planner of the Urban Development Authority from 1989-1992, is nearly double the current 5.3 million population and significantly higher than the 6.9 million figure proposed by the Singapore government in its 2013 Population White Paper.

    In the white paper, the government described its vision of raising the country’s population by as much as 30 percent in the next two decades to ensure the economy remains dynamic. However, the move sparked strong objections amid rising discontent in the land-scarce nation over soaring housing costs and an influx of immigrants.

    But Liu stands by his theory, saying that population growth is pivotal to Singapore’s future.

    “One fundamental thing about urban planning is, don’t try to stop or control or curb population growth,” Liu, who is now chairman at the Centre for Liveable Cities and senior director at RSP Architects Planners and Engineering, said.

    Read MoreHow Singapore can stay relevant after 50th

    “We should allow Singapore to grow and plan for a much bigger population… like 10 million people. We should ask ourselves: How long do we want Singapore to remain as a sovereign country? Even at 10 million people and assuming a population growth rate of 1 percent, we will only last slightly over 100 years and that’s not a long time,” he added.

    The country, which is battling worrying demographic changes, also needs immigrants to keep its economic engines running. With a fertility rate of only 1.2, far below the replacement rate of 2.1 and one of the lowest in the world, an ageing population would lead to profound problems for Singapore, the country’s Prime Minister Lee Hsien Loong said at a conference earlier this month.

    Liu agrees: “Being such a tiny place, there is a propensity toward homogeneity of ideas and concepts. For us to nurture a creative society, we need people from outside. In fact, one of the reasons why Singapore could succeed was because we were a heterogeneous society at the beginning, with people from all over the world.”

    But even as population numbers accelerate, Singapore’s achievements in urban development and innovation must be maintained.

    “We must continue to keep the city green and attractive for businesses, as well as good talent to come,” Liu told CNBC.

    Lessons from Singapore

    Apart from being well-known as a ‘garden city’ where flora and fauna is weaved into the urban fabric, the stability and efficiency of Singapore’s urban infrastructure serves as a role model for many developing nations.

    To emulate the success of the Southeast Asian city-state, governments in these developing countries will need to take the lead, according to 77-year-old Liu.

    “It may not sound democratic in a Western sense but in Asia or even Africa, the government must play a big role when there’s a great need for development. Because if you leave it to the businesses or private sector, they will inevitably focus more on the business side of things.”

    For that reason, it is imperative that government leaders educate themselves on urban development, the architect-planner added.

    “Leaders must be humble enough to learn what makes a good city. Mr Lee understood what made a good city from his days in Cambridge, but he spent all his life learning from urban success stories,” said Liu, referring to Singapore’s founding father Lee Kuan Yew.

    Singapore ‘needs entrepreneurs’ in the post-LKY era

    “Leaders must also be ruthlessly rational… and I often explain to foreign dignitaries that the highest authority in Singapore is something called the truth. The Prime Minister and President will listen [even if it was] a lowly civil servant who said the truth. That, to me, is an important aspect of Singapore’s success story.”

    Liu retold the story of Lee ‘s decision to construct low-cost flats in high-rise buildings – known as HDBs – even though such high-density housing was condemned by experts in the 1960s. Towering skyscrapers have since become a symbol of the nation’s successful public housing strategy and urban landscape.

    “We must subscribe to ‘clarity equals courage.’ It is not good enough to have courage and charge ahead blindly. it is also not good enough to just follow the world. You need to think what your city needs and have the courage to move ahead even [if it is] against the world’s trends,” he added.

    Lee Kuan Yew was Singapore’s first and longest-serving prime minister, who oversaw Singapore’s transformation from a sleepy British colonial outpost into a global metropolis within a single generation. He died on March 23 at the age of 91.

     

    Source: www.cnbc.com