Return HDB its due recognition

I do find it quite hard to agree with the writer of the article. Personally, I feel that HDB had always stayed true to its mission and there is nothing to "return" to.

HDB had always been about "developing affordable, quality homes, and a better living environment" and has continued to do so. One just needs to spend time on the HDB website to realize that the thought processes and work behind the various guidelines and differentiated schemes is nothing short of clarity and meticulousness in achieving long term strategic plans to ensure a high percentage of home ownership which is crucial for an aging society.

Let's try to list down some guidelines in every resale process. First and foremost, in any open market, as long as there is a willing buyer and a wiling seller who agrees on the market price, a deal is sealed. Market prices may be speculative is the buyer is willing to fork out a premium. This leads to an even further increase in prices when the then buyer decides to sell. That is why HDB puts in place several measures to counter that, such as assessing buyer's and sellers' eligibility to buy or sell, buyer's ability to service the loan based on TDSR (Total Debt Servicing Ratio) and MSR (Mortgage Servicing Ratio), guidelines to determine CPF usage and insisting that buyer and seller follow a timeline strictly in any resale procedure. Sellers will also need to use the proceeds to pay off outstanding bank loans and CPF with interest. Citizens can only own one HDB flat each time and each time they buy or sell, stamp duties are payable. Elderly owners also have the option to sell the remaining lease back to HDB so that they can be covered at least to age 95 while receiving a payout monthly. As you would have know by now, the sales and purchase of flats are highly regulated and I've barely even scratched the surface.

HDB Flats are never tools for investment and speculation. The recent spike in transacted prices, driven mainly by the disruption to the building and construction sector due to Covid reflects a high demand for resale flats due to the shortage and delay in supply for affordable subsidized BTO flats. There are also other factors at play such as the desire for bigger homes or homes in greener areas as working from home becomes the default. If they are unable to afford it yet, they will turn to renting, which also make financial sense if they do not wish to be tied down by mortgages. This brings me to the other reason why I find it hard to agree with the writer's perspective of tightening rental conditions.

HDB Flats play a crucial role in nation building and strengthening of the social fabric. I trust that authorities will continue to regulate it closely for the benefit of all.

#hdb #nationbuilding #singapore

https://www.straitstimes.com/opinion/return-hdb-to-its-roots-of-building-homes-not-short-term-assets