Singapore prepared to build 100,000 flats to meet demand

[land118]

http://sg.news.yahoo.com/singapore-p...201819283.html

Singapore prepared to build 100,000 flats to meet demand

Singapore has the resources to build "more than 100,000" public residential flats in the next five years to meet demand and stabilise prices, the country's top housing official said Wednesday.
The remarks by National Development minister Khaw Boon Wan came amid complaints from citizens about runaway housing prices, a major issue in parliamentary and presidential elections this year that saw the ruling party lose significant popular support.
Speaking in parliament, Khaw said his ministry was building 50,000 public housing units -- called housing development board (HDB) flats -- by 2015 to alleviate "an imbalance in housing supply and demand".
But he added that his ministry could potentially supply over 100,000 units in the next five years if demand remained high.
"If demand remains strong, we have the resources and the capacity to build more than 100,000 HDB flats during this term of (the current) government," he said in parliament.
The current government, headed by Prime Minister Lee Hsien Loong, was elected for a six-year term that ends in 2016.
He said measures introduced to cool down the property market have stabilised public housing prices in the past few months.
He also assured that middle income newlywed couples and low-income households will be given priority to own homes.
"I am confident that we can address the temporary problem of supply-demand imbalance, with clear improvements for the newlyweds and the vulnerable families within two years," he said.
In the May polls, the ruling People's Action Party (PAP) lost an unprecedented six seats out of the 87 at stake and its share of the vote fell to an all-time low of 60 percent from nearly 67 percent in the previous election in 2006.
In presidential elections that followed in August, the PAP's de facto candidate won by a slim margin over his three opponents who were all critical of government policies.

[phantom_opera]

This can only mean he is not sure of how many immigrants are there and how many BTOs to build ..... if he is serious in controlling prices, must build more rental flats to house immigrants lah

Just a rough estimate

We have 15k newly weds every year, 500k immigrants and serious under-supply since 2005, is 100k BTOs enough? Where 500k immigrants going to stay and i am sure we continue to take in 30k SPRs every year

[devilplate]

This can only mean he is not sure of how many immigrants are there and how many BTOs to build ..... if he is serious in controlling prices, must build more rental flats to house immigrants lah

Just a rough estimate

We have 15k newly weds every year, 500k immigrants and serious under-supply since 2005, is 100k BTOs enough? Where 500k immigrants going to stay and i am sure we continue to take in 30k SPRs every year

[ysyap]

This can only mean he is not sure of how many immigrants are there and how many BTOs to build ..... if he is serious in controlling prices, must build more rental flats to house immigrants lah

Just a rough estimate

We have 15k newly weds every year, 500k immigrants and serious under-supply since 2005, is 100k BTOs enough? Where 500k immigrants going to stay and i am sure we continue to take in 30k SPRs every year

Just a rougher estimate

15k newly weds staying as couple means 7.5k units. 30k FT/FWs so if say 15k units for them from resale market, vacating the owners to move either to 2nd BTO (10k) or PC (5k), so its an annual demand of about 17.5k for new HDB flats. Over 5 years, it'll be 87.5k units so its still within the 100k flats available. Still decent lah.

[devilplate]

this 100k tok tok only lah

i am quite sure next bto low subscription too

one thing getting scary liao, KBW dun care about 75% rule oredi....just go ahead and build liao

those who hf HDB worth more den 500k(currently renting out) can consider to sell

[phantom_opera]

Just a rougher estimate

15k newly weds staying as couple means 7.5k units. 30k FT/FWs so if say 15k units for them from resale market, vacating the owners to move either to 2nd BTO (10k) or PC (5k), so its an annual demand of about 17.5k for new HDB flats. Over 5 years, it'll be 87.5k units so its still within the 100k flats available. Still decent lah.

From 2005-2010 I think HDB only build 6k BTOs on average, in that period we took in 500k SPRs ... how?

I agree next BTO ulu located will be undersubscried

[gn108]

Dynamics changing.
Interesting next 4 1/2 years with Infrastructure developments (HBD/PC, MRT/bus/roads, public goods) vs more migrants/PRs/FW/FT.

When, How and Where to cram 6.5m people without sanitary issues getting in each other's way.

[kane]

I was on the NEL this morning. Quite crowded there. Whilst we build all these houses in Punggol Senkang, what are the train crowd going to look like in 5 years?

[thomastansb]

Yeah.. MBT took 7 years to clear 15k of flats. KBW will be in serious shit.

this 100k tok tok only lah

i am quite sure next bto low subscription too

one thing getting scary liao, KBW dun care about 75% rule oredi....just go ahead and build liao

those who hf HDB worth more den 500k(currently renting out) can consider to sell

[phantom_opera]

MBT clearing 15k flats that time Not so many immigrants mah ... now we have so many, you see between 2001-2004 so few PRs approved:



This one has not counted those non PRs working in SG hoh

It is also interesting to note that the number of Singapore permanent residents has almost doubled in the last 10 years, from 287,500 in 2000 to 541,000 in 2010:
Most of the increase is accounted for by immigrants from Malaysia and the Indian subcontinent, according to census data released by the Department of Statistics yesterday.
The share of Indians in the PR ethnic mix climbed from 14.9 per cent in 2000 to 20.4 per cent this year. In absolute numbers, they more than doubled, from 42,700 to 111,000.
The share of Chinese in the PR ethnic mix dropped from 76.1 per cent to 61.4 per cent, although the total number increased from 218,800 to 332,000.

[ysyap]

From 2005-2010 I think HDB only build 6k BTOs on average, in that period we took in 500k SPRs ... how?

I agree next BTO ulu located will be undersubscried

That was under MBT. Now KBW is much more aggressive and urgent than MBT coz he more kiasu... LOL! At least that was the impression he gives me.

[ysyap]

I was on the NEL this morning. Quite crowded there. Whilst we build all these houses in Punggol Senkang, what are the train crowd going to look like in 5 years?

. We've learn from the last GE through our dear PM that MOM and MND don't communicate coz he said govt didn't expect such a huge influx of foreigners. It will therefore not be surprising that MOM and MND do not communicate with LTA. Come next GE in 5 years' time, LTA will have to account for the bad crowd in their transport system which seriously is not catering to the projected 6.5mil. Furthermore, now they are also trying to discourage vehicle ownership and COE premiums is at recent highs, so MRT and buses situation will only become worse! The circleline and DTL will only provide slight improvements but not address the dire situation.

[ysyap]

Yeah.. MBT took 7 years to clear 15k of flats. KBW will be in serious shit.

KBW's problem is not clearing excess flats but to build more flats. He don't need to worry about building oversupply coz its just a buffer for more immigrants to come in. His should worry about not building enough flats which may be the situation at the rate they are welcoming foreigners!

[august]

this 100k tok tok only lah

i am quite sure next bto low subscription too

one thing getting scary liao, KBW dun care about 75% rule oredi....just go ahead and build liao

those who hf HDB worth more den 500k(currently renting out) can consider to sell

ya need to distinguish between reality and political hot air.
100k units? 30k more feasible.
now is still the yr 1 of a 6-yr term. Plenty of time for him to do tweak later.

[ysyap]

ya need to distinguish between reality and political hot air.
100k units? 30k more feasible.
now is still the yr 1 of a 6-yr term. Plenty of time for him to do tweak later.

100k is possible. 20k a year, no problem. He seemed more steady than MBT so I believe he can deliver.

[phantom_opera]

100k? Punggol / Sengkang will be full by then ... SBS share can buy already

[august]

construction industry already said realistically they can build max 20-25k flats this and next yr. So wat is KBW talking about? but if hdb insists on 100k flats (20k for each of next 5 yrs), then naturally construction costs is going to be pushed up further. this is why his disclaimer of "if construction costs does not rise". This means stabilisation of new flat prices, if any, will not come from drop in construction costs but from reduction of land valuation, but is this even possible since land valuation is based on resale mkt price.
so obviously new flats must come from areas where land valuations are relatively low i.e. far flung ulu areas.

so far i dun see this new MND minister has initiated anything meaningful leh. What is needed is stronger policy measures, but so far he has not shown he has the politically will to do it, especially re PRs buying HDBs and the resale mkt hehe.

[kane]

If he was looking to do a shock and awe strategy for people to calmly consider their housing needs, he has certainly succeeded with the headline number of 100k. My advice to the young couple starting their family is plan ahead the size you need. Go bigger if you're planning to start a family. Every time you change hands, you have to pay a chunk of stamp duties.

[ysyap]

100k? Punggol / Sengkang will be full by then ... SBS share can buy already

He did suggest building two new towns so just fill up seng kang and punggol then move on the build these new towns lor...

[ysyap]

Every time you change hands, you have to pay a chunk of stamp duties.

Everytime change hands, govt gets the chunk of stamp duties!

[ysyap]

so far i dun see this new MND minister has initiated anything meaningful leh. What is needed is stronger policy measures, but so far he has not shown he has the politically will to do it, especially re PRs buying HDBs and the resale mkt hehe.

He's simply too cautious on every front. Don't want to offend potential buyers, whether locals or PRs.

[gn108]

KPIs and big bonus at stake.
"I will stop here."

He's simply too cautious on every front. Don't want to offend potential buyers, whether locals or PRs.

[phantom_opera]

This kind of solution from MND/LTA no need to pay 3 millions per year ....lol

[ysyap]

This kind of solution from MND/LTA no need to pay 3 millions per year ....lol

The committee reviewing pay package hasn't complete their study yet? How long more?

[gn108]

I saw Gerard Ee and another speaking at Fullerton Hotel en-route to One Fullerton last month. From the sounds of it, they just finish one of these meetings. All very hush-hush though.

[howgozit]

KPIs and big bonus at stake.
"I will stop here."

More likely, market turmoil at any whisper of more CM.

[Regulators]

All this just to appease the minority... does kbw seriously think more flats will bring prices down? Hdb can sell a 4 rm flat dirt cheap at $150k, but does it stop owners of these flats from later selling at $500k or $600k after five years? Which hdb flat buyer would want to buy cheap and have their flats remain cheap forever? Approach all wrong...

[kane]

All this just to appease the minority... does kbw seriously think more flats will bring prices down? Hdb can sell a 4 rm flat dirt cheap at $150k, but does it stop owners of these flats from later selling at $500k or $600k after five years? Which hdb flat buyer would want to buy cheap and have their flats remain cheap forever? Approach all wrong...

I don't think the objective is to bring down prices. It is to prevent runaway prices rather.

[Regulators]

How do prices even run away when there are ppl willing to pay for those prices? As I said, the current hdb policies are aimed at appeasing the minority aka the first time home buyers and imo kbw is overdoing it. Do these first time home buyers make an oath to sell their flats cheap next time? What makes kbw think that these first time home buyers will not be the cause of future runaway prices?

[thomastansb]

When the market is filled with resale flats + those who has 6 months to dispose + financial crisis + no foreigners + no liquidity (flow back to US), those who need to sell will be in serious trouble. Never say never. In 2007, people are saying property prices will never drop. Really??

All this just to appease the minority... does kbw seriously think more flats will bring prices down? Hdb can sell a 4 rm flat dirt cheap at $150k, but does it stop owners of these flats from later selling at $500k or $600k after five years? Which hdb flat buyer would want to buy cheap and have their flats remain cheap forever? Approach all wrong...