On the flip side, if the proposal is unattractive, that would mean that the public housing model would have failed. “Does that not make it harder for first timers to get a flat and does that not worsen the current concerns that some have about accessibility?” she asked. Why would anyone want to purchase anything on the resale market when one can purchase a new flat at a very low price?Īnother problem is that if it’s attractive, it will attract plenty of buyers - making it even harder for first-timers to purchase their flats.
“Members have also pointed out that implications of upheaval in the resale market and their concern that the value of existing homeowners assets would also be negatively impacted,” the SMS said. That is because there’s no housing grants and subsidies like the current BTO system, which is based on affordability.Īnd what happens when sellers with genuine needs (like those who need to downsize) don’t have enough money to pay the land cost plus interest to the Government? “So it’s possible that prospective sellers of these flats are looking at actually a much higher price that they have to pay to the government if you add everything up together,” she said. While there may be a lot of applicants for BTO flats due to their low price under PSP’s proposal, these applicants will face a huge clawback, in the form of land cost plus accrued interest, if they intend to sell their flats in the future. In fact, SMS Sim said his proposal is problematic both ways: there are problems if it’s attractive and there is another set of problems if it’s unattractive. Senior Minister of State for National Development Sim Ann said this on the second day of the housing motion debate today (Feb 7, 2023) in Parliament.
Progress Singapore Party’s NCMP Mr Leong Mun Wai’s alternative housing plan does not solve any problems and raises more questions than it answers.
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