Source : Straits Times – 17 Sep 2009
I APPLAUD the new measures by the Government to curb speculation in the property market and reinstate the Government Land Sales Programme.
However, they do little to alleviate the structural problems at the root of the resale HDB market and the frustrations of many home seekers. It is too easy to blame cash over valuation (COV) for the rampant rise in resale prices or repeat continuously that resale HDB flats are affordable.
Four measures could be taken to significantly improve the supply of resale HDB flats and thus lower prices.
~ HDB flats should be affordable housing only for genuine home owners who occupy the flats.
They should not be used for investment or rental income.The resale market is still tight because many owners, who have already moved out, are simply holding on to their property or hoping for a collective sale.
If owners do not live in their flats any more, they should be put on the market immediately.
~ There should be an income and assets cap for owners of HDB flats.
If the owners are very successful in life after buying an HDB flat, they should leave their property on reaching a certain threshold and sell it.It is not right that families with multiple properties and very high salaries are able to hold on to their HDB flats.
~ Have a staggered income ceiling instead of a blanket one of $8,000, applicable across all HDB flats ranging from $200,000 to $600,000.
For example, have an $8,000 income ceiling for flats valued below $400,000, a $10,000 ceiling for flats valued above that and below $600,000, and $12,000 ceiling for flats valued above $600,000.
~ Take property agents out of the equation.
HDB should stimulate and facilitate direct owner-buyer contact.I urge HDB to consider these measures to tackle the problem at its root and let go of its free-property-market thinking.
Lim Hing Kok
No comments:
Post a Comment