Mission confused or mixed up kids
The pricing of HDB flats to market prices is just a natural and convenient process. When market prices go up, prices of HDB flats must go up. But HDB is also kind enough to price them with a market subsidy so that the buyers still pay less than the market price. Is that not fair? Yes it is fair, and very logical and very reasonable too. What about the immediate and long term consequences of higher property prices? The immediate problem to the new buyers is that their money shrinks every time the market price goes up. The young couple could be saving for their $300k dream flat. And they think they have saved enough only to find that money still not enough because the $300k flat is now $500k. Thanks to the appreciation of property prices and HDB’s pricing policies. And thanks to the great subsidy the HDB is giving them. But money still not enough after several years of savings. It is like chasing an illusion. Ok, buy a smaller dream flat. Don’t buy what you cannot afford. That’s life man! Profit is good. Why shouldn’t HDB make the extra profit when they can? Making profit from who and for what? The person who made this clever decision should be rewarded with a $10m bonus. The decision is so brilliant and the profit so clean and easy. But he shall remember that he has just hung a $200k millstone on the neck of the new buyers. And the affected buyers are not going to think kindly of it. Even donating his millions to charity will not be enough to amend the losses or burdens that the people will have to carry. As a govt body, the mission is to serve the people, not simply making more profit from every opportunity. It is an unnecessary decision that HDB need not make. A smaller increase would be much palatable. Instead, the $200k will be seen as an opportunistic decision by a mixed up organisation that forget its main mission. And it will reflect badly on what govt is all about. When the roles of govt and business got entangled and the bearing lost, this is what the people can expect. When the govt thinks it is doing business and when business thinks it is the govt, everything will be turned upside down.