HDB's version of subsidy, affordability and fair prices
Today's Sunday Times has a little article to explain how HDB determines the prices of flats and I believe this must be HDB's version. I quote, "A new flat's equivalent market price is first determined by looking at the recent transacted prices of resale units nearby. Adjustments are then made to account for factors like location, finishes of the flat and other attributes The price reflects the flat's value at the point of purchase and is what people are willing to pay on the open market for such a unit. The HDB then sells it at a significant discount, which is the subsidy given by the govt. The HDB sells flats base on market price instead of cost as this is the fairest way of pricing new flats. A market base pricing approach ensures that all groups of buyers enjoy similar discounts to the market and would be fair to those who are buying other HDB flats today...." There you have it, the definition of fairness, subsidy and market pricing are all there. And this is not only the HDB's definition, it is also the current govt's definition. They have meticulously come to these definitions as the fairest and best for the citizens. Like it or not, agree with it or not, you just have to accept it. I wonder if they ever consider that the high prices of resale flats is also contributed by some who got a windfall from enbloc sales, by foreigners and by some who are urgently in need of a flat? Would any other worthy political party offer another set of definitions as their party's stand to challenge these definitions in the next election? Any change to the present definitions must only come from an alternative party. So far the alternative parties are not offering anything on this as far as I know of. The people just have to live with the govt they voted in and accept what the govt considers as the best it can offer. The sad thing is that we don't have a worthy alternative party with a clear set of party manifesto to offer to the people, yet. Or a group of passionate leaders with fire in their belly to contest the election to serve the people's best interests that is different from the current govt.