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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.


Matilah_Singapura said...

The govt can and does concoct any arbitrary "explanation" -- usually defying any semblance of "logic" -- to justify it's absolute control on anything it choses to control.

The end-game of HDB is built into the system of public housing itself. HDB is and always will be the velvet covered iron-fist of the state to control the lives of the majority. It is politicised, and a tool of conquest on the people.

Because HDB occupies a large portion of the land in S'pore, private property owners are also affected by HDB policy as HDB plays a huge role in the supply/demand and price mechanism of the real estate market.

The govt will continue to control the prices, and the idea of "affordable" public housing is history. You will spend your life and hard work paying RENT to the govt for your HDB and at the end of your life you will have fuck all left.

Anonymous said...

Time bomb! No arguments about it!

Anonymous said...

Mother of all bubbles!

Anonymous said...

Priced to make sure your CPF is hollowed out.

redbean said...

the sunday times quoted this young couple Jayce Ng and Jacelyn Yong, both 30, married but no homes of their own. they went back to stay with their respective parents after an outing. they have tried many times but failed to buy a flat that 'they' think they can afford. of course the official line is to tell them to downgrade their expectation which is already nothing but a 4 rm hdb anywhere. they tried bto, 8x, half yearly sales exercises, resale flat only to see the prices running away.

it is a matter of time when this group of young people will say enough is enough and vote for alternative parties. they have no choice if they want a govt that will look into their plight.

telling them to downgrade their expectations when it is already low down will be very annoying.

Matilah_Singapura said...

redbean observed, quite correctly:

> telling them to downgrade their expectations when it is already low down will be very annoying. <

Yes, this is how the classic WELFARE STATE -- politicised to concentrate POWER on an elite class operates.

It doesn't matter whether the "welfare" is social welfare payments, or public school, or public transport, or public healthcare, or public housing... or whatever "free stuff" the politicians promise the people in order to bring some "credibility" to the politicians leadership ability (if any, usually it is all bullshit).

First: politicise the "welfare" by making it an issue during political campaign -- either as a carrot or a stick.

Second: Deliver the welfare as best you can after the election or other political process. This will ensure the people are fooled into supporting the political initiative, and thus the "credibility" of the politician and his party is "confirmed".

Third: After sometime it is realised that either the initial proposition of "free stuff" is no longer financially or economically tenable -- ration or withdraw the "free stuff". This is usually achieved by imposing regulation upon regulation which really jams up the lives of the people who believed in the original proposition for welfare.

In the confusion, give the people some song and dance story about "how good the govt was, but now times have changed.. but the govt is aware of the peoples' plight and is doing its best to fix it... blah blah blah" ad nauseum.

Because the state has essentially cornered the resources, there is no alternative for most people. They are essentially TRAPPED in the system and have no choice but to go along with the government -- who controls the physical resources AND the political landscape.

So before you support any state initiative at 'WELFARE' consider this:

1. When state offers "help" it comes in the form of absolute control.

2. Since resources are limited, and the state controls the resources, after sometime it will RATION out these resources in a less than fair or just manner. You have no choice but to take what the state offers, and when the state offers something it already has take its "commission" (usually a huge chunk of your money and/or freedom) for itself and its nepotistic partners -- for e.g. in the case of HDB a famous well-connected local law firm who has a monopoly on HDB conveyancing.

Summary for how welfarism can destroy the people and steal their country:

Political process ==> promises for "welfare" ==> delivery after election ==> curtailment, withdrawal or rationing of welfare (e.g. means testing) ==> no choice for the people who mostly are "trapped" in the system

Anonymous said...

In short;

they(Regime) makes us dig our own graves


without having to say

'You die, your business'.

Brilliant !