Since Boon Wan’s revelation that HDB was losing money for
every flat it sold and the amount was a scandalous billion dollar annually, he
has been questioned and ridiculed by many bloggers who simply could not believe
in what he said. Some of the attacks were quite personal and very unpleasant.
What is more worrisome are the losses incurred by HDB now and later on.
According to Boon Wan, the annual losses over the last few
years were about a billion, ie every year but not sure how many years he was referring
to, no matter how many flats were built. The building programme was ramped up
only last year after he came into office. The number of flats built was very
small during the watch of his predecessor that led to the current housing
problem and high property prices. So, how much is HDB losing for every flat
that it sold? And how much will HDB be losing if the population increases to
6.9m? At 6.9, HDB will need to build another 400,000 units to house the
increase of 1.6m people at 4 person per flat.
Let me hazard a guess. Taking a best case scenario to do a
rough calculation, the building of 50,000 units under Boon Wan, and using his
annual $1b loss, HDB should incur a loss of $20,000 for every unit sold. Tiok
boh? If $1b is the loss when only 10,000 units were sold, then the loss per
unit should be $100,000.
To build another 400,000 units, the loss could be in the
region of $8b to $40b depending on which number one is using. This is a
serious amount to lose and a big sum to save if the population is not increased
and there is no need to build the 400,000 units of flats. Would it be prudent and make more economic
sense not to increase the population to incur more losses? But this is not all.
Boon Wan is trying to bring down the prices of HDB flats from an average of 5.5
years of the buyers annual income to 4 years. This would definitely add to the
losses that HDB would have to incur. I am terribly worried as to where the Govt
is going to find the money to subsidise these losses. Yes, this is a lot of
money and it must come from somewhere and someone would have to pay for it.
Maybe Boon Wan has already worked out the sums and the
public need not have to worry. The flats will be cheaper and the losses would
be taken care of, somehow.
PS: The original $80b to $400b is wrong and should read $8b to $40b. I have amended the text above.
PS: The original $80b to $400b is wrong and should read $8b to $40b. I have amended the text above.
34 comments:
RB, I think it is not acceptable for hdb to lose money. The flat price should be adjusted up to give hdb a small profit.an adjustment of $25,000 per unit based on 25000 unit built in the past should eliminate the losses of 1 billion
Agree. How can make HDB lose so much money. There is no free lunch. Where is the money coming from.
The people are so ungrateful. The govt is subsidising them so much and they are still complaining. Do they want the HDB to keep losing money meh?
Thoughts of a Cynical Investor
[Gd Point]
"But everything the govt does
is to serve its own purpose.
We are lucky
if one of its purposes happen to coincide with ours.
It is not the same as saying
the govt exists to serve the people."
http://atans1.wordpress.com/2013/04/28/gd-point/
Sorry should read $40000 adjustment just an extra year of medium income family salary, no big deal lar. The country should be placed before individuals
Lucky TAN
Sunday, January 14, 2007
[The Art of Subsidizing Housing in Singapore]
"There is a spate of letters in the Straits Times forum page
asking whether HDB flats are subsidized, how much does it cost to build a flat, etc. can the HDB be more transparent...?"
http://singaporemind.blogspot.sg/2007/01/art-of-subsidized-housing.html
I'll believe China has landed a man on the moon sooner than the words of this S$8 heart by pass million dollar mintster.
If HDB is losing so much money on each HDB lease, remember guys that lots of foreign talent shit are also housed here so in effect, the country is subsidizing these trash who not only takes away your jobs but makes you sweat and unable to breathe on the trains as well.
This is the only country in the world that treats aliens better than it treats its own citizens.
Land and construction costs are the two main items going into the price of an HDB flat. At today's exorbitant price of public housing, either the land costs has been inflated or the contractors are being overpaid both at the expense of the citizens.
This cow is just bull shitting.
Cow bullshitting!!!
Flats in sixties at 9800 to 30500 no lost
Now flats at 135k to 500k lost???
True or false.he'll have to answer for it when his time comes..
going by PAP's standard of logic, then Apple is losing billions of money, never mind that it earns record amount of profit in the whole world. Why ? Because think how much Apple is losing on every product it sells when it could have markup by additional 20% more, on top of the profit it already earn per device. And for every device that Apple sell for 20% less markup, it ends up in losing billions.
Shareholder of Apple, please remove Tim Cook and their inept management then.
what do you think ?
the guru has spoken
liu tai ke
*with proper planning, sg has no problem accomodating 10m*
wow !@#$%
The guy old already so senile liao
What Boon Wan is saying is that if the HDB had marked up the prices of HDB flats more than they already had done, there would be an extra profit of $1 billion on top of what they already made.
Now that they did not do it, so the extra $1 billion is now considered a loss to the HDB.
Singaporeans should understand the PAP's deifinition of affordability, equality, transparency and staying united.
If there is indeed lost, it is due to many administrative process, construction inefficiencies and over value
of land prices.
Khaw must be thinking of selling
the land to property developer
for big bucks!
My ex-boss, a Europeans said that
our land prices is ridiculous, that is in early 2000s!
If there is indeed lost, it is due to many administrative process, construction inefficiencies and over value
of land prices.
Khaw must be thinking of selling
the land to property developer
for big bucks!
My ex-boss, a Europeans said that
our land prices is ridiculous, that is in early 2000s!
In a way Mah Bow Tan is smarter than Khaw. He must have known that every flat he sold HDB was losing a lot of money. So he decided to build less to lose less.
Now Khaw, what is he thinking, knowing that HDB will lose money and he wants to build more and more. And by 3030, how many hundreds of thousands of flat will he be building and how much more losses will HDB be losing?
Why like that?
The government doesn't lose money lah. Least of all the PAP government.
In the private sector, if you lose money, you suffer personally and could very well lose your business.
In the government, if they lose money they just tax the people some more to make up the losses, and they not only get to stay in business, but usually get more powerful as a result of losing money.
HDB's losses will be paid for by everyone. Individualise the gains, collectivise the losses.
i.e. The individuals who "buy" (lease) HDBs will see their property increase in value over time. They benefit individually. However to build the units, each incurs a 20k loss -- which is paid for by everyone -- the collective.
This is a typical lose-lose proposition -- as is the case with every government "policy", especially the ones which are Pyramid/ Ponzi schemes.
Tip: To maximise your benefit from a Ponzi scheme, you must strive to get in early at "the bottom". If you get in too late: you are the sucker who ends up being robbed of your cash.
When u need a place to live it is not up to u lar. Matilar, a home is not like other investment where u can wait for timing. I waited till I postponed my marriage for 5 years and now at grandfather age, my kids are still studying. Yes I waited and got in the right timing but pay in other way.
So don't be an asshole talking nonsense. Knn to u
Cannot knn matilar.
Cannot slaughter sacred cow.
The cow is holy, very holy.
patriot
A lie told often enough will become half truth which is the best kind of lie.
Using his assumption, if a comet falls on sgland, hdb will make a lot of money?
If HDB loses money, why they allow PRs to buy them? If HDB loses money, why pay the PM million dollar pay? If HDB loses money, why not allow more players to build HDB?
If HDB loses money then increase the property tax for those higher end housing. Property tax is really too low in singapore with comparison to the housing price. Property tax should be around 10% of the value of the housing not annual value. Any additional revenue for the gov should be spend on building better infrastructure for the future not to increase the gahmen payroll.
Actually anyone can KNN me anytime for any reason. It's not like I give a fuck about opinions from strangers. I really don't :-)
So to those who don't have what it takes to face themselves, and blame every little bad thing on something or someone else, it would pay to remember:
"You Can't Cheat An Honest Man"
and
"Living Well IS The Best Revenge"
Got awesomeness yet?
Matilar, last time I complimented u but u not use to it mah and u said u prefer people knn u. So they are just fulfilling your wish. Knn to u too
I wouldn't be worried about HDB's "losses" if it is based on "commonly accepted accounting principles", just like how Singapore Airlines buys 49% stake in Virgin Atlantic for $1.65 billion, sells it for $360 million, and books a profit of $322 million.
What is reported need not reflect reality as is commonly perceived, understood and accepted.
I would worry more for some people's souls, not that I care.
HDB does not sell flats.
HDB sells leases to us.
The same way a car rental company leases a car to us.
HDB retains ownership of the HDB flat.
Since no HDB flat is ever sold to a Singaporean;
How can Khaw say that HDB loses money "selling" HDB flat?
KWB also mentioned land cost must include infrastructure like roads, MRT stations, etc. Hmm... I thought roads are taxed (road tax?), and MRT companies make tons of profit year in year out. So, the brainy people here, please tell me what am I missing?
Lee Conned You?
That's what you missed?
ST Forum 29April
[No to exploiting NGOs, VWOs for political ends]
Ho Ka Wei
Director of Corporate Communications, Ministry of Culture, Community and Youth
"The Govt has been supporting AMP since 1990.
It will continue to do so,
so long as AMP remains focused on uplifting the Malay community.
But govt support for AMP - or any other NGO - must cease
if it lets itself be misused to advance the political interests of any group or individual.
Mr Nizam has consistently used the AMP platform to promote himself.
He has pushed for racial politics by trying to revive AMP's "collective leadership" proposal in the guise of a 'community forum' led by AMP.
In strident postings on his personal blog and his Facebook group Suara Melayu Singapura (Voice of Malays, Singapore),
he identifies himself as a key AMP figure.
Mr Nizam is entitled to pursue his political activities.
But he should not use AMP as a platform and a cover to promote his race-based politics."
http://www.straitstimes.com/premium/forum-letters/story/no-exploiting-ngos-vwos-political-ends-20130429
Matilah, Boon Wan said HDB losing hundreds of millions every year and you said no. You saying Boon Wan lying?
Do pray for Khaw Boon Wan's health.
If and when he remains healthy to stay as the housing minister, he will build more and subsidize sinkies more to make housing affordable. Imagine another takes over him and is not as caronh and generous. Then many will be homeless leh.
caring to replace caronh.
Apology.
Mah Bow Tan had during his watch as the MND minister stated that HDB flats remain affordable and supply is sufficient. Khan Boon Wan ramps up the supply relatively to the paltry number built by MAH and has to implement 7 rounds of cooling measures to address high and ever rising prices. Either Mah Bow Tan was lying or Khaw is nuts. Which do you choose to believe?
Mah built less and HDB's deficit was $2 billion. Khaw supposedly keep prices stable by building more and giving more subsidies to 'delink' prices of new flats from resale flats. Yet under his watch, HDB's deficit is much less? What gives? More water leaking from more holes in the dam.
Hi everyone, please note the typo error in the earlier numbers '$80b to $400b' which I have corrected and should be '$8b ot $40b'.
My apologies.
$80 to $400 billion? Do you want to wipe out our reserves?
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