Various categories of public housing

Our HDB flats have become expensive and is now a burden for many young people to start their first home.

To solve this problem, I have suggested that a new category of HDB housing be offered based on cost of the flat. This could bring down the price by 30% to 50%. The resale value of this new category will be based on the cost of a new flat (which will increase with inflation) less depreciation of the flat.

I believe that it is possible to have the various categories of HDB flats to co-exist side by side. Right now, we have HDB and executive apartments. What is wrong with a third category, with different conditions?

Some people may choose to pay more for the "market based" HDB flats. Other people may prefer to pay less for the "cost plus" HDB flats. Give them a choice. From my survey, the demand for "cost plus" flat is likely to be higher than "market based". It does not matter how the final choice will turn out. It is good to offer the choice.

Tan Kin Lian