Dear Mr. Tan
We could improve the affordability of owning a HDB flat without crashing the prices of existing HDB flats by:
1) With immediate effect, cut the prices for all new HDB flats by 5% and:
rebate 4% to those who had purchased their flats within 1 year
rebate 3% to those who had purchased their flats within 2 years
rebate 2% to those who had purchased their flats within 3 years
rebate 1% to those who had purchased their flats within 4 years
rebate 4% to those who had purchased their flats within 1 year
rebate 3% to those who had purchased their flats within 2 years
rebate 2% to those who had purchased their flats within 3 years
rebate 1% to those who had purchased their flats within 4 years
2) for the next 5 years (2011 to 2016)
peg the increase of prices for new HDB flats at 3% lower than the increase of the national median income.
peg the increase of prices for new HDB flats at 3% lower than the increase of the national median income.
For example : if the increase of median income is 5% for that year then the increase of prices for new HDB flats should be 2% for that year. If the increase of national median income is 2% for that year then the prices for new HDB flats should be decreased by 1% for that year.
With 1) & 2), we can achieve the effect of a 20% “reduction” to the prices for new HDB flats within 5 years without crashing the prices for existing HDB flats.
With 1) & 2), we can achieve the effect of a 20% “reduction” to the prices for new HDB flats within 5 years without crashing the prices for existing HDB flats.
For the longer term, the increase in prices for the new HBD flats should be pegged to the increase in national median income.
Pang
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