any reasons why HDB flats is so expensive?
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Hi,
not really sure anyone asked this qn before..
Are there any specific reasons why HDB flats in SG are so expensive since only a family can only own one (and only for 99 years somemore)? I know that Sg is a small island, but that doesn't sound like a valid reason to me since one family can only own one....
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here's my take on this...
they factor into the cost the "land cost" which is set very very high, at "commercial cost"
cost of land in singapore is insanely high
it is NOT "subsidised"... not by a longshot -
coz of limited resouces like land space. that's y its so expensive. and on top of that hey still need to cover cost of building the flats etc etc
comparatively, hk flats are more expensive than singapore's one -
that's what everyone thinks...
think about this for a moment... how much did that land cost HDB? HDB is a government agency... and since when is it supposed to make a profit?
the can charge the people the cost of the building but why the cost of the land?
btw, off topic here, the price of the land, translates directly to the cost of rent.. which translates directly to the cost doing business... this cost is driving many investors away...Originally posted by Qoo`~`:coz of limited resouces like land space. that's y its so expensive. and on top of that hey still need to cover cost of building the flats etc etc
comparatively, hk flats are more expensive than singapore's one -
maybe cost not as in dollars and cents but the opportunity cost..if they dun use the land to build houses, they could haeve used it to build other stuff to generate income for them.. cant really derive how they arrive at opportunity cost.Originally posted by the Bear:that's what everyone thinks...
think about this for a moment... how much did that land cost HDB? HDB is a government agency... and since when is it supposed to make a profit?
the can charge the people the cost of the building but why the cost of the land?
btw, off topic here, the price of the land, translates directly to the cost of rent.. which translates directly to the cost doing business... this cost is driving many investors away...
btw, off topic here, the price of the land, translates directly to the cost of rent.. which translates directly to the cost doing business... this cost is driving many investors away... --> agre with u on this, that's y we have to improve on human efficiency to hide our other flaws and attract them, guess corruption-free govt is what that keeps us still going... -
opportunity costs, then they should have SOLD the land to the condo builders...
there is something inherently wrong when a building here, a tenement home (which it essentially is), costs more than an arm and a leg..
and for efficiency and effectiveness, there is only so much we can do... i guess we have to do 200% of what others do 70% of... but there is only so much we can do before we collapse and die... there is a limit.. and when we reach that limit, others will overtake us because they have more in the tank...Originally posted by Qoo`~`:maybe cost not as in dollars and cents but the opportunity cost..if they dun use the land to build houses, they could haeve used it to build other stuff to generate income for them.. cant really derive how they arrive at opportunity cost.
btw, off topic here, the price of the land, translates directly to the cost of rent.. which translates directly to the cost doing business... this cost is driving many investors away... --> agre with u on this, that's y we have to improve on human efficiency to hide our other flaws and attract them, guess corruption-free govt is what that keeps us still going... -
yes i agree.Originally posted by the Bear:and for efficiency and effectiveness, there is only so much we can do... i guess we have to do 200% of what others do 70% of... but there is only so much we can do before we collapse and die... there is a limit.. and when we reach that limit, others will overtake us because they have more in the tank... -
My late father used to own and run a car-repair garage at Bencoolen Street. His repair skills and honesty in his dealings with his clients was well known - he got to know many very senior govt servants who came to him for repairs. People like the late Pang Tee Pow and Goh Sin Tub for example. He was a favourite among yellow top taxi drivers who used to called him up even on Sundays for help. He always answered such calls and never charged more than a normal day's rate. He was among the first ones who converted petrol-driven taxis into diesel ones which he did single-handedly. As a child I had watched him at it.Originally posted by the Bear:that's what everyone thinks...
think about this for a moment... how much did that land cost HDB? HDB is a government agency... and since when is it supposed to make a profit?
the can charge the people the cost of the building but why the cost of the land?
btw, off topic here, the price of the land, translates directly to the cost of rent.. which translates directly to the cost doing business... this cost is driving many investors away...
When the govt took over the land for re-development he got only a couple of thousand dollars as compensation - not even enough for a one month temporary 'subsidised' rental at an alternative site at Eunos.
I wrote to Teh Chiang Wan (yes, the subsequently found to be corrupt minister) to appeal on behalf of my father. I was still in secondary school then. Nothing came of it. Not even an acknowledgement of my letter. That's the measure of the calibre of the minister. If you are a nobody, like my father with a large family to feed, you are just stepped on and ignored.
That Bencoolen site is now occupied by a multistorey building which no doubt the govt/URA has sold for millions of dollars. -
kinda reminds me of the $1 settlement for the condo and church fellas
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thanx guys~ for all the discussion. I had see the points now. But is there any way for the price of flat to go down...maybe just 20-30 % do. this actually help alot or all of the people trying to get a flat. but i guess is going to be difficult.....the drop of price will be unfair to those who already paid or still paying for it. Or maybe the HDB can back pay them in some way some how.......
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If land is a premium, then the Government should compensate the landowners at market values when their land is forcibly taken over by the Government for development.
Yet, many times the private landowners have to take the issues to the High Court, to challenge the paltry sum received in compensation of land located at Prime Locations.
However, the Government has the audacity to sell the same piece of land at more than 2000 times the compensation price.
URA designate land plots for HDB to build homes on, and such land are not paid by HDB.
Yet the price of the HDB flat will include the cost of land that is NOT based on the compensation sum paid to repossess the land from Private Owners, WHICH the HDB do not pay a single cent to take over to build the homes.
Why do HDB flat cost so much ?
The Government believe in Market Forces only when it flow to their advantage; when it is disadvantageous to the Government's interests, legislations will be passed to ensure that Market Forces WILL BE to their advantage.
Only GOD can change the forces of nature, and the Government is playing the Grand Arbitrator for their own interests.
Why do HDB flat cost so much ?
The Primary Purpose will seem to soak up the pool of Private Funds that are locked up in the CPF, which the Government will not be in a position to pay back.
This is a result of the generations of 'Baby Boomers' ageing, and their money in the CPF account is utilised on national investments in Fixed Asset Infrastructure; and a dwindling Population Growth is shrinking the pool of contributors to support the funds withdrawn by the ageing Baby Boomers.
As I have written before, for CPF to succeed, it need a NORMAL pyramid structure of more contributors entering the base of the pyramid structure, which should naturally be larger than the apex of the pyramid - (the apex being the ageing population).
However, the reverse is true in Singapore, with a large number of baby boomers of the late 1940's and early 1950's being bigger in numbers than the subsequent shrinking annual birth rates experienced from 1960's onwards to this day.
The present pyramid is an inverted one, with the wide base being placed on top, and the apex point of the pyramid being at the bottom !
Since there cannot be sufficient funds to pay out when each baby boomer reaches the statutory age of 55 years, the rules of withdrawals have been constantly changed, fine tuned with so many new studies to justify changes that when one reaches 55 years old, it is no longer possible to withdraw the entire CPF savings in one lump sum.
CPF monies will be paid out in regular instalments, at regulated age bar intervals; with new rules for direct deductions for Medical Insurance, Medical Care, Minimum Retention Sum for later age.
The ultimate effective method to resolve the CPF enigma for the Government is to make NINETY FIVE PERCENT (95%) Singaporeans to live in HDB or HUDC built Flats, paying for such flats at just slightly below market price for similar Privately built condominiums. -
simple
just becoz they can do that to us, if we could demostrate for our flats do you think they would still be that expensive?