Home News National Development Minister says HDB is "good store of value" - no...

National Development Minister says HDB is “good store of value” – no mention of “asset enhancement”

Author

Date

Category

- Advertisement -

Minister for National Development, Lawrence Wong, commented in Facebook that the Housing & Development Board (HDB) flat is a “good store of asset value”. His comments come hot on the heels of his recent blogpost where he said that for the “vast majority of HDB flats, the leases will eventually run out, and the flats will be returned to HDB, who will in turn have to surrender the land to the State.”

(Read also: Lease will run out for majority of HDB flats without SERS, Minister Wong confirms)

Mr Wong’s earlier comments cast doubts if the Government was scaling back its Asset Enhancement Programme. Donald Low, an Associate Dean at the Lee Kuan Yew School of Public Policy, commented on the news of Mr Wong’s blogpost saying: “This is as close to an admission of the mistakes of that policy from government as we’re ever going to get.”

The Government implemented market pricing and the asset enhancement policy for public housing in the late 1980s. The aim of this programme was to allow heartlanders a chance at enjoying the appreciation of their HDB flat – which is a key asset for most of them. The programme led to more than 10 fold increase in the price of HDB flats in the past 30 years.

- Advertisement -

Source: likedatosocanmeh

In his Facebook post Mr Wong gave several examples why the HDB flat was still an asset which can be monetised for retirement, but he made no mention of the Asset Enhancement Programme.

<Leasehold Properties as Assets> My last blog on choosing a HDB resale flat generated some discussion and debate. Let…

Posted by Lawrence Wong on Tuesday, 11 April 2017

Socio-economic commentator Chris Kuan responding to Mr Wong’s Facebook post said that there no getting away from the “gorilla in the room”, which is the fact that HDB’s value will be $0 at the end of the 99-year lease period.

“The depreciation of HDB flat over time will still be driven by the reversion to zero at the end of lease. That in turn will always drive the amount of money extracted from monetization of the flat. The worse outcome is a double whammy of the depreciation effect of reversion to zero in the lease coupled with a sharp fall in real estate prices…the MND may try to avoid that issue but it is what drives the amount of money HDB owners can get out of their “good store of value”. ” – Chris Kuan

Send in your scoop to news@theindependent.sg 

- Advertisement -

First two out of group of ang mohs and foreigners fined over yacht party near Lazarus Island

A group of men and women were seen flouting safe-distancing measures while on a yacht at Lazarus Island on Dec 26 last year. The first two members of the group to face the court — Singapore permanent resident Mark Lau San...

Minor injuries for driver after SUV flips over on SLE

Singapore—A white sport utility vehicle (SUV) turned turtle on the Seletar Expressway (SLE) before the Woodlands Avenue 12 exit on Monday morning (March 1). One man sustained minor injuries in the incident. However, he refused an offer from the Singapore Civil Defence Force...

Monitor lizard eats python whole in Ulu Pandan canal, throws up and burps

Singapore – A monitor lizard was spotted eating a large python in Ulu Pandan canal. Passers-by watched, snapped pictures and pressed the video button, but guess who threw up his lunch? The lizard. The python proved too much to swallow. "Python hunted...

Send in your scoop to news@theindependent.sg 

Theindependent