HDB Sings a Different Tune

Singaporeans continue to tolerate the constant name calling from its leaders. From "quitters" to "sheeps" and lately "daft", Singaporeans are chided for raising specific concerns that affect their lives, the latest being the rising prices of public flats.

I have mentioned before that the issue of public housing affordability is a hotly debated topic that could dominate the next general elections. And from the looks of how recent events have unfolded, it appears to be the case. Opposition parties are reportedly gunning for Tampines GRC where Minister for National Development Mah Bow Tan is the MP. Under Minister Mah's charge is the Housing & Development Board (HDB).

For the purpose of rational public discourse let us examine the mission statement of the HDB. Its mission is to provide affordable homes for all. The HDB has complete monopoly on the public housing market. It controls the supply of flats which indirectly affect prices.

By ensuring demand meets supply, HDB can help ensure flats remain affordable. In the past few years, however, the HDB has not been building sufficient flats to meet the increased demand from both Singaporeans and foreigners, causing property prices to shoot upwards. For instance in 2008, the HDB built only 3, 183 new flats when the government welcomed over 90, 000 permanent residents and 20, 000 new citizens in the same year.

The relentless influx of foreigners have pushed the Resale Price Index (RPI) by 3.9 percent to reach 150.8 points in the fourth quarter of 2009. In the same period, overall COV went up by a full 100 percent from $12, 000 in the third quarter to $24, 000. In addition, HDB's policy allows foreigners to compete directly with Singaporeans for public housing. Median wages have also been depressed, unable to keep up with the increase in the price of HDB flats. These factors have caused much hardship among young couples and singles.

Nevertheless, the HDB has been adamant that its flats are "affordable". Lately, however, it is singing a different tune with a few cosmetic changes announced and the promise to ramp up more supply. There was never a word of apology from the HDB. Media queries have been stone walled.

Not too long ago, Singaporeans were warned that if we were ever to emigrate, we will be treated like second-class citizens elsewhere. But look right in your own backward. Aren't we already second-class citizens competing directly with foreigners for housing and with ethnic enclaves emerging in our heartlands?

Since Singapore is run as a corporation, Singaporeans are therefore its rightful shareholders who have the ability to assess if our government is performing by voting wisely.

Khalil Adis is an experienced property writer and is best known for pushing the envelope when he was editor for Property Report Singapore-Malaysia-Indonesia magazine. During his tenure at Property Report from August 2008 to August 2009, he elevated the standard of the magazine by accomplishing the impossible - he snagged exclusive interviews with some of the region's high profile players in the real estate industry such as Singapore's Minister for National Development Mah Bow Tan, YB Datuk Peter Chin, Malaysia's Minister of Energy, Green Technology and Water and Dato' Ahmad Fuad Ismail, Mayor of Kuala Lumpur.