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HDB DBSS: 76%, 25% or 15%?

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Leong Sze Hian /

I was surprised to read the blog posting by Minister of National Development Mr Khaw Boon Wan, ‘Startling But False‘. Allow me to explain why.

The blog posting states,

“I was startled when I read the front page article in the Business Times “Profit margins for DBSS developers ‘look high’” (Jun 30). It alleged that the DBSS developer’s profit margin for Centrale 8 was 76%, even after it had reduced its highest selling price by over $100,000.

I thought it could not be right and had it checked. Sure enough, the article was fraught with serious errors.”

What I find startling, in my view, is that with all the debate that has been going on in the media, everyone may be “barking up the wrong tree”. In my view, the obvious question was never asked.

Image from cozyhome.sg

HDB’s profits?

 

How much money did the HDB make from selling land to the highest bidder? How much more did Singaporeans have to pay over the years because of such HDB policies?

Where do such profits go? Even if we agree with the policy of the HDB selling land to the highest bidder, shouldn’t the profits derived be used to subsidise public housing, particularly for the lower-income?

Based on these figures alone, the profit margin would have been 26%, not 76%. But even the reduced figure was wrong, as the article had excluded key cost items such as financing, marketing and administrative costs. These are significant costs and when included, would have further lowered the profit margin for all the DBSS projects listed in the article.

I suspect that the biggest item in quantum missing from the “costs” puzzle, may be the profits made by the HDB from the land sale.

The puzzle then becomes even more puzzling, because according to the article “DBSS profit margin: Developers clarify report” (ST, Jul 2), “The profitability of their projects should thus be measured by their net profit margins, the firms added, which range from 15% to 18%”.

So, is it 76% according to the Business Times article, 26% according to the National Development Minister or 15% according to the DBSS developers?

Anyway, I don’t think we should be focusing on how much the developers made, because they are in the business of making profits, and have to take risks in undertaking such projects.

Image from ChannelNewsAsia.com

HDB: Be more transparent?

 

“I have been in MND for 5 weeks, and not sleeping well. I am working my guts out to try to calm the market, for the good of all Singaporeans. But I can’t do it alone. I need all to help.”

Perhaps the Minister may be able to sleep better, if there is more transparency from the HDB, such as the question above on how much the HDB makes from DBSS land sales and the number of HDB loans and HDB bank loans in arrears, etc.

“I hope our media can do their part too. There is some panic buying out there, by people worried that prices will continue to rise. Sensationalised articles will merely feed the frenzy. If only BT had verified the facts, the misleading article could have been avoided. Please help to circulate this blog to your friends.”

If the HDB is more transparent in the first place, there may be no need for the media or Singaporeans like me to speculate and alarm the market further.

So, the ball’s in the HDB court now – be more transparent, because your lack of transparency may be fueling the frenzy in the market.

More downgraders?

Whilst I applaud the Minister for disclosing so many never-before-disclosed HDB statistics, such as the breakdown of who were the buyers of resale flats, the most important statistic on how many are downgraders and upgraders is still not disclosed.

Given that 8% of those who bought resale flats were private property owners, 37% of the 34% second-timers bought 3-room and smaller flats, plus an unknown number of BTO downgraders, I believe there may be an emerging trend of more Singaporeans downgrading than upgrading, particularly if these statistics are further broken down into Singaporeans and permanent residents (PRs).

Having your cake and eat it too?

What the latest data may indicate is that despite all the cooling measures, the HDB Resale Price Index rose to a three-quarter high of 2.9% from the last quarter’s 1.6%, and the median Cash-Over-Valuation (COV) has also risen to an all-time high of $32,000 from the first quarter’s $22,000 from preliminary data from property firms (“Stiffer rules put fewer flats on market”, ST, Jul 2).

“HDB is setting BTO prices carefully to help guide the market.”

What exactly does this mean? Does it mean that the HDB is tweaking its Market Subsidy Pricing policy that pegs BTO flats to resale prices?

As long as the Government sets high reserve prices for land auctions, allow private developers to bid for land under DBSS and Executive Condo (EC), cooling measures may not work because its like trying to have your cake and eat it too!

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Ng Eng Hen: Dust clouds likely caused armoured vehicle collision during Exercise Wallaby

Dust clouds limiting visibility likely contributed to the collision between two Hunter vehicles during Exercise Wallaby, Defence Minister Ng Eng Hen explained in his parliamentary reply. 12 servicemen sustained mild injuries, but safety measures prevented more serious outcomes. A formal investigation is ongoing to ensure further safety improvements.

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SINGAPORE: Low visibility caused by dust clouds was identified as the likely cause of the collision between two Hunter armoured fighting vehicles (AFVs) during Exercise Wallaby last month, Defence Minister Ng Eng Hen said in a written parliamentary response on Tuesday (15 October).

The incident, which occurred in Queensland, Australia, on 24 September 2024, resulted in mild injuries to 12 servicemen.

Dr Ng’s statement was in response to a parliamentary question from Mr Dennis Tan, Workers’ Party Member of Parliament for Hougang SMC.

Mr Tan asked for details on the accident, specifically its cause and whether any lessons could be applied to enhance training and operational safety within the Singapore Armed Forces (SAF).

The collision took place during a night-time movement of Hunter AFVs at the Shoalwater Bay Training Area.

The vehicles were returning to base when one rear-ended another. Dr Ng explained that the dust clouds generated by the AFVs’ movement significantly impaired visibility, might likely contributing to the accident.

The 12 affected servicemen sustained mild injuries and were promptly taken to the nearest medical facility.

None of the injuries required hospitalisation, and all 12 servicemen were able to rejoin their units for training the next day.

According to the minister, adherence to safety protocols—such as wearing seat belts and protective gear—played a crucial role in limiting the injuries to mild ones.

Following the incident, a safety pause was immediately implemented, with all drivers being reminded to maintain proper safety distances, especially when visibility was compromised.

Troops were also reminded to adhere strictly to safety protocols, including the proper use of safety equipment, Dr Ng added.

The safety lessons from the incident were shared not only with the affected units but also with other participating groups in the exercise, as well as units back in Singapore, through dedicated safety briefings.

Mr Tan also asked about the broader implications of the incident. In his response, Dr Ng said that a formal investigation had been launched in accordance with SAF’s safety incident protocol.

The investigation aims to assess the circumstances more thoroughly and identify any further measures that could be taken to enhance safety.

Dr Ng shared that recommendations arising from the investigation will be implemented where necessary.

Exercise Wallaby is SAF’s largest unilateral overseas exercise, and the 2024 edition began on 8 September, running until 3 November.

The exercise involves approximately 6,200 personnel, including 500 operationally ready national servicemen.

The exercise has been conducted at Shoalwater Bay Training Area in Queensland since 1990, and it is a key part of SAF’s overseas training program.

The Hunter AFV, one of the vehicles involved in the collision, is a state-of-the-art platform jointly developed by the Defence Science and Technology Agency, the Singapore Army, and ST Engineering.

It replaced the SAF’s aging fleet of Ultra M113 AFVs in 2019, which had been in service since the 1970s. The Hunter is equipped with advanced features, including a 30mm cannon, a 76mm smoke grenade launcher, and an automatic target detection and

tracking system designed to enhance operational effectiveness. It is also capable of traveling at increased speeds and covering longer distances, making it a versatile asset for the SAF.

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Government to “carefully consider” Lee Hsien Yang’s demolition application for 38 Oxley Road

The Singapore Government will “carefully consider” Mr Lee Hsien Yang (LHY)’s application to demolish the house at 38 Oxley Road. LHY announced his intent on Tuesday morning following the recent death of his sister, Dr Lee Wei Ling, reaffirming his commitment to honour his parents’ wish for the house’s demolition.

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The Singapore Government has indicated that it will “carefully consider” Mr Lee Hsien Yang’s (LHY) application to demolish the family home at 38 Oxley Road.

LHY, the youngest son of Singapore’s founding Prime Minister, the late Lee Kuan Yew (LKY), announced his intention to apply for the demolition in a Facebook post on 15 October 2024, following the death of his sister, Dr Lee Wei Ling, on 9 October.

The announcement marks a significant development in the ongoing saga over the fate of the historically significant property, which has been at the heart of a family dispute since LKY’s passing in 2015.

In his will, executed in December 2013, LKY expressed his desire for the house to be demolished “immediately after” Dr Lee moved out of the property. Dr Lee, a prominent neurologist, had been the last remaining resident of the house.

LHY reaffirmed his commitment to carrying out his father’s wishes, stating, “After my sister’s passing, I am the only living executor of my father’s estate. It is my duty to carry out his wishes to the fullest extent of the law.”

He added that he would seek to build a small private dwelling on the site, which would be “held within the family in perpetuity”.

LHY also referenced his brother, Senior Minister Lee Hsien Loong’s (LHL) remarks in Parliament in 2015, when he was Prime Minister, stating that upon Dr Lee’s passing, the decision to demolish the house would rest with the “Government of the day.”

In response to media queries regarding LHY’s announcement, a spokesperson for the Ministry of National Development (MND) acknowledged the intended application and emphasised that the Government would “carefully consider issues related to the property in due course”.

The spokesperson also highlighted that any decision would need to balance LKY’s wishes, public interest, and the historical value of the house.

The house at 38 Oxley Road, where key decisions about Singapore’s path to independence were made, has been a focal point of public and political discussion.

The future of the house became contentious in 2017 when LHY and Dr Lee publicly accused their elder brother, LHL, of trying to preserve the house against their father’s wishes for political reasons.

LHL denied the accusations, issuing a Ministerial Statement in Parliament, where he also raised concerns over the preparation of their father’s final will. He clarified that he had recused himself from all decisions regarding the property and affirmed that any government action would be impartial.

In 2018, a “secret” ministerial committee, which was formed in 2016 to study the future of 38 Oxley Road, proposed three options: preserving the property and designating it as a national monument, partially demolishing the house while retaining the historically significant basement dining room, or allowing complete demolition for redevelopment. LHL accepted the committee’s conclusions but stated that no immediate decision was necessary, as Dr Lee was still living in the house.

In a statement conveyed by LHY on behalf of Dr Lee after her passing, she reiterated her strong support for her father’s wish to demolish the house. “My father, Lee Kuan Yew, and my mother, Kwa Geok Choo, had an unwavering and deeply felt wish for their house at 38 Oxley Road to be demolished upon the last parent’s death,” the statement read.

She added, “He had also appealed directly to the people of Singapore. Please honour my father by honouring his wish for his home to be demolished.”

Despite selling the house to LHY at market value in 2015, LHL’s stance regarding the house’s preservation became a public issue, especially after the family disclosed that the Government had raised concerns about reinstating the demolition clause in the 2013 will. The ministerial committee had reviewed the matter, but a final decision was deferred until now.

The fate of 38 Oxley Road remains to be seen, but the Government’s decision will likely have lasting implications for the legacy of the Lee family and the conservation of Singapore’s historical landmarks.

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