Connect with us

Current Affairs

Old HDB flat prices fall further since Wong said these flats still have “value” in them

Published

4 years ago

on

Three years ago in March 2017, National Development Minister Lawrence Wong dropped a bombshell by warning Singaporeans not to assume that all old HDB flats will automatically be eligible for the Selective En bloc Redevelopment Scheme (Sers).

He said only about 4 per cent of HDB flats have been identified for Sers since it was launched in 1995. The En Bloc programme is offered only to HDB blocks located in sites with high redevelopment potential, he added.

He further warned that for the rest of the HDB flats, their leases will eventually run out and the flats returned to back to the government. “As the leases run down, especially towards the tail-end, the flat prices will come down correspondingly,” he said. In other words, when the lease runs out, the value of a HDB flat will go to zero.

This was completely unexpected as for many years, the PAP government had promised Singaporeans that by voting for PAP, the value of their HDB flat can continue to increase and be protected. Take for example, one of Wong’s predecessor Mah Bow Tan, then the National Development Minister, told everyone just before GE 2011, “We’re proud of the asset enhancement policy. (It) has given almost all Singaporeans a home of their own… that grows in value over time.”

Falling resale prices of old HDB flats

When the announcement came out from Wong, many HDB owners were naturally unhappy. Resale prices began to fall especially for the older HDB flats. Many were forced to sell at a much lower price.

For example in 2018, it was reported that a Mdm Chai was one of those affected (‘Owner sells 3-room HDB for 15% less after Wong’s comment about zero-value of expired flats‘). She received several offers when she first listed her 3-room HDB flat at Bukit Merah in January 2017, after her mum passed away. She was asking for $340,000, comparable to the market price of 3-room flats in that area at the time. Her flat had only 54 years left on its lease.

After Wong let “the cat out of the bag” in March 2017, offers started to dry up for Mdm Chai. Buyers told her that they were having second thoughts about buying her old flat with only 54 years of lease left. She then lowered the asking price to $320,000 but there were still no takers. Finally, she managed to get rid of her old flat in February 2018 about a year later, at a much reduced price of $288,000 – some $52,000 less than her initial asking price of $340,000. The value of Mdm Chai’s flat dropped 15% in slightly more than a year, thanks to Wong’s announcement.

Wong tries to talk up the market

In May 2018, Wong tried to talk up the market in Parliament by saying the older HDB flats still have value in them (‘There is still value in older HDB flats: Lawrence Wong‘).

He said that owners of older HDB flats have become “overly anxious” about how much their flats can fetch in the resale market. He assured that the older flats still have value that can be unlocked for retirement.

At the time, he presented some data in Parliament saying that an older 4-room flat with a lease of less than 60 years would sell for around $300,000, and a 5-room, for around $400,000 in non-mature estates.

The owners can consider downgrading after selling their flats. He said the sales proceeds would be more than enough to buy a smaller flat, say, a two-room flexi flat with a 40-year lease that costs around $100,000, while a three-room resale flat is around $250,000 depending on location. There is also the Lease Buyback Scheme and HDB owners can rent out one of their bedrooms too.

However, even if one wants to sell his old HDB flat, there are restrictions for buyers on the use of CPF to buy flats with remaining lease less than 60 years.

Resale prices of old HDB flats drop further since Wong’s “market talk”

Slightly more than 2 years have passed since Wong trying to talk up the market for the older HDB flats in Parliament in May 2018.

A check on 4 and 5-room HDB flats with lease of less than 60 years in non-mature estates has shown that their resale prices have dropped further since that time. Following are current data taken from HDB resale website:

Choa Chu Kang (4-room):

Average transacted price over last 12 months: $291,000 (3% below $300K).

Choa Chu Kang (5-room):

Average transacted price over last 12 months: $379,000 (5.3% below $400K).

Woodland (4-room):

Average transacted price over last 12 months: $250,000 (16.7% below $300K).

Woodland (5-room):

Average transacted price over last 12 months: $318,000 (20.5% below $400K).

Yishun (4-room):

Average transacted price over last 12 months: $277,000 (7.7% below $300K).

Former PAP National Development Minister Mah Bow Tan must be glad that he doesn’t need to run for GE 2020 anymore, since he would be accused of spreading “falsehood” with regard to his remarks of HDB flat “grows in value over time”.

 

Related Topics:
Continue Reading
9 Comments
Subscribe
Notify of
9 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Current Affairs

TJC issued 3rd POFMA order under Minister K Shanmugam for alleged falsehoods

The Transformative Justice Collective (TJC) was issued its third POFMA correction order on 5 October 2024 under the direction of Minister K Shanmugam for alleged falsehoods about death penalty processes. TJC has rejected the government’s claims, describing POFMA as a tool to suppress dissent.

Published

23 hours ago

on

6 October 2024

By

The Transformative Justice Collective (TJC), an advocacy group opposed to the death penalty, was issued its third Protection from Online Falsehoods and Manipulation Act (POFMA) correction direction on 5 October 2024.

The correction was ordered by Minister for Home Affairs and Law, K Shanmugam, following TJC’s publication of what the Ministry of Home Affairs (MHA) alleges to be false information regarding Singapore’s death row procedures and the prosecution of drug trafficking cases.

These statements were made on TJC’s website and across its social media platforms, including Facebook, Instagram, TikTok, and X (formerly Twitter).

In addition to TJC, civil activist Kokila Annamalai was also issued a correction direction by the minister over posts she made on Facebook and X between 4 and 5 October 2024.

According to MHA, these posts echoed similar views on the death penalty and the legal procedures for drug-related offences, and contained statements that the ministry claims are false concerning the treatment of death row prisoners and the state’s legal responsibilities in drug trafficking cases.

MHA stated that the posts suggested the government schedules and stays executions arbitrarily, without due regard to legal processes, and that the state does not bear the burden of proving drug trafficking charges.

However, these alleged falsehoods are contested by MHA, which maintains that the government strictly follows legal procedures, scheduling executions only after all legal avenues have been exhausted, and that the state always carries the burden of proof in such cases.

In its official release, MHA emphasised, “The prosecution always bears the legal burden of proving its case beyond a reasonable doubt, and this applies to all criminal offences, including drug trafficking.”

It also pointed to an article on the government fact-checking site Factually to provide further clarification on the issues raised.

As a result of these allegations, both TJC and Annamalai are now required to post correction notices. TJC must display these corrections on its website and social media platforms, while Annamalai is required to carry similar notices on her Facebook and X posts.

TikTok has also been issued a targeted correction direction, requiring the platform to communicate the correction to all Singapore-based users who viewed the related TJC post.

In a statement following the issuance of the correction direction, TJC strongly rejected the government’s claims. The group criticised the POFMA law, calling it a “political weapon used to crush dissent,” and argued that the order was more about the exercise of state power than the pursuit of truth. “We have put up the Correction Directions not because we accept any of what the government asserts, but because of the grossly unjust terms of the POFMA law,” TJC stated.

TJC further argued that the government’s control over Singapore’s media landscape enables it to push pro-death penalty views without opposition. The group also stated that it would not engage in prolonged legal battles over the POFMA correction orders, opting to focus on its abolitionist work instead.

This marks the third time TJC has been subject to a POFMA correction direction in recent months.

The group was previously issued two orders in August 2024 for making similar statements concerning death row prisoners.

In its latest statement, MHA noted that despite being corrected previously, TJC had repeated what the ministry views as falsehoods.

MHA also criticised TJC for presenting the perspective of a convicted drug trafficker without acknowledging the harm caused to victims of drug abuse.

Annamalai, a prominent civil rights activist, is also known for her involvement in various social justice campaigns. She was charged in June 2024 for her participation in a pro-Palestinian procession near the Istana. Her posts, now subject to correction, contained information similar to those presented by TJC regarding death penalty procedures and drug-related cases.

POFMA, which was introduced in 2019, allows the government to issue correction directions when it deems falsehoods are being spread online.

Critics of the law argue that it can be used to suppress dissent, while the government asserts that it is a necessary tool for combating misinformation. The law has been frequently invoked against opposition politicians and activists.

As of October 2024, Minister K Shanmugam has issued 17 POFMA directions, more than any other minister. Shanmugam, who was instrumental in introducing POFMA, is followed by National Development Minister Desmond Lee, who has issued 10 POFMA directions.

Major media outlets, including The Straits Times, Channel News Asia, and Mothership, have covered the POFMA directions. However, as of the time of writing, none have included TJC’s response rejecting the government’s allegations.

Continue Reading

Current Affairs

Hotel Properties Limited suspends trading ahead of Ong Beng Seng’s court hearing

Hotel Properties Limited (HPL), co-founded by Mr Ong Beng Seng, has halted trading ahead of his court appearance today (4 October). The announcement was made by HPL’s company secretary at about 7.45am, citing a pending release of an announcement. Mr Ong faces one charge of abetting a public servant in obtaining gifts and another charge of obstruction of justice. He is due in court at 2.30pm.

Published

3 days ago

on

4 October 2024

By

SINGAPORE: Hotel Properties Limited (HPL), the property and hotel developer co-founded by Mr Ong Beng Seng, has requested a trading halt ahead of the Singapore tycoon’s scheduled court appearance today (4 October) afternoon.

This announcement was made by HPL’s company secretary at approximately 7.45am, stating that the halt was due to a pending release of an announcement.

Mr Ong, who serves as HPL’s managing director and controlling shareholder, faces one charge under Section 165, accused of abetting a public servant in obtaining gifts, as well as one charge of obstruction of justice.

He is set to appear in court at 2.30pm on 4 October.

Ong’s charges stem from his involvement in a high-profile corruption case linked to former Singaporean transport minister S Iswaran.

The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.

These charges alleged that Iswaran had corruptly received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha.

These gifts were allegedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert.

Although Iswaran no longer faces the original corruption charges, the prosecution amended them to lesser charges under Section 165.

Iswaran pleaded guilty on 24 September, 2024, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.

Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong.

The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.

Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea.

The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.

According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022.

CPIB investigators uncovered the flight manifest and seized the document.

Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight.

Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.

Mr Ong is recognised as the figure who brought Formula One to Singapore in 2008, marking the first night race in the sport’s history.

He holds the rights to the Singapore Grand Prix. Iswaran was the chairman of the F1 steering committee and acted as the chief negotiator with Singapore GP on business matters concerning the race.

 

Continue Reading

Trending