Although MP and former PM Goh Chok Tong has been credited with our HDB “asset enhancement” programme, he has also single-handedly held an entire nation hostage to the property market. link
With the PAP throwing tax dollars to continuously upgrade HDB flats to buy votes, Lau Goh and the MSM gave the impression that HDB “asset” prices will increase as if there’s no tomorrow. A majority of HDB flat buyers have bought into PAP propaganda for 2 decades and this has necessitated MND Minister Lawrence to recently state in no uncertain terms that prices of HDB flats will be $KOSONG/$ZERO at the end of a 99-year lease (CNA). Whether HDB flat buyers wake up to their folly remains to be seen.
Wong’s confirmation: “When the leases for HDB flats run out, they have to be returned to the state eventually and that as flats near the end of their lease periods, their prices come down correspondingly.”
Wong could have been more direct and said: “When the leases for HDB flats run out, HDB flats are worth $ZERO.”
Because the PAP controls both demand and supply of housing in our little red dot, it is in a unique position to dictate housing prices. And Lau Goh was so successful in his “asset enhancement” programme that within 6 years as PM, HDB resale prices shot up 400%. So clever hor, this Lau Goh.
Assuming a married couple buys a 50- or 60-year old resale flat to be close to their parents, won’t they be facing a serious shortfall come retirement?
Wong could have been more upfront with flat buyers and stated clearly this: HDB flat buyers never owned their flats.
There is no signing of any sales and purchase contract; HDB flat buyers only agree to lease the flat from the government.
HDB only leases flats to buyers.
Since HDB flats are not our assets, how are we able to benefit from “asset enhancement”?
In reality, it is the PAP which has benefited from exorbitant public housing prices, aka “asset enhancement”. Besides boosting our GDP, high real estate prices translate to increased land sales revenue which is channeled into GIC for investment (speculation).
Doesn’t “asset enhancement” also consequently lead to retirement shortfall for a majority of ordinary citizens living in public housing estates? How many ordinary Singaporeans, especially those who had retired more than a decade ago, are leading a dignified existence?
Isn’t Lau Goh’s/PAP’s “asset enhancement” programme more than hogwash, a scam of sorts?