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Business Times - 21 May 2011

Khaw Boon Wan determined to make housing and HDB popular again

By UMA SHANKARI

OUTGOING Health Minister Khaw Boon Wan feels 'even greater trepidation' at heading the Ministry of National Development (MND) than when he took on his previous portfolio.

'I came to MOH (Ministry of Health) during Sars with some trepidation, not quite sure what I was walking into,' Mr Khaw wrote yesterday in his last blog post as health minister. 'I will go to MND with even greater trepidation. First, it is red-hot with widespread unhappiness. Second, unlike MOH, which is familiar territory, housing is a new frontier for me.'

But as when he took over MOH in 2003, he will enter MND 'in all sincerity' to make a useful contribution and with determination to make it better.

'I am driven by only one thought: housing is one of the greatest achievements of Singapore, and our pride. It is very sad to see it being hammered left, right and centre in the lead up to and during GE (general election),' Mr Khaw said.

'I am determined to make housing and HDB Singaporeans' popular icon again.'

Mr Khaw will be sworn in as National Development Minister today, replacing Mah Bow Tan. Analysts are expecting policy shifts from MND that will impact the HDB and mass market private housing sectors.

Mr Khaw also said in the blog post - titled 'Goodbye, My Friends' - that he hopes that Singaporeans will bear with him, and promised to work 'triply hard' to shorten the learning curve, 'listen intently' to all suggestions and criticism, and 'work humbly' with the housing experts in MND and beyond.

He also traced the major events that marked his eventful eight years with MOH.

'I joined MOH in 2003 when Sars erupted. MOH needed extra hands and then-PM Goh (Chok Tong) thought that my hospital experience would be helpful in the war against Sars,' Mr Khaw recalled.

'One thing led to the other: NKF (National Kidney Foundation), Ren Ci, H1N1, bed crunch, KTPH (Khoo Teck Puat Hospital), MediShield Reform, ElderShield, Medisave liberalisation, means testing, second medical school etc.' He added that there were many more things he wanted to do in MOH, such as transform the long-term care sector, ensure nursing home affordability, reform ElderShield, set up a third medical school, and expand polyclinics.

But he would entrust this agenda to the next health minister, Gan Kim Yong. 'I am leaving MOH with optimism that our healthcare system will continue to make progress. I am confident because of the quality of leadership at MOH and its many world-class institutions. We are not perfect, I know. But it is not bad. It certainly offers very good value for money,' Mr Khaw said.

I dun knw how is Khaw going to solve the whole load of crap that is our public housing now.

To raise price or to decrease it? He is gonna have a headache from either party who will suffer as a result.

Thanks to his predecessor's "helicopter vision" and foresight of cos.

Some possible measures..
1) increase the flat subsidy and the mandatory occupational period. (8 or 10 yrs?)
2) increase the income ceiling to 10k but offer HDB concessionary loan only to those whose income is below 8k
3) stringent selling and renting of flats by PR. Impose capital gain tax for HDB if PR decides to leave the country.
4) Impose capital gain tax if flat is sold in the 5th year of occupation.

(21-05-2011, 01:55 PM)yeokiwi Wrote: [ -> ]Some possible measures..
1) increase the flat subsidy and the mandatory occupational period. (8 or 10 yrs?)
2) increase the income ceiling to 10k but offer HDB concessionary loan only to those whose income is below 8k
3) stringent selling and renting of flats by PR. Impose capital gain tax for HDB if PR decides to leave the country.
4) Impose capital gain tax if flat is sold in the 5th year of occupation.

some said remove COV...

Hmms, possible measures will be introduced soon, after this hospital expert now MND minister KBW took over this important ministry, hehe...just recovered from heart by-pass...i not sure his competency in this area...hope he dun over do it causing a crash..i think he will make housing pricings more tranparent and focus on 'affordable' for the man in the street.

well, before measure throw out...if there opportunity think can still invest in ppty rather than stock, for me only, putting money where my mouth is....

If he is smart he should let the pricings be 'Natural'...floating along global trend....there is no way for him to bring back price like a 3 rm HDB flat to 10 yrs ago price of $100k, same analogy for a plate of wan tan mee from $3 drop to $1.50, it not possible at all...so how?

moving forward...
- construction material not gg to fall but instead on the rise.
- land cost not falling too
- labour cost gg up soon...cos worker salary likely to increase after this GE
- hope he not follow the Japanese ppty burst took them 20 yrs till to-date not recover yet and the american sub-prime collapsed wipe out at least 5 trillions US$ , causing severe unemployment.....

Maybe he will introduce the "mean testing" equivalent into housing...

I just went to preview the Foresque today, the newly launch 99 yrs LH condo in Bukit Panjang. A 1184 sqft 3 bed rooms unit cost $1.36 millon!!! Psf more than $1K liao. Low floor unit somemore. Nearest MRT is some 20 minutes fast walk away, and need to go up slope, pathway not shelter. No shop and mall nearby. About 28 meters away is another project, The Tree House, which was lauched few months ago, selling at an avg of $850 psf. Price difference of more than 20% within the same area and within such a short time is crazy. This property market really needs some "liang tei" to cool down.

I remember this scenario 10+ years ago, where prices are risen crazily high (850k -> 1.2 mil) and then 1-2 year later, cooling back to original launch price. I guess many developers are betting on the crazy folks who can afford the developers ridiculous demand for margins and they are fine if the developments are not fully sold out. This is not the first time these days i heard of this psf range outside of CCR. Since they expect prices to crash anyway, might as well make the best of it.

Like what koh san advised, it is a good time to start browsing for potential targets if you have some left in your pocket.

(21-05-2011, 09:26 PM)koh_52 Wrote: [ -> ]some said remove COV...

This can be rather difficult to implement since a unit may be favored by multiple buyers. So, who should the seller sell to?
The current practice is paying COV above valuation.

If there is an area in which I whole-hearted embrace the concept of 'Singaporean First', it would most definitely have to be HDB flats.

HDB flats should only be owned by Singaporeans and not PR. I'm sure the numbers will not bear this out but stopping the PR from entering the HDB re-sale market to compete with young couples who exceed the income ceilings will surely help to dampen the demand and ultimately the price of the resale flats.

Of cos banning the PR from resale HDB market will create another set of problems. And if they are forced into the private properties, that may have an undesirable bubbly effect for that segment. So its not going to be a prefect solution. But at least the focus should be on making PUBLIC HOUSING affordable for the majority of Singaporeans.

i wonder how KBW gg to balance the housing prices?

drop price not fair to existing buyers at high prices...best maybe let price go flat and subsequently increase supply..of cos Tharma side has to throttle in flux of foreigners.

Oh yes, agreed with Yeo san...not easy to remove COV, if no demand this component will automatically disappeared.

if KBW timing is good after he took over office:
1. Global interest rate hike
2. China ppty bubble burst.

then he just lay-back the housing prices will correct by itself....when every1 dash out.

Hdb should just drop this income ceiling shitz. A couple now easily earn more than 10k after 5yrs.