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Keep flats simple and affordable: Ex-HDB chief

Dr Liu Thai Ker, sharing Singapore’s formula for success in providing large scale housing for Singaporeans as well as the softer aspects of housing issues. Moderated by Dr Aline Wong..Photo: Ernest Chua. 21 March 2013.
Key figure in S’pore’s public housing programme calls for return to ‘core mission’
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BY
NG JING YNG
-3 HOURS 1 MIN AGO
SINGAPORE — As the debate rages on over the role and nature of public housing, following National Development Minister Khaw Boon Wan’s call earlier this month to relook the long-term direction, the man who played a pivotal role in the Republic’s successful public housing programme in the early years yesterday made the call to return to the basics.

Forget the bells and the whistles, and build more flats than needed — the end goal is affordability, said Dr Liu Thai Ker, whose 20-year career in the Housing and Development Board (HDB) began in 1969 when he was the head of the Design and Research Section.

He rose through the ranks to become its Chief Architect and ultimately, the Chief Executive Officer, before he left in 1989 to become the CEO and Chief Planner of the Urban Redevelopment Authority.

And his call was backed by former Senior Minister of State and HDB Chairman Aline Wong, who reiterated that the purpose of public housing is to “provide a shelter over everybody’s heads”.

“The asset part comes along because ... property appreciates over a long time. But that is not our primary objective. People make money, accumulate savings ... but we cannot promise that they will not lose (value in their property), depending on the property cycle,” she said.

Dr Liu, 75, and Dr Wong, 72, were speaking to reporters after the former gave a lecture on the Singapore Public Housing Story, organised by the Centre for Liveable Cities.

Dr Liu said: “Maybe we should go back to the basics in the sense that we should not, say, emulate condominiums — that require more expensive materials, extra this, extra that ... go back to basics, keep housing prices affordable, let residents embellish the houses, embellish the interiors.”

He reiterated that the “core mission” of the HDB is to “provide affordable housing”. “And in the process of providing that, we try to use whatever budget available to create the biggest possible floor area for the people and with minimum frills, minimum decorations and so on. By minimum decorations, it doesn’t mean that the buildings are not beautiful ... if the buildings are well-proportioned, they are beautiful.”

Dr Liu added that to keep public housing prices in check, “it is not a bad thing to be marginally over supply”. He suggested building above demand by “a few hundred”.

On how policymakers can draw on lessons from the past to ensure housing prices remain affordable, Dr Liu said: “When I was CEO, we looked at the per capita GDP (gross domestic product) growth, the sector of people eligible for public housing, their income ... and then matching that to our selling price and to our flat sizes. It was really a very detailed study.”

Dr Liu noted that in those days, flats typically cost about three years of an owner’s salary.

During the Ministry of National Development’s Committee of Supply debate earlier this month, Mr Khaw had said the Government aimed to bring down Build-To-Order (BTO) flat prices in non-mature estates to around four years of salary “as it was before the current property cycle started”.

Dr Liu said: “Four years (is) totally respectable because a lot of cities in other parts of the world, the payment is between five and seven years. If we can get four years, we should be very happy.”

Mr Khaw had also stressed that the HDB’s primary mission to offer affordable homes to the majority of Singaporeans will not change, but a “relook” is necessary in light of significant demographic and economic changes. He had earlier explained that the prices of new HDB flats are set based on the typical household income of families, the market price of similar resale flats in the vicinity, and the flat size and location.

Since Mr Khaw became Minister for National Development, he has de-linked resale and BTO prices by varying the discounts for new flats.

Lauding the move, Dr Liu said: “We should look at the BTO by itself and work out affordable pricing. If we do this part of the work well, with timely supply, I think the resale market will adjust itself.”

Dr Wong also welcomed recent moves by the Government: Requiring private property owners who buy HDB resale flats to sell the private property within six months; building more rental flats, and relaxing the rules for singles and divorcees to buy new flats.

Dr Wong said: “In 1989, when they liberalise the rule to allow private property owners to buy HDB flats and vice versa, I thought we were deviating from our principle of providing public housing to those who could only afford public housing. So now, we are back to a more basic principle, I am very happy about that.”

She added: “Going back to the basics of providing shelter ... we are moving on the right path now by going back to more rental (flats), providing housing for the divorcees and for the singles... We are not deviating from emphasising that family is the basic block of society. (But) these people (divorcees and singles) are already there with a need.”

In his lecture, Dr Liu recounted the beginnings of the HDB when it had to construct homes for a large number of people to own and build self-sufficient towns. The plan was to do so via high-rise buildings, which went against global trends in the ’60s, he said.

Dr Liu said what is less well-known is the amount of detail that went into the city planning, which included consultations with sociologists. For instance, in order to also foster community spirit in HDB estates, the planners looked at how to encourage neighbourliness in the way the units were organised in a block of flats, he said.
Dr Liu / Dr Wong

1. Did you foresee the surplus stocks of >20,000 HDB flats post Asian financial crisis?
2. After "taking care" of these surplus flats , HDB came up with the "brilliant" concept of BTO. What was your response then?
3. Forward looking, what is your recommendation(s) to prevent HDB from veering from a feasting to famine scenario and vice versa?
See how fast they change the tune......from raiding of national reserves to affordability......
Elites!!
The raiding of reserve argument was made two years ago before 2011 election. Is that too fast to change? Would you prefer they stick to their policy?
haha...don't remember saying that i prefer the old policy...haha!
Aiya! Toots! No argument O. K. Think for yourself. Whatever it is, a democratic country with a GOV that has more than 2/3 majority is not a democratic country anymore. Most of us, Singaporeans have been living for more than 50 years in such a place not a country.
Shall i mention the last example of the way of voting in parliament about the "White paper"?
Shall i mention how we have been screwed up, UTD?
Shall i mention the people has asked for a "REFERENDUM" on the WHITE PAPER & PAPIes just keeping very quiet about it?
So pls vote to make sure no party has 2/3 majority in Parliament, ever again if you really want your voice to be heard in Parliament.
Don't you believe only PAPIES can govern in Singapore and everyone else is servient and worse stupid.
Do you believe???
Don't worry uncle - not arguing here.

I just felt the change is too slow...not fast. Haha
Ha! Ha!
Of course, they have to change slowly. If too fast, it will be too obvious Papies has been screwing up Singaporeans, isn't it? But i can tell you if the last "HONG LIM PARK's turn out on the "WHITE PAPER was just 100 or even 200 people, then there will be no change at all. In fact i think Papies will speed up the importing of cheap FT's on the quiet just as they did in the past.
See come May the 1st, how many people will turn out at HONG LIM PARK's again???
i think it's very important to turn up as we, ordinary citizens have lost our voice in Parliament.
This is one way we can show we still have our voice in Singapore though not in parliament.

Mark my words:-
i think Papies will speed up all the goodies for Singaporeans to co-insides with 2015 and 2016.
The so called "PORK BARREL POLITICS" (normal practice by politicians all over the world) will be "dumped on and overwhelmed" Singaporeans on the next pre-election days. Just how many "on the fence" electorates will be moved towards Papies? i don't know?
We can just pray not many.
Why so many miw angels lately ?
Is that what we are called. To counter the oppy devils i guess then.
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