Tin Pei Ling joins debate on DBSS, criticises policy
Member of Parliament (MP) for Marine Parade GRC Tin Pei Ling has voiced her concerns over the issue of high prices of DBSS flats.
Her comments come amidst public outcry last week over the price of a five-room HDB flat at Centrale 8 Tampines which was first put on sale for $880,000. It was the priciest flat to be released for sale under the Design, Build and Sell Scheme (DBSS).
Following unhappiness over the exorbitant flat prices, the property's developer, Sim Lian Group, slashed prices by up to $102,000, prompting many to question why the units weren't priced lower in the first place.
Joining the debate over the issue, Tin said in her Facebook post on Friday that the issue "stunned" many Singaporeans, including her.
She added that many have also questioned why such flats — developed on HDB lands and eventually managed by the town councils — should be priced by private developers.
DBSS no longer relevant today?
While enabling private developers to independently price DBSS units may be in line with the concept of "free market" principles, it also means HDB is losing control over "precious" lands that could be better utilised for BTO flats or community facilities, she said.
Although such a scheme is meant to offer additional housing options to Singaporeans who might have different aspirations, the first-time MP pointed out that what might have been a "useful housing option" in 2005 may no longer be suitable in present times.
Tin also said that the hot property market might prompt buyers to rush in and purchase properties for fear that prices will continue to rise and they may never be able to afford their homes if they are to hold back and wait.
However, she pointed out that such a move would only drive prices up.
"It is human psychology," she said.
"Developers, seeing this trend, may choose to capitalise on this situation and set higher prices. They may also want to set the prices of new releases higher, so that their immediate-past customers will see rising, not falling property values."
Reserve land for affordable housing
Referring to some comments that Singaporeans can choose not to purchase DBSS properties, Tin said that consumers' choice was not the crux of the problem.
"But I think the issue is one of principle — given the land scarcity in Singapore, HDB land should be reserved for building affordable public housing, and not apartments that HDB has little influence over," she said.
Her statement could well refer to National Development Minister Khaw Boon Wan comments' that netizens can exercise their rights as consumers if they find property prices too high.
"If buyers find a price too high, they can walk away," he had said in his blog posting dated on 18 June this year.
In addition, Tin also called on the HDB to include the DBSS under its review of housing policies, suggesting that it should have either the sole right to price such housing units, or include a condition which will allow it to discuss property prices with private developers.
Read her full blog post here.
