Tuesday, October 02, 2012

PM Lee promises more affordable homes

Prime Minister Lee Hsien Loong has reassured Singaporeans that the government will build more flats at affordable prices so that it remains within the reach of young first-time buyers, noted The Straits Times.

“It's not my purpose to build flats and leave them on the shelf. It's my purpose to build flats and sell them to Singaporeans at a price which they can afford, which is what we're going to do,” said Mr Lee.

Recent reports have highlighted housing costs as one of the major concerns especially among first-time buyers as prices of many new projects have risen marginally by one or two percent.

PM Lee felt that it is better to give young Singaporeans a housing asset as “an endowment” to help them have a stake in the country and give them an equal starting point.

“You spend a reasonable proportion (on housing) and you can pursue your career, you can bring up your family and you can have a satisfying life. I think that's a better solution,” he said.

In addition, the government will build sufficient and affordable housing, with 25,000 flats this year and another 20,000 planned for next year.

Meanwhile, insurance agent Leo Tan asked if PM Lee meant that flat prices would be even lower than the current 20 percent discount.

Mohamed Ismail, Chief Executive of PropNex Realty, said that cutting prices of new flats would “distort the market and affect more than one million HDB homeowners”.

Instead, he suggested that “giving subsidies to first-timers and low-income families” would be better.

View the original article here

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