Remarks on DPM Won’s BTO flat price have sparked backlash from netizens who say it is ‘linked’ to income

SINGAPORE — Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong has once again addressed concerns about housing affordability by reassured Singaporeans that public housing will continue to be accessible and affordable. bottom.

He explained, “In Singapore, the Prime Minister must be a real estate agent, so I am learning and brushing up on my skills, so I would like to take this opportunity to practice.”

In response to concerns over the affordability of HDB flats, Wong said, “BTO flat prices are actually moving in step with income.”

between him speech At the May Day Rally at Suntec Singapore Convention and Exhibition Center on May 1, Wong also mentioned various housing subsidies available to first-time homebuyers, making apartments even more affordable. .

He found that while the price of a four-room built-to-order (BTO) apartment in immature real estate has risen almost tenfold since 1980, median household income has risen at a similar rate. explained. In addition, first-time buyers will receive a housing subsidy of up to $80,000, making apartments even more affordable.

Wong emphasized that today’s typical household continues to spend less than 25% of its income on mortgage payments, similar to 1980 levels.

He reassured Singaporeans that the government remains committed to ensuring affordable and accessible public housing, adding that it is an important part of Singapore’s social pact.

“We have done this in the past. We have built the best public housing in the world. We will go anywhere in the world. .”

“Today, we continue to provide affordable and quality social housing to Singaporeans. secure affordable public housing.”

“This is what we stand for. Government will always strive for a fairer and more equal society and the well-being of all workers. That belief is in our DNA. and NTUC are both in the DNA,” Wong said.

Netizens called DPM Wong’s remarks ‘irresponsible’

Check the comment of CNAs, mothershipand todayLooking at the Facebook post, it’s clear that most, if not all, netizens don’t support Mr Wong’s remarks in his May Day speech.

Wong’s speech has been heavily criticized by netizens for portraying the 4G team he leads living in an ivory tower, with Wong’s remarks being “irresponsible” and criticizing housing affordability. criticized for not accurately reflecting reality.Singapore.

A netizen commenting on CNA said it was “irresponsible” to say that prices had risen in tandem with incomes, given that Singapore is currently experiencing its highest inflation in decades.

“I think we still need someone like LKY to tell us the hard truth instead of trying to cover up the issue.”

Comparing apples to apples?

It was also criticized that comparing the affordability of HDB apartments in 1980 to today was not entirely fair due to changes in loan tenure and household income.

Another commenter said that judging affordability by looking only at median income and BTO price is oversimplifying the issue.

There are other factors to consider, such as the length of the loan repayment period, the amount of cash or CPF left after paying off the loan, and the need to give up other forms of spending.

“Otherwise, we would only select data that favored the government’s position, rather than objectively assessing the reality of BTO prices and median household income,” wrote a netizen.

After considering various expenses such as housing, food, medical expenses, transportation, education, utilities and other necessary expenses, netizens can take a comprehensive approach and consider net disposable income. I pointed out that it might help.

This will give you a more accurate assessment of the quality and affordability of living in Singapore.

“Obviously impossible”

Many netizens have highlighted that housing costs have skyrocketed to levels that are unaffordable for many.

A comparison was made to the 1980s, when single-income households were able to pay their mortgages.

Today, even with dual income, many families still struggle to cover both housing and daily living expenses.

While some homeowners are grateful that they were able to secure HDB apartments years ago, rising housing costs combined with slowing wage growth are facing job cuts and job losses. Some have expressed concern that it may cause difficulties for those who do.

Additionally, one commenter said he considers HDB flats “affordable” only if the family can fully pay off the mortgage within 15 years using less than 25% of their monthly income. This differs from HDB’s typical 25-year loan repayment period.

‘Tandem‘ to whose income?

Regarding Mr. Wong’s claim that the BTO list price moves in tandem with income, some netizens asked him to clarify whose income he was referring to.

Another comment raised questions about the affordability of BTO flats for people working in jobs such as hawkers, taxi drivers, waitresses, nurses, clerks and technicians.

A netizen shared that his annual income ranges from $200,000 to $500,000, and noticed that the flat price of BTO increased significantly and the size of the flat decreased significantly.

“Future PM Disconnected”

The comments of Lawrence Wong, who will be appointed DPM in 2022 and will succeed Prime Minister Lee Hsien Loong, cast doubt on his competence among some netizens.

They suggest that the “future prime minister” seems disconnected from the grassroots level or is trying to downplay the housing issue for the sake of elections.

Opposition Calls for HDB Affordability Review, PAP Minister Defends Current Housing Policy

House prices have risen significantly in recent years and the government had to implement some measures. Cooling measures In December 2021 and September 2022, we will ease demand in the property market.

A while ago 5 room resale flat on the 41st floor of [email protected] sold for S$1.4 million, breaking previous records. 1,388,888.88 Singapore dollars Set in March last year, it shocked ordinary Singaporeans.

Singapore government present Increase implementation Additional Purchaser Stamp Duty (ABSD) From April 27th, the tariff will be applied as a measure to “promote the sustainable real estate market” and “prioritize owner-occupied housing”.

ABSD increases from 30% to 60% for foreigners buying residential property in Singapore.

nevertheless opposition parliamentarian Desmond Lee, Minister of National Development, has announced that the Singapore Progressive Party will reset current housing prices, after previously expressing concern about the high price of HDB apartments, making them unaffordable for many ordinary Singaporeans. (PSP)’s proposal was rejected.Nearly 70% of his build-to-order apartment Affordable With a median household income of S$8,400, resale prices apply.