Saturday, October 17, 2009

Are leftover flats really ‘undesirable’?

THIS is a case of ‘picky’ buyers versus ‘undesirable’ flats. Two couples publicly declared they could not find flats despite taking part in many HDB sales exercises.

The HDB refuted this, listing the number of times they had been invited to select flats, but had not done so.

The couples’ response? That the flats were unappealing.

One of the home-seekers, Mr Jayce Ng, 30, was quoted as saying: ‘You can’t blame me for having high expectations and not wanting to live on the second floor when I’ll be living there for the next 10 years – and this is a lifelong investment.’

HDB’s figures show home-seekers like Mr Ng are quite common. In its sale exercises from the first half of this year, an average of 45 per cent of first-time buyers did not pick any of the flats they were offered in non-mature estates.

Are the flats in question truly undesirable?

Associate Professor Lum Sau Kim of the National University of Singapore’s real estate department feels that it could be more a question of whether the so-called undesirable flats are priced at a level that people can accept. She says: ‘There has to be a price that will clear the market, and that price may be quite different from the suggested asking price.’

Unlike in other countries, where public housing is limited to the poorest people, HDB flats are the most common form of housing here. The flat has become a commodity upon which people are bound to impose their wants and preferences.

She says: ‘There’s a sense of entitlement, as there’s no other entity providing housing across such a broad population spectrum. Their expectations have been shaped by the Government’s delivery of housing.’

In other words, people will not stop being selective about their homes. Perhaps the issue then is whether the less coveted flats should be priced in a way that will attract more willing takers.

Source: Straits Times, 17 Oct 2009

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