What is the price difference between an older ethnic quota HDB flat and a younger non-ethnic quota flat?
I refer to the HDB’s reply “Most flat sellers are able to secure buyers from eligible ethnic groups” (Straits Times Forum, Sep 20) to the letters by Ms J. M. Daniel, Mr Raj K. M. and Mr William Gomez (Flexibility needed for minority-race flat owners, Sept 7; Medical bills loom, but unable to sell flat, Sept 12; and HDB needs to look at plight of minority-race flat owners, Sept 14; respectively).
It states that “Given the large volume of buyers on the market every year, most home owners are able to secure buyers from eligible ethnic groups.
The saleability of a flat in the open market is dependent on many factors, not just the EIP.
While home owners may have their own expectations of how much their flat could sell for, flat attributes such as location, storey height, the physical condition of the flat and market sentiments would also be considered by prospective home buyers.
Given the large volume of buyers on the market every year, most home owners are able to secure buyers from eligible ethnic groups.”
Since I first started writing about the HDB ethnic quota problem (the first one was to Today on Nov 17, 2003) – the HDB’s replies in the newspaper forums and in Parliament have been similar to the one now.
The problem may have become even more acute now, especially for older HDB flats which may be rapidly declining in value, particularly for those hit by the ethnic quota.
It is like a double whammy – lesser buyers due to both the ethnic quota and the age of the flat.
In this connection, how many ethnic quota appeals to HDB are successful in a year?
How many HDB ethnic quota appeal letters are written by all the MPs in all the constituencies in a year, and how many are successful?
Are there vacant HDB rental flats due to the ethnic quota and how many of such vacant flats are there?
As to “The saleability of a flat in the open market is dependent on many factors, not just the EIP.
While home owners may have their own expectations of how much their flat could sell for, flat attributes such as location, storey height, the physical condition of the flat and market sentiments would also be considered by prospective home buyers.
Home owners looking to sell their flat would have to set realistic asking prices.
For those who are unable to sell their flats, HDB may grant them an extension of time.
Additionally, HDB has and will continue to exercise flexibility for households where there are exceptional circumstances.
Besides selling their flats, elderly home owners who wish to unlock the value of their existing flats can also consider taking up the Lease Buyback Scheme or renting out spare bedrooms.
However, we understand that each individual has different considerations and needs.
HDB branches offer one-on-one financial consultation services to help home owners better understand the various monetisation options so that they can make decisions that best meet their needs and preferences” – since the HDB keeps saying that most don’t have a problem with selling their ethnic quota flats – what is the percentage of neighbourhoods that have at least one ethnic group which reached or exceeded the neighbourhood limit?
Is it as high as the 28 per cent at one time, or the 24 per cent in 2003?
By the way, since the number is so small according to the HDB – why don’t the HDB just buy back such small numbers of ‘ethnic quota problem’ flats at an independent market valuation?
After all, a small number should not be a problem for the HDB, but a very serious problem for an individual flat owner who may be getting no buyers at all, or offers that may be 60 per cent lower than that of neighbouring younger non-ethnic quota flats.
Leong Sze Hian
