Many HDB lessees are still praying for a miracle despite the drastic drop in prices of flats older than 40 years (image below).
As for the PAP, it business as usual: retirees die their own business. :(
Any issue that doesn’t affect PAP elites will continue to fester until Singaporeans start to think and pose a threat to their grip on power, eg PAP constructed more HDB flats only after losing one GRC.
Similarly, increasing MRT breakdowns/shutdowns don’t affect chauffeured-driven elites and so they continue to experiment with the system by sending in another general. After the present one has failed.
The problem is bigger than most HDB lessees think. If the solution is simply to allow a similar quantum of CPF to finance mortgage of flats older than 40 vs less than 40 years, PAP would have done so.
The number of flats turning 40 will increase by almost 30,000 this year, averaging 22,000 a year until 2023 (image below). In the subsequent 4 years, HDB/retirement hell breaks loose.
Assuming a difference of $150,000 between the prices of above 40 vs below 40-year old flats, the 300,000 flats turning 40 from 2018 till 2023 will require $45 billion to prop up prices. This excludes flats which are currently older than 40 years.
Tweaking current CPF rules will only kick the CPF-already-no-enough can down the road: a bigger time bomb which PAP has no control over.
PAP has also made it clear that at the end of the 99-year lease, flats will be recycled to make them more ‘affordable’ for future generations.
HDB landlord CEO Cheong in simple English:
Unless PAP flips prata again, retirees who supported PAP have clearly dug their own graves.