I Thought 2-Room Flats No Longer Existed
A while back, HDB announced (or the government announced) that it would only build 4-room flats or bigger, since there was no demand for smaller flats.
Of course, we know that they had to do a policy turnaround and build 3-room flats. So we thought that besides the "studio apartments" designed for the old folks, the 3-room units were the smallest, right? Wrong!
The HDB is now building 2-room flats! They are part of the BTO projects at Waterway Banks and Waterway Ridges. At $85 k, they are for the low-income folk. In fact, if you want the Special Housing Grant and have less than $1500 in month household income, you can only buy a 2-room flat. At least with all subsidies in place, the housing loan you take will be $25 k, making monthly repayments more realistic. At 45 square metres, it is really a one-bedroom apartment.
It is only when household income is above $1.5 k that there is an opportunity to buy a 3-room flat, but the total subsidy drops from $60 k to $50 k.
With a 2-room flat, it is almost impossible to raise a family, whereas the 3-room flat provides a little expansion space. Still, affordability is contingent on being able to get a 30-year loan. Maintaining a 2-room flat still involves about $200 of expenses, once you add loan repayments, utilities and conservancy charges. What if you and your spouse each earn $500? What savings would you have?
What of the Finance Minister's statement that a family with a $1000 income can afford a small flat and families earning $1300 or $1500 can buy a medium-sized flat. I take the small flat to mean the 2-room unit, but can a family earning $1300 afford or buy a 3-room unit? Even a couple earning a combined income of $1500 will have problems, I think.
I wonder what is happening to our country, when your leaders claim we are progressing and getting richer, but the poor amongst us have to take steps back in their standards of living...
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