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The following article was published in our article directory on February 10, 2011.
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Maintaining Good Balance Of Housing Supply

Article Category: Business

Author Name: Amanda xzh

Maintain a pair of young couples have dealt with my complaint, they are also applying to the shore of machine list goose water first yangzhou-the water pre-book HDB flats project HDB flats, however, because the applicant much, they are concerned that the new housing estates in short supply. If the price is rising, and they probably will afford housing estates.

The couple said: "newspaper reported that HDB recent annual built new housing estates quantity has not kept pace with marry number, i.e. the HDB don't for new family provide enough new HDB flats."

Many americans might also have the same concerns. Let me explain why things are not so simple, and the HDB in housing supply planning, how to satisfy people long-term and short-term demand.

For the public to provide affordable housing

In satisfying first homebuyers person demand aspect, for many years by the government to keep the promise is clear and constant -- that's for the general public offer affordable housing. Today, every ten singaporeans of eight is living in HDB flats.

In order to fulfill our commitment to the next generation, the HDB must intensify efforts to help first purchase HDB flats bought the young couple HDB flats. However, this does not mean that we had to build adequate quantity, and let every new families have a new housing estates can choose.

Why did you say so? Because there are always some families choose to buy the resale HDB flats, instead of new housing estates. They will probably due to consider site or HDB flats types and other factors, but decided not to buy new housing estates. The HDB providing them with 3 million yuan to 4 million yuan of accumulation fund loan, still homebuyers allowance allowance, in order to help them buy housing estates. With lower incomes homebuyers person, also can apply for up to four million bonus. In the past ten years, each year 30% to 55% of the option to buy the first homebuyers resale HDB flats, instead of new housing estates.

Part of the first homebuyers person demand, satisfy the resale market after the HDB this calculation of new housing estates demand, again according to demand for building new housing estates, and for the first time homebuyers keep more of flats units. In planning for housing estates, supply the HDB adopted a comprehensive approach. It not only consider marry number, also consider other factors, such as permanent residents and foreigners of introducing the quantity, and the existing housing estates in resale market sales quantities. Because if homeowners died or immigrants, or to change big house or hut, house in resale market sale.

Over the past decade, the HDB were built and sold over 10 million between new housing estates, equivalent to built three shuttle kiln town. During this period, resale market also is very active, total supply more than 30 000 HDB flats. New housing estates and resale HDB flats supply number sum, satisfying the countrymen long-term housing demand.

However, things are not so easy. Although ofbilateral supply in general and predicted consistent, short-term demand fluctuation is bigger, because the homebuyers according to economic outlook and market sentiment to adjust their homebuyers plan. When prices were low, buying a home person might expect prices continue to slide and press soldier motionless, but prices once surges upward, homebuyers counterparts may worry that miss time to buy and flood the market.

So, although the past decade was married to apply for public housing conditions, the number of americans each year maintained at roughly 10,000 6,000 people around, the first time homebuyers to receive subsidies HDB flats demand, but in each year 10,000 between 2000 and ninety thousand between fluctuations. During this period, resale market fluctuations of total trade volume is bigger, annual turnover in 3 million 7,000 Pope to 58,000 Pope between fluctuations.

If the HDB don't consider the market situation, rigid fixation annual supply, then it may cause some years appear oversupply phenomenon. For example from 2002 to 2006, resell HDB flats price is approximately yawing. If was built HDB stick to formulate long-term forecasts supply, so our country current 80 million government HDB flats homeowners have house value, probably already is further down.

Deal with increasing range

Over the past two years market change especially hard to predict. The year before 5 months, the international monetary fund also predict Asia will face "of lasting and serious recession". However, surprising was Singapore's new number of immigrants in an economic recession not decreased their Numbers, and economic activities also to recover quickly.

The market mood also is a important factor. Although there are many foreigners, real estate prices are in the first half of the year before beginning to slow. However, market forecast but in the second half of 2009, global interest rates lower case greatly improved, drive the Singapore as well as regional real estate prices rise sharply.

In view of economic strength, the HDB rebound from the rapid increase in the second half of new housing estates supplies, from the original 60 to 90 between rooms. It later also raised by 2010, new housing estates supply, from original 1 million between 2,000 to 10,000 6000, increase rate between more than 30%.

The HDB also planned to launch up to 2 million in the year 2000 between new housing estates. By such speed perspective, the HDB just two years, can supply than bus kiln existing housing estates more new housing estates.

To determine short-term the correct housing supply is very difficult, even in this respect rather we maintain the balance. Economic situation and market mood change speed, affirmation want more than we rebuilt house plan more quickly. Therefore, the housing estates supply plan to cope with the longer-term demand, we also adopted some measures to deal with buffer short-term fluctuations.

Some people may advise the HDB expand buffer limits, or on the demand appears before they started to build HDB flats to cope with the market fluctuations. But, it will cause some problems, such as the vacancy rate of new housing estates, and caused the cost too high supply may not balance, etc.

Whether we of flats application system is a how the system, we eventually in short supply cannot satisfy the homebuyers person demand, and supply of existing superfluous and owner or make tradeoff between taxpayer adversely. For all the people's interests, we must in these respects to figure out the break-even point.

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