Khaw Boon Wan: We priced BTO flats to be ‘affordable’ to all Singaporeans
Posted by temasektimes on August 14, 2012
Speaking in parliament yesterday, Mr Khaw said:
“We price BTO flats to be affordable, well within one working lifetime. There is no need for working couples to take 50-year mortgages to buy HDB flats.”
United Overseas Bank (UOB) started offering 50-year home loans last month in response to sky-rocketing property prices which have priced many ordinary Singaporeans out of the housing market.
The prices of HDB flats have nearly doubled in the last five years while the wages of Singaporeans have remained more or less stagnant during the same period of time after factoring in inflation.
Weighing in on the same issue, Deputy Prime Minister Tharman Shanmugaratnam also warned of “adverse implications” for borrowers, the property market and banks if 50-year home loans become widespread.
“Buyers may therefore believe that they are able to afford a larger or more expensive property. If this becomes widespread, it will increase the demand for properties,” DPM Tharman said.