DBSS suspension a wise move

Lately, there have been a lot of controversies surrounding the Design, Build and Sell Scheme (DBSS).

Now what exactly is DBSS?

It is a public housing scheme under the purview of the Housing & Development Board (HDB) which aims to give Singaporeans wider housing options.

In the case of DBSS, it allows Singaporeans to have a condominium-style living option, but minus the facilities.

Under this scheme, the entire construction, pricing and selling of the flats will be undertaken by private developers, just like Centrale 8 in Tampines by Sim Lian Group.

Projects under DBSS are subjected to the same HDB rules such as the five-year Minimum Occupation Period (MOP) and income ceiling.

Controversy
When news broke that the most expensive five-room flats at Centrale 8 would cost $880,000, it created a lot of controversy.

The news even caused industry leaders like PropNex CEO, Mohamed Ismail to do a double take when he first heard about the prices.

Coming at the back of the recently concluded general elections where housing issues dominated, it left a sour taste in many Singaporeans' mouth.

Wise move
Although Sim Lian subsequently slashed the price of its most expensive unit to $778,000, it would be stretching the budget quite a bit, considering that the monthly household income ceiling for such flats is $10,000.

Also, in my opinion, it is overpriced, considering it is still a public housing project, located in a non-prime area with no condominium facilities to speak of.

With the Resale Price Index (RPI) expected to hit 179.9 points in the second quarter and a lot of Singaporeans on the waiting list for BTO flat applications, Minister Khaw Boon Wan’s decision to suspend future land sales under DBSS is a wise move as it shows he is listening to Singaporeans' concerns.

I urge his ministry to go back to basics by providing affordable homes for all.