[Bigiron]

I was honoured to represent the PSP at CNA’s Roundtable discussion last night. 

Minister Chee Hong Tat commented that the PSP could not know that our Affordable Homes Scheme (AHS) would not crash the housing market. As the format of yesterday’s roundtable did not give me sufficient time to engage on all the points that I wanted to address, I shall make a response today.

Minister Chee’s comments did not directly address the points I had made about this during the discussion. Nor did he go beyond saying that there was a “risk” this would happen, or explain why our AHS proposal would necessarily have this effect.

As I explained at the Roundtable, the AHS will not crash the resale market because AHS flats will form less than 10% of total HDB flat supply after 5 years. The resale market is also underpinned by a large pool of demand from buyers who are ineligible to get BTO flats, unable to get BTO flats, or want to live in specific locations. These sources of demand will support resale flat prices.

The PSP has put forward responsible, rational, fact-based proposals in Parliament and in our manifesto. Going forward, we hope to build on this constructive political work with fully elected MPs.

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