The monthly mortgage repayment ratio (MSR) of these buyers was revealed in a statement issued by the Ministry of National Development on Monday night (Nov. 7).

This means that these buyers can repay their mortgages with their monthly provident fund income, using little or no cash.

Minister of the Prime Minister's Office and Second Minister of Finance and Second Minister of National Development, Ms. Ieng Lan Nee, just had a conversation with the Leader of the Opposition, Mr. Bian Tan Seng, in the Parliament at noon on the same day on the cost of HDB development and subsidies.

He asked why the authorities only provided the price to income ratio and MSR of buyers in non-mature HDB areas, but did not disclose the relevant data for mature HDB areas.

HDB previously pointed out that new HDB flats in non-mature HDB areas are sold at about five times or less than five times the annual household income.

In response to a verbal query from Forward Party non-constituency MP Leung Man-fai about land prices, Ying Lanny also elaborated on the relationship between state-owned land, proceeds from land sales and national reserves.

She said that the sale of state land only converts tangible assets into financial assets of equivalent value. Even if the land reverts to state ownership after the land lease expires, the proceeds from the previous land sales only compensate for the state's loss of land use rights during the period, and the state reserve does not increase in value.

It is only when the government invests its financial assets and achieves growth that the reserves will increase, which is the result of the current government's prudent management of reserves and cannot be taken for granted.

Leong also asked the government whether Singaporeans are paying for the state land used for HDB development three times, including: i) the price of the state land when the government initially acquired it; ii) the difference between the HDB's purchase price and the government's acquisition price; and iii) the tax revenue used to cover the losses suffered by the HDB when it bought the land at market price.

In this regard, the British Lantern said that there is no such thing, and reiterated that the government did not profit from the sale of state land to develop HDB flats.

She explained that if the government has to expropriate the land to build HDB flats, it will compensate the owners with the fair market value, which may come from the national reserve or government revenue.

HDB will then buy the land from the government at fair market value.

Some people feel that since this is a transaction between the government and government agencies, why not just transfer the land to HDB at zero cost.

Inlani explained that if the land is not exchanged for equal value, the country's past reserves will be depleted, plus there is no corresponding financial asset to replace it, and it will not be possible to take the proceeds from the land sale and invest them to use the returns to meet expenses.

In other words, land in Singapore belongs to the state, so the current government builds HDB flats and has to pay the market price for the land.

When HDB eventually sells the HDB flats to Singaporeans, it also puts in a high allowance for the market price of the HDB flats and provides a purchase allowance for the buyers.

The actual selling price of HDB flats is therefore often much lower than the total development cost, resulting in a loss for HDB.

The government allocates subsidies to make up the difference, which comes from the National Reserve Net Investment Return Contribution (NIRC) and taxes," said Inrani. "It is not only Singaporeans who pay these (taxes), but also permanent residents, foreigners working and living locally, tourists, companies and other tax-paying entities."