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(SINGAPORE) Plans to reinvigorate the city centre have generated 'the
buzz'. But it's plans to renew Housing & Development Board estates that
will benefit more people. 'This is where the people live and where we
want to keep the living environment first class and up-to-date,' Prime
Minister Lee Hsien Loong said in his National Day Rally speech on
Sunday.

Highlighting moves to upgrade Toa Payoh - one of Singapore's oldest
housing estate - he said new flats, a new town centre and the HDB Hub
have rejuvenated the area and attracted young couples. And as a result,
'property values have gone up'.

Mr Lee said the government will renew HDB estates 'one-by-one'.
Precincts in Holland Drive and Clementi town centre are the latest to
be
earmarked for redevelopment. By 2010, Clementi will have a 40-storey
complex with a shopping mall, library, town council office and
air-conditioned bus interchange linked to the MRT station.

Mr Lee gave no time-frame for the rate of redevelopment, but property
industry sources yesterday welcomed the news nonetheless. Agreeing that
property values in upgraded HDB estates will rise, Propnex CEO Mohamed
Ismail said the move indicates 'intent on asset enhancement and capital
gains'.

On Mr Lee's announcement of Central Provident Fund (CPF) grants to help
the poor own an HDB flat, Mr Mohamed believes not too many people will
qualify, so there won't be an impact on the HDB resale market. Some who
are renting from HDB may consider taking up the grant, he said. But at
the same time, low rent of about $50 for a one-room HDB flat may make
them think otherwise. By Mr Mohamed's reckoning, about 30,000 people
are
renting from HDB. 'Perhaps a percentage of the CPF grant could go into
paying monthly instalments,' he said.

Also on the CPF grant, Chesterton International associate director
Colin
Tan said that because prices of HDB flats are market-oriented, a lot
needs to be done to identify those in need. 'It is this group which is
ignorant of the help available,' he said.

Mr Tan also said people considering the grant route 'should be mindful
that it should not eat into their cash spending for their daily
necessities - a case of asset-rich but cash-poor'.

But Amy Khor, MP for Hong Kah GRC, said asset ownership is one of the
cornerstones of Singapore society. The rationale behind the CPF grant
is
to address the 'angst and sense of disconnect' that those who do not
own
homes feel, she said. 'This is one way to help them level up.'

Dr Khor said the government could have given out cash grants, but that
would have bred 'dependency and a sense of entitlement'. The CPF grant
is not 'welfare' but 'work-fare', she said. 'You have to be working. If
you are not working, you will not be able to buy a flat.'