While private property developers build projects for the sole purpose of making profits, NTUC Choice Homes Co-operative Limited does it to help families to improve their lifestyles.

The idea of the National Trades Union Congress establishing a housing cooperative arose in 1995. The aim was to help more Singaporeans meet their aspirations to own private property by delivering quality housing at fair and affordable prices. Beyond this responsibility, NTUC Choice Homes has now also made it its business to achieve two self-set social performance indicators - to sell properties at prices generally below the average price for comparable properties and passing savings from projects back to purchasers.

Property prices had shot up by 36% in 1993 and 42% in 1994. With rising affluence, a growing number of Singaporeans aspired to live in private housing but they could not afford to do so.

Mr Lim Boon Heng, Secretary-General of NTUC, told NTUC News (6 January 1995) that land cost, construction cost and profit margin of the developer were three factors that largely contributed to the prices of private property. As land and construction costs were fixed by the market, how much the developer could make at the end of the project would depend on whether or not there would be high demand for it.

Mr Lim felt that by becoming a developer, NTUC's housing cooperative could curb upward swings in prices by selling properties at lower profit margins. It would build condominiums to meet the needs of middle-income earners who had difficulty upgrading from Housing Board flats because of spiralling property prices.

In August 1995, Prime Minister Goh Chok Tong, in his National Day Rally speech, announced that HDB would stop building executive flats and those in the queue for such flats would be diverted to the soon-to-be formed Executive Condominium (EC) line to meet the needs of graduate couples and HDB upgraders for private housing. Initially, Pidemco, a Government-Linked Company, would build these ECs in Jurong East and Pasir Ris. If demand for such housing was good, the government would invite other non-profit organisations, such as housing cooperatives, to participate in the new scheme.

NTUC Choice Homes was registered in November 1995 with more than $63 million of contributions coming from NTUC, the Singapore Labour Foundation (SLF), 43 affiliated unions, NTUC Income Co-operative Limited and NTUC Fairprice Co-operative Limited.

In launching NTUC Choice Homes in July 1996, Mr Lim said: "Choice Homes can help set benchmarks for the price and quality of mid-range condominiums and apartments. Not only will this provide buyers with more choices, it will also give them a better idea of pricing and quality, for them to make more informed comparisons and decisions. By providing the alternative, we hope it will have some effect on moderating prices in the market."

It certainly did. By launching Simei Green at $410 psf and Yew Mei Green at $430 psf, developers of properties within the two vicinities were forced to review and bring down their prices to attract buyers.

From its first project, Simei Green Executive Condominium, to its fifth, Bishan Loft, an Executive Condominium which is expected to be granted Temporary Occupation Permit (TOP) at end-2003 -NTUC Choice Homes has returned some $4 million in savings to more than 2,000 homeowners. The developer did this in various ways, by absorbing stamp fees, between three and 12 months of maintenance fees, contributing to the sinking funds and purchasing shopping vouchers and NTUC LinkPoints for eligible buyers.

In September 2002, NTUC Choice Homes launched a 391-unit Park Green Executive Condominium in Sengkang at an average price of $368 psf, setting new benchmarks for the pricing and quality of executive condominiums yet again. In support of the labour movement, 10% of the units were set aside for union leaders and members in an exclusive preview. As was the case in its other EC project, NTUC Choice Homes also set aside 5% of the units for grassroots leaders. To-date, 70% of the units have been sold.

Besides residential projects, NTUC Choice Homes has also built Rivervale Mall. Operational since the fourth quarter of 2000, it has maintained 100% tenancy rate at satisfactory rental. The Mall was sold to NTUC Fairprice Co-operative Limited in December 2002.

In its last annual report released in September 2002, Board Chairman, Mr Ng Ser Miang, said NTUC Choice Homes will continue to source for new development sites to keep alive its mission of providing more Singaporeans with quality living that is within their reach. He also gave the assurance that NTUC Choice Homes directors will continue to take a prudent approach to the development of any project.

Newly-appointed Chief Executive Officer, Miss Adeline Sum, echoed his sentiments. She feels the property market will remain weak in the next six to 12 months. "But, NTUC Choice Homes will continue to launch projects at affordable prices to meet real needs, instead of trying to hold out for the market to turn," she said.

As NTUC Choice Homes offers preferential treatment to union leaders and union members in the allocation of every property it launches, with grassroots leaders next in line ahead of other members of the public, it pays to belong to the NTUC family.