Complete Property Market Updates of Singapore

July 10, 2008

New HDB flats still below market rates

Filed under: Community Voices,General,HBD Reviews — Propertymarketupdates @ 4:02 am

I REFER to Monday’s letter, ‘New HDB flats priced too high’ by Mr Ho Koon Woei.

In pricing new HDB flats, the Housing Board’s main consideration is the prevailing market condition at the time of offer. Resale HDB prices have climbed in the past two to three years, in tandem with the overall upturn in the property market. Notwithstanding these increases, all new HDB flats are priced below their equivalent market prices, so buyers enjoy a generous housing subsidy.

The HDB also takes into consideration flat attributes such as location and design enhancements in pricing new flats. The $329,000 to $396,000 price range of the five-room flats in Punggol Sapphire reflects their superior design standards and prime location, and is net of the market subsidy given by the Government. Similar flats in Punggol go for about $375,000 to $430,000 in the resale market.

From the figures cited by Mr Ho, he is likely to be comparing flats under the recent Build-To-Order (BTO) launch in Punggol, with unsold flats re-offered in 2005 and 2006 under the Walk-In-Selection (WIS) for Punggol. The flats offered under WIS were balance units from earlier BTO projects. They might have less favourable attributes such as low floor units and those located further away from the town centre or MRT. In contrast, Punggol Sapphire is a premium project sited near Punggol Town Centre and MRT station. It comes with enhanced architectural designs, landscaping and better internal finishes. Most of the flats are also provided with features such as green balconies, planters and bay windows.

The HDB is committed to providing affordable public housing to Singaporeans, and will continue to offer a variety of flats of different sizes and designs in various locations to meet the diverse housing needs of its flat buyers.

Kee Lay Cheng (Ms)
Deputy Director (Marketing and Projects)
for Director (Estate Administration and Property)
Housing and Development Board

Source : Straits Times – 7 Jun 2008

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