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Thread: How HDB flats are priced affordably !

  1. #1

    Default How HDB flats are priced affordably !

    Quoted from 'The Strait Time'

    "HDB adopts a market-based pricing approach so as to reflect the true subsidy that buyers enjoy.

    Under this approach, HDB determines the market value of the flat, based on its location, finish and other attributes. Then, it sells the flat at a discount to the market value.

    HDB buyers understand this, and appreciate that new HDB flats are priced lower than resale flats.

    Similarly, when they want to sell their flat in the open market, they do so at the prevailing market value, not at their cost of purchase of the flat.

    We also wish to highlight that this approach has enabled HDB to continue to price its flats affordably despite the current sharp escalation in construction costs.

    Currently, a new four-room flat can cost close to $300,000 to develop, taking into account land, building and other costs.

    This is significantly higher than the subsidised price of a four-room flat in Punggol/Sengkang sold by HDB at about $200,000 to $260,000.

    Through the market-subsidy approach to pricing, HDB has been able to keep its flats affordable for Singaporeans.

    On average, first-time flat buyers need to pay only about 20 per cent of their monthly household income to service their housing loan.

    This is well within the 25 to 30 per cent that is commonly cited internationally as the benchmark for affordable housing.

    Lower-income households can enjoy additional help in the form of the Additional CPF Housing Grant.

    Mr See commented that young couples have to wait as long as six years for new flats. This is incorrect.

    New Build-To-Order flats take about three years to complete from time of registration.

    Those with urgent housing needs can consider the resale market where there is a wide range of resale flats to match the preference and budget of buyers.

    Eligible first-time buyers can also enjoy a CPF Housing Grant of $30,000/$40,000.

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

  2. #2

    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by Silence Sky View Post
    Currently, a new four-room flat can cost close to $300,000 to develop, taking into account land, building and other costs.
    Kee Lay Cheng (Ms)
    Deputy Director (Marketing & Projects)
    for Director (Estate Administration & Property)
    Housing & Development Board"
    I wonder how they get this number

  3. #3

    Default Re: How HDB flats are priced affordably !

    I remember they took my grandfather's land at few hundreds dollars and pay us a few tens dollar for my durian trees.

  4. #4

    Default Re: How HDB flats are priced affordably !

    I tried so hard not to bring up this topic, but every time I read the papers.. My Blood boils...

    Why they like to treat us like a fool.

    Why can't they just be frank and tell us HDB is priced to lock us down.
    Last edited by Silence Sky; 18th July 2008 at 06:19 PM.

  5. #5
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    Default Re: How HDB flats are priced affordably !

    thats true..

  6. #6
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    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by di0nysus View Post
    Quote Originally Posted by Silence Sky View Post
    Quoted from 'The Strait Time'


    Currently, a new four-room flat can cost close to $300,000 to develop, taking into account land, building and other costs.
    I wonder how they get this number
    1. Let's say gahmen sells land to private developer.
    2. Assume private developer builds exactly same flats.
    3. Private developer prices flat at $300,000.
    4. Therefore, market price is $300,000.
    5. HDB sells flat to you at $200,000.
    6. Hence, you get a $100,000 subsidy.
    Sounds good?

  7. #7
    Moderator ortega's Avatar
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    Default Re: How HDB flats are priced affordably !

    and when you sell the flat for a fat profit, no one complains

    come on people, the market is Singapore and a flat is the cheapest housing around

    do you know the operating cost of HDB? somehow or another that cost must come from somewhere

  8. #8

    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by ortega View Post
    and when you sell the flat for a fat profit, no one complains

    come on people, the market is Singapore and a flat is the cheapest housing around

    do you know the operating cost of HDB? somehow or another that cost must come from somewhere
    As far as I know, all costs outlay will eventaullay be recovered from sheep.

    SMRT making handsome profit.
    Telco making record profit year after year.
    Never heard Town councile is running at deficit.
    Even NKF is making profit from selling drugs to patients.


    So far.. No one at the top dares to debate the buliding costs.

  9. #9

    Default Re: How HDB flats are priced affordably !

    Well put it this way... telco and SMRT are listed companies. Why think of it in another way, invest your monies in their shares and you will no longer be complaining about their profits... in fact you will be wondering how much more money they are making.

  10. #10
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    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by aeskywan View Post
    Well put it this way... telco and SMRT are listed companies. Why think of it in another way, invest your monies in their shares and you will no longer be complaining about their profits... in fact you will be wondering how much more money they are making.
    will owning shares make it alright for them to charge a higher price? if each S'porean invest in their shares, does it mean we'll all be able to afford HDB homes?

    if after factoring economies of scale & years of expertise do not yield more affordable homes, wad could? were later generations of homes built with too many frills?

    ooh, wad makes HDB homes (or not) affordable? i'll like to hear it from ya'all!
    Last edited by sORe-EyEz; 19th July 2008 at 12:31 AM.

  11. #11
    Member Parka's Avatar
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    Default Re: How HDB flats are priced affordably !

    Somehow I find it quite hard to believe the cost is actually $300,000. Maybe a large chunk of it goes to the cost of land.

    I understand perfectly well if the government would choose to value land at super high prices. That would mean Singaporeans have to work hard to be able to afford housing. That in turn makes the economy strong.

    Strangely also, I thought this amount is the most highly guarded secret of HDB. It's suspicious that they are actually releasing this figure, when years ago, you can't even pry it out of the mouth of MPs.

  12. #12

    Default Re: How HDB flats are priced affordably !

    The objective of having a roof over every head is still met nonetheless.

  13. #13

    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by Silence Sky View Post
    I tried so hard not to bring up this topic, but every time I read the papers.. My Blood boils...

    Why they like to treat us like a fool.

    Why can't they just be frank and tell us HDB is priced to lock us down.
    yah, full of craps.
    Objection !!!

  14. #14

    Default Re: How HDB flats are priced affordably !

    our medias here are not welcome ,they forgot we're online aka live .

    we are staying in a one animal power .

  15. #15

    Default Re: How HDB flats are priced affordably !

    but we always throught(from schoolssss) we are humans(ideology by some) ,here is the result when news can fools many .

  16. #16

    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by contaxable View Post
    The objective of having a roof over every head is still met nonetheless.
    Yes, at expense of the man on the street to take 20 to 30 years loan to repay the government. The real joke is after paying so much, you don't technically own the HDB flat!

  17. #17

    Default Re: How HDB flats are priced affordably !

    Quote Originally Posted by scanner View Post
    Yes, at expense of the man on the street to take 20 to 30 years loan to repay the government. The real joke is after paying so much, you don't technically own the HDB flat!
    The melting pot of races was achievable because of affordable housing. In those days, people can own a nice new flat costing less than S$20k. Everyone was happy and racial problems were fixed when a certain formula was applied to spread out people, making them neighbors one to another.

    Many countries i been to had people asking me how the melting pot problem was solved. People who heard the story applaud and how they envied us.

    So, with a teeny winny hdb unit (since flats are shrinking in sizes) costing over 300k, I believe affordable housing is no longer a key strength.

    This will mark the birth of more hardship for newly weds.

  18. #18
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    Default Re: How HDB flats are priced affordably !

    Have the complaining crowd seen the land mass of Singapore vs the population count?

  19. #19
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    Default Re: How HDB flats are priced affordably !

    wait till population hit 6 million. then we'll have yet even smaller homes at higher pricies.
    Last edited by sORe-EyEz; 19th July 2008 at 05:27 PM.

  20. #20
    vince123123
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    Default Re: How HDB flats are priced affordably !

    I recall reading somewhere before that the building costs does not exceed S$100k per flat. Unable to further substantiate though.

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