How HDB flats are priced affordably !


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Silence Sky

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#1
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"
 

di0nysus

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#2
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
 

Silence Sky

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#3
I remember they took my grandfather's land at few hundreds dollars and pay us a few tens dollar for my durian trees. :)
 

Silence Sky

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#4
I tried so hard not to bring up this topic, but every time I read the papers.. My Blood boils...:cool:

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.
 

kietgnoel

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#6
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? :bigeyes::bigeyes: ;)
 

ortega

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#7
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
 

Silence Sky

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#8
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.
:dunno:

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

aeskywan

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#9
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. :)
 

sORe-EyEz

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#10
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! ;p
 

Parka

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Nov 18, 2005
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#11
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.
 

Mar 5, 2006
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#12
The objective of having a roof over every head is still met nonetheless.
 

mccm33

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#14
our medias here are not welcome ,they forgot we're online aka live .

we are staying in a one animal power .
 

mccm33

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#15
but we always throught(from schoolssss) we are humans(ideology by some) ,here is the result when news can fools many .
 

scanner

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#16
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!:bsmilie::thumbsup:
 

Mar 5, 2006
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#17
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!:bsmilie::thumbsup:
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.
 

sORe-EyEz

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#19
wait till population hit 6 million. then we'll have yet even smaller homes at higher pricies. :sticktong
 

V

vince123123

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#20
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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