What is the actual cost of a HDB flat?


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Silence Sky

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Sep 5, 2006
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#1
There is a thread discussing on the medical cost, and how did our medical system fair when compared to those of the developed nation.

This topic somehow directs my thought to our public housing scheme.
HDB used to sell a four room flat for $25,000 in the 80’s, today a similar flat cost about $200,000 on average. Did our real wages catch up with the housing cost? I suppose technology advancement has help to cushion some of rising construction cost. In the 80’s, architects need 9 months or more to produce the blueprint, today we can do it in less than a month with the help of designing software like Autocad.

Is this the true price for a HDB flat and is it sustainable?
I see it as a classic case of market failure, where the builder monopolized the market and determine the selling price. There are quite a lot of empty units around and HDB is engaging private agents to help market these flats. There is supply but no demand and the price is still very high. This is a sign of an inefficient market. I have heard a lot of people are using half of their life time paying off the HDB loans. They have no saving when they retire, except for the miserable sum in the CPF SA.

The men in white tell us that garment subsidize the first time buyer $40,000.
I am wondering, what is actual cost for building one unit? If the building cost is lower than the selling price, how can garment claim that they subsidize its citizen on the HDB flat.

This sticky price will hurt this generation and all the future generations to come. If the garment decided one day to break this vicious cycle of sticky price, what will happen to those who bought during the peak of property (before 1997).

What should the garment do? Which generation should the garment sacrifice?
This is not a simple problem, do you have a solution?
 

Sjourn

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Aug 9, 2004
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#2
It is based of market price..

Someone ever complained in the newpaper, the answer from the minister in charge never gave an answer.

I ask HDB, why so expensive for 4 rm, they say, oh...singapore very small, so price is high.

They will never ever tell us the actual cost. Unless you know someone in charge of costing.
 

Lmodel

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Jun 19, 2005
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#3
It is based of market price..

Someone ever complained in the newpaper, the answer from the minister in charge never gave an answer.

I ask HDB, why so expensive for 4 rm, they say, oh...singapore very small, so price is high.

They will never ever tell us the actual cost. Unless you know someone in charge of costing.
The avg costs of a 4 rm flat based on tender price is about $60,000.00 IIRC. When asked on the questions why are they selling us at many times the original price, the reply is "coz we got to take into consideration the nearby amenities built (e.g. Park, playground, swimming pool, stadium, etc.)

Recently, my block is selected for lift upgrading. The costs after "subsidized" is about $1,125.00. However, the lift upgrading in a nearby estate cost $400++ a year ago and my opp. block (which was upgrade just months ago) cost $900++. The block opp is exactly the same size as mine. When the surveyors come round and we enquired on this, their reply was "coz its different mah..." I was like :confused: :confused: :confused:
 

Ryonpepper

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Apr 2, 2006
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#4
This topics has been brought up by so many ppl, but MBT is still keeping quiet on this.
Haiz...... 66.6% voted for them and they keep quiet.....that's what Sinkies opted for! Cannot blame anyone.
If blame or complain hor, some "elite" might again make noise.....hope that the Wee Shu Min is not reading this thread! :p
 

auron

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Apr 15, 2003
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#5
the actual cost of a HDB flat is a state secret....
can never divulge to singapore peasants....

anyway 66.6% of the ppl agree to let the gahmen keep the actual cost of a HDB flat a secret.
 

clarinet

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Nov 16, 2004
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#6
Don't like, not happy, leave sg lor.. what the big deal. Sg still can get many forren telan here... :bsmilie::bsmilie::bsmilie:
 

Sep 2, 2006
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#7
Recently, my block is selected for lift upgrading. The costs after "subsidized" is about $1,125.00.
Wah! Mine just selected not too long ago as well.
And it's $3k! Something like paying only 10% of the actual.
And it's already so noisy even though they haven't even done the actual upgrading!
 

clarinet

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#8
Wah! Mine just selected not too long ago as well.
And it's $3k! Something like paying only 10% of the actual.
And it's already so noisy even though they haven't even done the actual upgrading!
then don't cry for upgrade during election :what:
 

clarinet

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Nov 16, 2004
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#11
BTW, does HDB property resale price rise???

I also heard private property resale price increase...

Had not really head of HDB one :think::think:
 

waileong

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#12
How much it costs is not important. What is important is how much people are willing to pay. From resale transactions, one can see that people are willing to pay up to $500k for a 5-room flat in Marine Parade.

So how?

Whether it costs HDB $1 or $10 or $100,000 to build the flat is not important. In fact, it could be argued that if the resale market price is $400k, it would be unfair for HDB to sell it at $200k even if that is the cost of the flat. Why? Because only one person gains, and that's the guy who got balloted for the flat.

By selling it close to $400k (say $300-350k), at least the money goes to HDB to help it build more flats in future. And yet, the flat owner still enjoys a "subsidy" which is really a discount from the market price.
 

clarinet

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Nov 16, 2004
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#13
How much it costs is not important. What is important is how much people are willing to pay. From resale transactions, one can see that people are willing to pay up to $500k for a 5-room flat in Marine Parade.

So how?

Whether it costs HDB $1 or $10 or $100,000 to build the flat is not important. In fact, it could be argued that if the resale market price is $400k, it would be unfair for HDB to sell it at $200k even if that is the cost of the flat. Why? Because only one person gains, and that's the guy who got balloted for the flat.

By selling it close to $400k (say $300-350k), at least the money goes to HDB to help it build more flats in future. And yet, the flat owner still enjoys a "subsidy" which is really a discount from the market price.
with this 400K... i can get a car and a house with big big garden.. overseas.
 

melvin

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Jun 4, 2005
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#14
BTW, does HDB property resale price rise???

I also heard private property resale price increase...

Had not really head of HDB one :think::think:
Yes! HDB prices rises abit about 1% nt much diff lah... like rise on paper oni:bsmilie:

Private ppty depends on which area....?:think:
 

clarinet

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Nov 16, 2004
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#16
Yes! HDB prices rises abit about 1% nt much diff lah... like rise on paper oni:bsmilie:

Private ppty depends on which area....?:think:
then what the point of forking out half a million to invest in HDB...
 

melvin

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Jun 4, 2005
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#17
then what the point of forking out half a million to invest in HDB...
Well got $ no place to spend!:bsmilie:

Reasons mite be cos attached to dat pl nt willing to move out of it! No one else in dat pl is selling! To be near love ones? Location is in a prime area when comes to buying house is all abt location dun u agree?

These r some of the reason dat it is at such a hi price! For the above reasons ppl r willing to pay a premium!
 

clarinet

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Nov 16, 2004
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#18
Well got $ no place to spend!:bsmilie:

Reasons mite be cos attached to dat pl nt willing to move out of it! No one else in dat pl is selling! To be near love ones? Location is in a prime area when comes to buying house is all abt location dun u agree?

These r some of the reason dat it is at such a hi price! For the above reasons ppl r willing to pay a premium!
pay a permium for HDB :nono::nono: unless it return is 2-3time of the value :bsmilie:
 

melvin

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#19
Wah! Mine just selected not too long ago as well.
And it's $3k! Something like paying only 10% of the actual.
And it's already so noisy even though they haven't even done the actual upgrading!
But when come to resale it is abt 15k-30k difference;p
 

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