PRICE HIKE IN BUILDING MATERIALS (Effect on HDB flats)

Mr Ng Kah Ting asked the Minister for National Development (a) whether there has been a recent price hike in some building materials; and (b) whether this will result in higher building costs of Housing and Development Board flats.

Mr Lee Yiok Seng (for the Minister for National Development): Sir, I am answering on behalf of my Minister.

According to an HDB survey, the price of granite aggregate in the private sector has gone up by 8% to 12%. Price of ready-mixed concrete has risen by 2% to 3%.

For materials such as sand, cement and steel, the HDB's existing building projects are protected by long-term supply arrangements at fixed prices. In the case of imported materials such as electrical goods, there was a slight increase in the third quarter of this year. This affects 10% to 15% of the cost of electrical installations for HDB flats, which in turn forms only 3% of the total building cost. Therefore, there has been a small but not significant increase in the building costs of HDB flats which are undergoing construction. However, if prices continue to increase, this is bound to affect the building costs of new HDB flats. Should this happen, tenders for construction of new flats will reflect it.

Mr Ng Kah Ting: Sir, may I ask the Senior Parliamentary Secretary whether there will be a resultant increase in the pricing of HDB flats?

Mr Lee Yiok Seng: Sir, unless there is a significant increase in tender prices which will definitely influence the building costs of the new HDB flats, selling prices of the HDB flats will not go up.