INCREASED COST OF LAND ACQUISITION (Effect on prices of HDB flats)

The following question stood in the name of Mr Heng Chiang Meng -

Mr Heng Chiang Meng: To ask the Minister for National Development whether the expected increased cost of land acquisition by the Government will result in higher prices of Housing and Development Board flats.

Mr Eric Cheong Yuen Chee (Toa Payoh): Question 2, Sir.

Dr Lee Boon Yang (for the Minister for National Development): Sir, the recent change in land acquisition compensation will increase the Government's cost of acquiring land for public development including public housing. In the case of land for public housing, this increased cost to Government has to be met by either taxpayers or by HDB flat purchasers.

The prices of HDB flats are not determined solely by land cost and construction cost. HDB prices its flats to keep them within the limits of affordability by Singaporeans. While the Board tries to adopt more market-related practices such as premium and discount pricing, flats will continue to be priced to achieve our policy of a full home-owning society. The recent change in land acquisition compensation will not in itself result in higher prices of HDB flats.