PRICING OF LAND FOR HDB FLATS

Mr Chiam See Tong asked the Minister for National Development if he will state the market prices of land charged by the Housing and Development Board in pricing of its flats sold at (i) Yishun New Town, (ii) Zhenghua New Town, (iii) Hougang New Town, (iv) Potong Pasir, (v) Bedok New Town and (vi) Jalan Besar.

Mr S. Dhanabalan: The Housing and Development Board does not charge the market prices of land in the pricing of its flats. This accounts for the HDB's huge deficits in its sale of flats.

HDB pays for the land it purchases from the Government at the market price assessed by the Government's Chief Valuer. This is the standard procedure adopted for the alienation of State land, whether to private developers, statutory boards or other government development agencies.

Cost data for individual HDB development is only available since the HDB introduced the new accounting system in 1985. Bedok and Jalan Besar were completed before 1 Apr 85 and detailed costs are not available. HDB did not buy any land in Yishun and Potong Pasir from the Government in the last two years. These two areas are classified as New Town Zone and Outer Urban Zone. The following table presents the average land cost paid for by the HDB in Bukit Panjang (formerly known as Zhenghua) and Hougang. The land cost data for Pasir Ris and Toa Payoh (Temple Estate), are also included as examples for New Town and Outer Urban Zones respectively. ____________________________________________________ Average prices for land paid by HDB (FY 86/87 and FY 87/88) ____________________________________________________ Pasir Ris New Town $320 psm (New Town Zone) comparable to Yishun New Town Hougang New Town $490 psm (Outer Suburban Zone) Bukit Panjang New Town $470 psm (Outer Suburban Zone) Toa Payoh New Town (Temple Estate) $940 psm (Outer Urban Zone) comparable to Potong Pasir ____________________________________________________