HDB RESALE FLATS (Review of posted prices)

Dr S. Vasoo asked the Minister for National Development whether the Housing and Development Board will review the posted prices of HDB resale flats, as the 140% ceiling on loans imposes financial constraints on potential buyers.

Mr Dhanabalan: Mr Speaker, Sir, at present, the sum of CPF funds used and the amount of loan taken from HDB by a buyer of a resale flat cannot exceed 140% of the posted price of the flat. This ceiling, of 140% of posted price, is imposed by the CPF Board.

The posted price of a particular flat type varies according to the location, and is used as the base price in setting the sale prices of new flats. HDB is currently reviewing its schedule of posted prices for resale flats. The review will take into account trends in the primary market for new flats as well as the secondary market for resale flats.