PRICE ADJUSTMENT FOR HDB FLATS

Mr Tay Beng Chuan asked the Minister for National Development whether there are many units of Housing and Development Board (HDB) flats which remain unsold in the new HDB estates and, if so, whether HDB (i) is considering a downward price adjustment in response to the less favorable market demand; and (ii) will take necessary action to ensure that delay in the sale of newly-completed flats will not cause prolonged delay in the payment of retention monies to its building contractors.

Mr Mah Bow Tan: HDB offers flats in non-mature estates to applicants on the Registration For Flats System (RFS) queue through its quarterly selection exercises. As there is a time lag between application and selection of flat, it is inevitable that some flats are not taken up during the selection exercises for various reasons. These flats are being offered to applicants in subsequent selection exercises.

On the pricing of HDB flats, HDB reviews the prices of its flats regularly to ensure that they remain affordable to Singaporean households, especially young couples and low-income families. It also takes into account various factors such as the location and attributes of the flats, and the prevailing prices of resale HDB flats.

On payment to contractors, HDB informed me that payment to its contractors is not related to the sale of the flats. HDB's mode and timing of payment to its building contractors, including the retention monies, are governed by the terms and conditions of the building contracts between HDB and its contractors. HDB assured me that it has not delayed the payments to its building contractors.