PRICES FOR HDB FLATS

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PRICES FOR HDB FLATS

9.

Mr Steve Chia Kiah Hong asked the Minister for National Development (a) how can a similarly subsidised new HDB flat offered by the HDB for sale at S$425,000 three years ago, be now offered for sale by the HDB again at a 27% depreciated price of S$310,000; and (b) how does the HDB resolve the negative impact of such price cuts on existing home owners who had bought the flats from the HDB at the much higher price.

Mr Mah Bow Tan: HDB reviews the selling prices of its flats regularly. In doing so, one of the factors that it considers is the prevailing resale price of comparable flats in the vicinity. Prices of HDB resale flats vary according to the market, like other properties. All HDB flats are priced below their equivalent market prices at the point of offer so that buyers enjoy a market subsidy.

HDB has some unsold flats which were not taken up as a result of the economic downturn. It has been re-offering these flats for sale, to help increase occupancy rates and improve the safety and security of residents who have already moved into the blocks.

Resale prices have declined in the past few years due to the economic downturn. Hence, the prices of unsold new flats that were first offered at the peak of the market have to be adjusted downwards to be in line with prevailing market conditions. However, the adjustments are moderated compared to the fall in resale prices. This helps to stabilise the property market and preserve the value of existing HDB flats.