THE PINNACLE@DUXTON

THE PINNACLE@DUXTON

3.

Mr Steve Chia Kiah Hong asked the Minister for National Development (a) whether the awarded tender price of $279 million by Chip Eng Seng for the 1,848 units of the Pinnacle@Duxton project translates to a construction cost of around $151,000 per HDB unit; (b) whether the average selling price of $380,000 per unit will translate to a sizeable profit of more than $100,000 per unit for the Ministry (after taking into consideration land cost) and, if not (c) what is the actual breakdown of the Government profit or subsidy on the cost of each unit.

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Mr Mah Bow Tan: The reply to (a) is no, as the tender price does not include other construction-related costs, such as consultancy and project management fees and financing costs.

The answer to (b) is also no, because like all flats sold by HDB, the flats at The Pinnacle@Duxton were sold below their market value. The difference between what buyers paid HDB for their flats and the market value of the flats is the market subsidy provided by HDB.

As for (c), HDB flats are priced according to affordability considerations, rather than based on costs. As such, HDB does not compare its costs and sale proceeds on a project-by-project basis.

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