Condo-Style Flats To Be Limited

Source : The Straits Times, Jan 21, 2008

THE pricey condo-style flats that have been in the news lately will remain the minority of public housing units, with the Government pledging on Monday to continue providing affordable homes.

The 616-unit Premiere@Tampines by Sim Lian Land, drew almost 6,000 applications for its two-, four- and five-room flats. -- PHOTO: SIM LIAN LAND

Its assurance came as high-end flats in Boon Keng launched by private developers recently were going for as high as $727,000 for a five-room flat.

The flats come with interior layouts and fittings more commonly seen in private condominiums, such as bay windows in bathrooms, large balconies and built-in wardrobes.

Buyers are also concerned with the soaring prices of resale Housing Board flats which shot up 17.4 per cent last year - the highest in a decade - and the higher- than-valuation prices - by as much as $100,000 - which sellers in coveted districts are demanding.

National Development Minister Mah Bow Tan, addressing these concerns in Parliament on Monday, explained that high-end flats - built under the Design, Build and Sell Scheme - 'serve to fulfil the needs of a niche segment of the HDB market - those with higher aspirations and who can afford a higher price'.

Under the programme, developers are free to design and price the flats as long as they work within the rules of public housing.

This means they have to sell flats to families earning no more than $8,000 a month - the limit for households buying public housing.

The first such project, the 616-unit Premiere@Tampines by Sim Lian Land, drew almost 6,000 applications for its two-, four- and five-room flats which are sold from $138,000 to $450,000.

The second, the 714-unit City View @ Boon Keng by Hoi Hup Sunway Development, drew about 3,500 applications for three- to five-room flats. Prices ranged from $349,000 to $727,000.

The City View prices had prompted some to question if they were affordable to those earning $8,000 a month.

Nominated member of parliament Eunice Olsen asked if the income ceiling could be raised for such flats.