Source : The Straits Times, Jan 8, 2008
THE recent sale of City View@Boon Keng has brought property prices to a new level. It seems the prices offered are cheaper than other private properties in the area. However, one question that needs to be asked is whether this is an HDB property or a private one. All reports have labelled it HDB, but are these HDB prices?
As part of the Design, Build and Sell Scheme (DBSS), the HDB has allowed private developers to buy the site and then develop it for sale. Benefits of this scheme have been widely publicised in the media as well as on the HDB website. On paper, it seems a wonderful prospect for both the public and the HDB. The public get flats with better quality, while the HDB does not have to build them itself.
One criterion set by the HDB was that the combined income of applicants must be below $8,000. Thus, if a couple buy the most expensive flat in City View@Boon Keng at more than $700,000, they face the prospect of paying over $2,000 in instalments, based on a 90 per cent loan over 30 years. To service that amount, they have to fork out additional cash on top of their CPF contributions. The rationale is about the same, even if they buy an average priced flat for about $500,000. Unless applicants have healthy savings, they will spend a significant portion of their lives paying off their loans.
The HDB may need to review the criteria it has set for the DBSS. Although they may have worked for past HDB projects, they may no longer apply to the DBSS. If the HDB decides the DBSS is the concept for Singapore's future housing development, it should take into serious consideration the prices private developers will set. Affordable housing may no longer be realistic if we leave these issues unaddressed.
Chan Han Jun
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Source : The Straits Times, Jan 23, 2008
BTO exercises mainstay of new flat supply
I REFER to the letter from Mr Chan Han Jun, 'Review criteria of HDB design-&-build scheme' (ST, Jan 8).
The Design, Build and Sell Scheme (DBSS) was launched in 2005 to complement HDB's sales scheme. The objective was to offer HDB flat buyers an additional choice to meet their varied needs and aspirations. Under the DBSS, private developers will determine the pricing of the flats, taking into consideration the location, design features and demand from eligible buyers. It is intended to be only one of the many sales options, including resale flats, to cater to the diverse needs of flat buyers.
We would like to clarify that HDB's Build-to-Order (BTO) sales exercises will remain the mainstay of new flat supply. Under the BTO sales exercises, buyers are given a choice of Standard and Premium designs, as well as flats of varying sizes, prices and locations. HDB remains committed to ensuring their affordability for their target income groups. HDB has also increased the launch of BTO sales exercises in response to demand.
Flat buyers should consider the various options of flats available, based on their needs and affordability. As buying a home is a long-term financial commitment, buyers are advised to exercise financial prudence and purchase a flat within their affordability.
Leong Chok Keh
Deputy Director
(Policy & Property)
for Director (Estate Administration & Property)
Housing & Development Board
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