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Did HDB make a profit on selling the BTO flats in Ang Mo Kio?

Does HDB make a big profit on selling the BTO flats in Ang Mo Kio at a high price?

The minister for national development said that HDB did not make a profit, after factoring in the cost of land and construction. The deficit is larger when the govt grant is taken into consideration.

From a narrow perspective, the minister is probably right. The books of HDB would probably show a deficit.

However, the buyers have to pay a price that is much higher than similar size HDB flats sold in past decades.

A large component of the increased price is probably due to the cost of land. The HDB has to buy land from the govt at the market price, which has recently sharply in recent years.

The increase in land price is probably due to high demand and insufficient supply. It is well known that the govt controls most of the available land in Singapore. They are probably responsible for increasing the price of land by restricting the supply.

In this respect, they are probably behaving like a greedy capitalist in maximizing their profit, in this case, from the sale of land through its monopoly power.

If the govt wishes to bring down the price of land, they could increase the supply to an extent that the price stops rising. The ability of the govt to increase the supply is probably higher than the ability of the developers to buy the land.

When buyers complain that the govt is making a large profit on selling the HDB flats, they are probably justified in expressing this opinion. The profit did not accrue to HDB, but instead to the govt through the land sale revenue.

The minister should not apply his power to issue the POFMA on the website that alleges that HDB was making a profit. While technically, HDB did not make the profit, the govt did, and that was done through the proceeds of the land sale. We must not argue over technical details, when it is the spirit that counts.

Anyway, I do not want to waste time arguing over semantics and other rubbish.

 

Tan Kin Lian

 

 

yyy
READER COMMENTS BELOW

19 Responses to “Did HDB make a profit on selling the BTO flats in Ang Mo Kio?”

  • Levy:

    Climatic change starts when a new electric car is being made!

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  • xoxo:

    No lah,how can HDB make money?
    It is heavily ($ubsidised)…by the POOR SINKIES.

    Only helps JOB-ROBBING PRs to make MILLION$!
    So,these FTs are all praising the gahmen.
    Only $1million leh.
    When can be $2 million,ah?

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  • Stupid Singaporeans Vote PAP:

    Only fools will believe the government doesn’t profit from BTO flat sale.

    Company A Department, a sole distributor of an essential product, sold it to B Department under the same company with humongous profit & B Department sold it out at cost. Company doesn’t make money?

    Then B Head told the www they don’t make money. Why don’t hear from A Head? The shareholders & owners of the company are laughing all the way to the bank, at all the stupid Sinkies who believe they don’t make money.

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  • Larry:

    Why on earth must HDB pay for the land is beyond me. It is pure absurdity. From one pocket to another but the buyers lose out! As always… greedy PAP.

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  • Practice makes perfect:

    They can lie without blinking or losing a beat.
    5 decades of practice..
    No way in hell or heaven they made a loss instead.
    HDB subsidising is a major hoax.
    Now hdb resale going for $1mil amd over.
    Who’s buying these units?
    Now even 3rm resale prices are out of reach for ordinary folks.
    Should not have come to this stage.
    Its a travesty!

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  • Stupid Singaporeans Vote PAP:

    Good question, Larry. Why on earth must Sinkies keep voting PAP is also beyond me.

    Larry:
    Why on earth must HDB pay for the land is beyond me. It is pure absurdity. From one pocket to another but the buyers lose out! As always… greedy PAP.

    I’m

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  • opposition dude:

    Technically HDB doesn’t make a single cent because whatever the pricing of the flats are HDB isn’t the one keeping a single cent of it, it’s PAP. So the money that we pay for our 99 year lease flats goes to PAP via HDB so they can always say that HDB doesn’t make any $$$.

    What we should be asking is how much money is made from the sale of the BTOs instead. And does all this money made go into the reserves or somewhere else? Perhaps into someone’s (or some peoples’) pockets?

    I’m very surprised that WP doesn’t know how to ask simple questions in parliament like Wai Mun does. I would be very interested to know the answers to the following BTO questions but amazingly they have never been asked…..

    - How much does the winning bidder of each respective BTO project win the bid for?

    - How much is made from selling all the flats in a BTO?

    - How long do the first owners of a BTO take to pay for the flat completely?

    - How many of the BTO owners are new citizens? Both husband and wife new citzens how many? One spouse as a new citizen how many?

    It would be very interesting to know the answers to these and to see what kind of silly answers ministers will give. After all, the defence minister already embarrassed himself by not having the balls to reveal how many new citizens DIDN’T do NS after proclaiming that “A majority” do NS. Some majority eh? So scared to reveal those who escaped NS so as to let us compare numbers is it?

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  • MarBowling:

    One blady phrase to DESCRIBE the HDB and by extension the PAPigs Coverment : they are BOTH the Angel as well as the DEVIL! Suckers are the Buyers cum Dwellers of those BTO PONZI schemes of THINGY!

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  • CPFB making profit or not?:

    Don’t forget CPF.
    Is the CPF Board making profit from us?

    CPF/GOV the same situation as HDB/GOV. Gov makes multi-billion dollar profit from us EVERY YEAR.

    CPF/GOV make retirees poor.

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  • One million Dollar BTO:

    One Million Dollar BTO coming soon.
    If 5 room flats are build in popular mature estates, it will very soon appear.
    The biggest PONZI public housing using Acquired Land.
    Land Acquisition Act was enacted to help poorer citizens acquire housing.
    Do not let your next generations suffer in this Ponzi Scheme—more may migrate.
    Others will not be able to afford children.
    Papigs have really ”lost their ways” after the departure of Goh Keng Swee.
    ….Kuik Ah Han on the 2019 Singapore’s 50 Richest – Real estate magnate Kuik … Kuik’s daughter, Diana, is married to Ong Ye Kung, Singapore’s minister for …
    https://www.forbes.com/profile/kuik-ah-han/?sh=6b5154371b9c

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  • Breakdown:

    Should breakdown the cost of the HDB flats, including the land costs.
    Best not to lump the costs of the land to the flats selling price as the land does not belong to the HDB owners. This will lower the HDB flats price and make it more affordable for the next generation.
    Singapore will not be able to support ever increasing HDB prices…not sustainable.The world is getting more competetive.

    Best to set a unit to bear all the land costs and let it have the right to sell/tender some of the the expired flat land to private developers to raise the funds needed.

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  • myfirstscrew:

    When they selling at $400k, they said the lost money, now they sell near $1M, they also losing money.

    The land cost is controlled and regulated by them, they can always manipulate the cost and tell us they are always losing money.

    This is a govt not transparent for all things, from our investment, CPF to Medical to HDB, they have never been.

    If HDB is losing money, why are the staffs getting so many months of bonuses? Which entity gives such huge bonuses to staffs?

    Tech: Bingo, now you know why they pay themselves MILLIONS?

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  • Dusk:

    There’s a saying,” cobra itself doesn’t know itself is poisonous!”

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  • MarBowling:

    myfirstscrew:
    September 15, 2022 at 11:38 am (Quote)
    When they selling at $400k, they said the lost money, now they sell near $1M, they also losing money.

    Response: The Mother of all Housing PONZI schemes of things started when Lee Kayu appointed his protege cum bluest-eyed boy ex World Class Minister Marbok Tan as the Housing Minister, period. This Shortarse MF subsequently proceeded to announce thereafter that HDB has suffered an annual DEFICIT of $2billions BY SELLING THOSE “HEAVILY SUBSIDIZED” HDB Flats to the people! This MF is therefore telling us that the more HDB flats that are putting out for sale, the MORE HDB and by extension the farking Coverment would suffer MORE HUGE DEFICIT!

    It seems that in SinKapore, EVERY MINISTRY IS MAKING and EARNING HUGE AMOUNT OF REVENUE EXCEPT the pathetic HDB under the MND! The Big Q therefore is WHY THE PAPIGS COVERMENT To date haven’t APPOINT A COMPETENT Minister to HELM HDB so that instead of Perpetual ANNUAL DEFICIT, he or she will be able to ensure SOME SORT Of PROFITABILITY FOR THIS PATHETIC ORGANIZATION!

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  • theforgottongeneration:

    I have been highlighting that the gov. announcing that HDB prices have been “increasing” since 3Q-4Q2021. This could be partly due to be the high proportion of 2017 (in 2021) and 2018 (in 2022) flats allowed for resale despite barely meeting the 5-year MOP requirement. As everyone knows, newer resale flats normally fetch higher prices – so having influx of super-new flats will jack up the overall market picture.

    Tracking the trend using AMK 5-Rm flats, August 2022 has ZERO 2018 flats on resale (Hungry ghost month?). The overall price is observed to drop about 10-11% over July, June and May periods (all which have 2018 flats resales).

    Is the HDB, in cahoots with the property agents, artificially painting a more rosy picture than actual? Why the sudden burst of 2017-2018 flats are allowed for resale without meeting the MOP?

    Monitoring to see if the coming months this year will have 2018 flats on resale. If this suddenly tapered off, then apparently someone is playing the market, hor? HDB/MND acting blur or truly sotong?

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  • theforgottongeneration:
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  • xoxo:

    As an aside,Sg is the WORLD’S THIRD HIGHEST RANKED IN TERMS OF POPULATION DENSITY,higher than even HK.
    Switzerland is way below at 59.
    Swiss Standard,anyone?

    Still,the govt is,about to DUMP MORE ALIENS here into cramped-up Little Red Hot Dot!
    ONE PASS means Tom,Dick and HAIRY can bring his daddy,mummy n puppy here to jostle with us.
    Already,many sgs are becoming not just *jobless(unemployed ,self-employed,UNDER-employed) but also HOMELESS as prices of HDBs keep sky-rocketting.

    Cramping up THIS LITTLE RED DOT also means more social problems that come from joblessness and over-crowding plus FASTERER SPREAD OF FUTURE PANDEMICS N OTHER DILIBITATING DISEASES such as TB.

    ORDINARY sgs will be the ones on the receiving end as they are the most *affected*.

    What SWISS STANDARDS ?
    Probably see more *REFUGEE CAMP* standard instead!⅖

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  • Use your brain cells & think:

    More diseases too previously unseen in our once clean and green city, are creeping in with this sgov’s open leg immigration policies.
    Covid, now monkey pox..19 cases so far 99% are imported…
    Our country is no longer safe, in more ways than just security wise, despite what the ministars tell us..
    Whenever they want to remind us theyre doing a “good job” they scare us reminding us our sg is still open to terrorist attacks.. eg “not if , but when”!
    So who’s fault is it?
    Heaven only knows what else theyre hiding from us..
    All govs lie !

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  • Loh KK:

    The government is very clever at playing with semantics and creative accounting.

    We all do not believe what the minister of national development is claiming and we are generally cynical about any and all claims by the government.

    We can only put our voice in our vote during elections. We should let the PAP hear what we have to say come 2025.

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