Pricing of new HDB flats
March 2nd, 2023 | 
Author: 
1. Many young people find the prices of new flats (aka BTO flats) to be too high and unaffordable. The general public has asked the government to use a lower land value, so that the flats can be sold more at a lower price.
2. The government is unwilling to use a lower land value, as a drop in the prices of HDB flats will be bad for existing owners, especially those who bought the flats recently at higher prices.
3. I suggest the following approach to deal with this issue:
The government should price the new flats at the level that existing in 2019, i.e. before the pandemic.
The increase in HDB prices in the recent years is due to the shortage of supply of new flats caused by the stoppage of construction during the pandemic. This supply shortage caused the prices of property to increase sharply. This increase can be considered to be temporary.
The government has already given orders to build 150,000 new flats over the next three years. This increased supply can meet the new demand.
4. If the prices of new flats are kept at 2019 level, there will be increased demand, as they look attractive when compared to the increase in the resale prices of HDB flats.
Even if the demand is higher than the new flats under construction, the government has sufficiently vacant land to build more flats.
5. There is a risk that there will be an oversupply of new flats in the future, and some will not be sold and be left vacant.
If this situation should arise, the government can keep the flats vacant or rent them to tenants.
The vacant flats can be made available to new buyers, who will not have to wait for several years to get a flat.
Even if the flats are left vacant for a few years, the actual construction cost is not a large sum.
6. The prices of new flats in the future can be adjusted based on increase in the median wage level in the country.
This strategy is to fix the prices at an “affordable level” and use this price to influence the future property prices.
As the government is a large land owner with a large supply of vacant land, they can influence the property market by ensuring an adequate supply of new flats to meet future demand.
Under this strategy, the government will use the supply of new flats to influence the property prices, rather than allow the market price to determine the future prices of HDB flats.
7. I look forward to the day where there is a ready supply of vacant flats that buyers can buy and get the keys immediately. They should not have to wait several years for the flats to be ready.
Tan Kin Lian
Posted in 
“I look forward to the day where there is a ready supply of vacant flats that buyers can buy and get the keys immediately. They should not have to wait several years for the flats to be ready.”
There was a time when HDB flats were waiting for buyers
There truly was such a good time
Then that rambutan guy open the HDB market to PRs
Then that *** guy issue citizenship like toilet papers
So here we are with long years of queue.
TKL, don’t hope for miracle. The long queue is the intended outcome, not a problem to be solved.
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We are a smallish country.
Quite easy to determine demand and plan for adequate supply of flats without much complications.
Oversupply or Undersupply goes to show PEOPLE ARE SLEEPING ON THE JOB.
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I hate to repeat but reiteration is sometimes needed to wake people up.
Take FOOTWAYS THAT ARE NOW MARKED AS SHARED PATHS FOR PRDESTRIANS N CYCLISTS.
THIS DEMONSTRATES HAPHAZARD PLANNING N POLICY FORMULATION,NO MORE,NO LESS.
OUR GOVT AGENCIE$ ONLY BUSY COLLECTING MORE MONEY.
WRONG KPI APPLIED.
SERVICE LEVELS MUST SUPERCEDE BOTTOM-LINE$ FOR PUBLIC SERVICES,AM i right?
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it is not a good topic.
because.
if HDB is truly high for sinkies they would have voted for PSP WP since these two parties all say HDB prices are priced too high.
since sinkies continue to vote for pap, it can only mean sinkies think HDB prices are ok.
we cannot waste time on people who have no problems.
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In Sinkieland everyone is a millionaire, if not billion.
Are YOU?
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Go for another system.
2 PRs applicants queue up 1 year behind 1 PR and 1 local applicants.
1 PR 1 local applicants queue up behind 2 local applicants.
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The coffer is probably empty due to the massive losses everywhere including China, India and Russia.
Relentless push for maximum revenue from:
1. Forever increasing CPF shield and premium
2. BTO prices
3. Cost of living ie utility, rental, COE, food and services
4. Massive import and conversion of foreigners into PRs and new citizens to top up CPF and purchase resale and new BTOS
TKL must be dreaming.
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@”5. There is a risk that there will be an oversupply of new flats in the future, and some will not be sold and be left vacant.”
Mr Tan, in your previous post “Possible increase in population target”, you mentioned that:
” 6. It is possible that HDB is building for more foreigners to live in Singapore. We might be aiming to increase our population to 6.9 million, or even 10 million. This was planned in the past.”,
thus just wondering will there be an oversupply of new flats?
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They sell more flats now to make money as they know interest rate going up. People has to pay higher interest now for mortgage. They make HBD expensive to jack up land prices and make inflation to make money, GDP growth which could be link to their salaries. It is impossible ordinary people can win clever people working in governments who are selfish and greedy for high salaries. Clever people if given power by people may not serve people and could work for themselves. Vote wisely next time.
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Straits Times: Singapore dream turned sour: How upgrading and a culture of getting ahead became corrosive – Chua Mui Hoong, Associate Editor
LKY’s (and PAP’s) “pick the winner” policy has made everything, except local politics, very competitive. PAP has also brainwashed Singaporeans to be “pragmatic”. As a result, Singaporeans only look after themselves – zero “community spirit”.
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So you think Singaporeans have Zero “community spirit” ?
Ok.. then you be the first to show us that you have community spirit like our great PAP.
Oppie only know how to kpkb but no action.
Everyday kpkb FT degrees are fake.
But here is the opportunity for you and Oppie to prove yourselves to have the community spirit in helping Singaporeans like our great PAP.
Now Our great PAP help Singaporeans by passing the law that its is EMPLOYER responsibility to verify EP Pass Holder degree so that all Singaporeans can be like Professor Denis Peng, investigate EP pass holder (President Tsai) degree.
Singaporeans can now request EP holder to show their degree.
Singaporeans can now sue company HR if they failed to verify FT degree.
Will you Prabu, Wayang Party and Progress Singapore Party be the Denis Peng, He DeFeng and Hwan Lin of Singapore to uncover fake degree ?
https://www.youtube.com/watch?v=RWdixA2U76A&t=4611s
Now, over to you and Oppie. Show us your solution using our own way/standard.
Not Americunt/Chinacunt deceptive way.
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pricing of HDB flats also includes the hidden tax of enormous amount of a few hundred thousands. Suck it up an dmov eon
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dodo:
March 3, 2023 at 9:18 am (Quote)
Go for another system.
2 PRs applicants queue up 1 year behind 1 PR and 1 local applicants.
1 PR 1 local applicants queue up behind 2 local applicants.
PR CANNOT buy BTO flat. Only resale flat.
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How to have oversupply of flats? BTO means Build To Order.
If there is oversupply situation, that mean BTO is a failure.
BTO is designed to prevent oversupply.
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You are right, but the prices of BTO flats are market driven and the market includes resale flats. If PR want to have their cake, it’s easy by pledging their allegiance first to convert the citizenship. If they cannot even do this, we know where the allegiance lies.
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