HDB BTO: Up 19.9% when price index down 9%?

November 17, 2015

Largest offering of HDB flats

I refer to the article “Bumper crop of 12,411 new HDB flats go on sale on Tuesday” (Straits Times, Nov 17).

The chart shows that the prices of 4-room BTO flats in Toa Payoh start from $433,000.

In the November 2012 Toa Payoh Crest BTO, 4-room prices were from $361,000.

http://esales.hdb.gov.sg/hdbvsf/eampu11p.nsf/0/12NOVBTO_page_8931/$file/12NOVBTO_about0.htm

BTO price increased 19.9%?

This is an increase of 19.9%.

But Resale Price Index decreased 9.0%?

The HDB Resale Price Index  has dropped by about 9.0% from 146.7 in the 4th quarter of 2012 to 134.6 in the 3rd quarter of 2015.

So, if the Resale Price Index dropped by 9.0%, why did the price increase by 19.9%?

How do we account for this apparent price differential of 28.9% (9.0 + 19.9)?

BTO prices delinked from resale prices?

It may be bad enough that in the past, we were told for years that HDB BTO prices were pegged to resale prices, and then recently that they have been delinked to make them more affordable – only now to appear as a if they may increase much more when resale prices dropped quite a lot in the same estate.

Transparency and accountability please?

Can we have more transparency and accountability as to how HDB flats’ prices are determined.

Land costs 60%?

Is it about 60% of the price is allocated to land costs?

HDB lose billions every year?

How much profits has the HDB been making all these years?

Govt not spending a single cent on HDB?

Is the Government still not spending a single cent on public housing (HDB) as it makes profits from the sale of HDB flats?

Reciprocate trust with more transparency?

Since the people have given their trust and mandate – shouldn’t we reciprocate by being more transparent?

We should also spend more to help Singaporeans.

Leong Sze Hian

 

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.