Geylang HDB BTO: 23.5% price increase differential?

Photo: www.99.coPhoto: www.99.co

HDB BTO launch

I refer to the article “HDB launches 8,748 flats in May, including BTO flats in Woodlands, Yishun, Bidadari, Geylang” (Straits Times, May 18).

It states that “Prices range from $73,000 for a two-room flat in Woodlands to $489,000 for a four-room in Geylang.”

Cheapest 4-room in Geylang – $489,000?

According to the HDB’s web site – the price of the 4-room flats start from $489,000.

Cheapest 4-room in Geylang – $403,000 in Feb 2015?

The price of the 4-room flats in the Geylang BTO February 2015 was from $403,000.

21.3% increase?

This is an increase of about 21.3 per cent in about 27 months.

Price Index decreased 2.2%?

In contrast, the URA HDB Resale Price Index (RPI) decreased by about 2.2 per cent from 137.0 (4th quarter 2014) to 133.9 (first quarter 2017).

23.5% price differential?

So, why is it that the lowest priced 4-room flat in Geylang increased by a price differential of 23.5 per cent (21.3 + 2.2), relative to the RPI?

Leong Sze Hian

About the Author

Leong
Leong Sze Hian has served as 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), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.