HDB BTO price increase 14%, but resale dropped 5%?

July 20, 2014

4-room BTO flat price increased 14.4%?

HDB has just launched BTO flats in the mature estate of Toa Payoh, with 4 – room prices starring from $413,000.

http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/B14702B33C6CFD2E48257D190030132E?OpenDocument

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

This is an increase of 14.4%.

But Resale Price Index decreased 5.1%?

The HDB Resale Price Index http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatResaleIndex?OpenDocument

has dropped by about 5.1% from 206.6 in the 2nd quarter of 2013 to 196.0 (2nd quarter 2014), and about 3.4% from 202.9 to 196.0 from the 4th quarter of 2012 to the 2nd quarter of 2014.

So, if the Resale Price Index dropped by 3.4%, why did the price increase by 14.4%?

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 – only now to appear as a if they 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?

S Y Lee and Leong Sze Hian

P.S. Come with your family and friends to the 3rd Return Our CPF – HDB protest on 23 August 4 pm to 6.30 pm at Speakers’ Corner https://www.facebook.com/events/648543138548193/

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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.