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SINGAPORE: Market values of new built-to-order (BTO) flats are determined by prices of nearby comparable resale flats, individual attributes of the flat and prevailing market conditions, said National Development Minister Desmond Lee. , in Parliament on Wednesday (October 14).
Thereafter, a subsidy is applied to ensure the floors are priced “significantly discounted” in the market, he said, adding that the approach is similar for BTO floors in mature and immature properties.
Mr Lee was responding to a question from the Popular Action Party (PAP) Member of Parliament (MP) Gan Thiam Poh about the pricing policy for BTO flats.
“In addition to the subsidized price, HDB (Housing and Development Board) also offers first-time home buyers the CPF Enhanced Housing Grant (EHG) of up to $ 80,000, to further assist low- to middle-income households. buying their first home, ”said Mr. Lee.
HDB introduced the EHG, which does not restrict buyers’ choice of floor type and location, last year.
With all of these “significant subsidies” keeping the flats “affordable,” HDB BTO’s flat prices remain at about five times the median annual household income or less, Lee said, noting that the ratio can be nearly 10 or 20. times higher in other major cities in the world.
“The vast majority of first-time families can buy BTO flats on immature farms and pay their monthly mortgage payments using CPF, with little or no cash outlay.”
While several resale floors have transacted at prices of more than a million dollars, these transactions are a “small minority” and represent less than 0.3 percent of total resale transactions this year, or 38 of the more than 14,400 resale transactions so far this year. , he said.
