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Friday, December 11, 2020 – 12:09 pm
TO keep future HDB projects in prime locations affordable, the government may have to apply more subsidies in addition to those already provided to buyers of Build-To-Order (BTO) plans, said the Development Minister. National, Desmond Lee, in a Facebook post on Friday.
That said, there is also the “equity issue to consider when these additional subsidies add up to higher capital gains for buyers of such flats in prime locations,” he noted.
In addition to this, measures for upcoming new apartments in prime areas would have to balance several objectives, including preserving the character of public housing in these properties so that they remain inclusive over time, Lee said.
He added that his ministry has received many suggestions, such as the introduction of some restrictions on resale conditions for future projects in prime areas.
“There is a wide range of ideas that can be applied to these future flats under the new housing model, and the Ministry of National Development (MND) is carefully studying these various suggestions,” Lee said, adding that the ministry welcomes the ideas of the public.
In a recent interview with the Chinese daily Lianhe Zaobao, he shared plans on MND, including his plan to build public housing in new areas with “very important attributes, such as in the city center or along the southern coast,” Lee noted. in his Facebook post.
“A new housing model is needed for such areas, to ensure that these new public housing, regardless of location, remain affordable for ordinary Singaporeans as they will be much more expensive than current BTO flats …
“We will also introduce a wide range of apartment types, including two-bedroom Flexi apartments and rental housing where possible, to meet different needs and keep our public housing inclusive and diverse,” Lee said Friday.
The latest announcement by the minister comes after he previously recognized the “lottery effect” of HDB floors in major areas, which may result in a “likely windfall” for those who sell government-subsidized BTO floors in the market. resale.
Real estate analysts The Business Times spoke with suggested some measures to mitigate this effect, including a shorter lease, a longer minimum occupancy period, a sale to HDB, and taxes or levies.
But there are no simple answers, they added, as any measure would have broad implications. Furthermore, the HDB resale market could also affect the private real estate market and have other socio-economic implications.
Separately, according to data released Thursday by real estate portal SRX, the number of HDB resale flats sold for S $ 1 million or more has reached a new record, following 13 transactions in November 2020. The flats of 72 million dollars sold compares with 64 units of this type during all of last year.
SRX’s preliminary estimates for November also show that HDB’s resale prices increased for the fifth consecutive month, although the volume of transactions fell. At the higher end of HDB’s resale market, a five-bedroom unit at The Pinnacle @ Duxton sold for around S $ 1.25 million, which was the highest transaction price on record for a resale floor in November.
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