Core principle of pricing new flats — affordability: Khaw

SINGAPORE: National Development Minister Khaw Boon Wan said the core principle behind the pricing of new HDB flats remains affordability.

Replying to questions in Parliament on Tuesday, he said the prices of new HDB flats are set based on the typical household income of families, the market price of similar resale flats in the vicinity, and the flat size and location.

Mr Khaw said HDB applies a substantial price discount to ensure that the new flats will be affordable and to give eligible first—time home buyers a leg up, the government provides them with significant housing grants of up to S$60,000.

He said in this way first—timers who buy new flats in non—mature estates will find them affordable.

MP for Nee Soon GRC Lee Bee Wah asked in Parliament: "If I heard correctly just now, minister mentioned that the resale price of the flats in the vicinity is taken into consideration. I thought recently minister mentioned the price of new BTO flat has just been de—linked from the resale price?"

Mr Khaw said: "The member has not heard wrongly. Both statements are correct. We take into account those factors, and we apply a discount, and then further we give extra grants to the members. But in recent months because when I de—linked — the meaning of de—linking means, I vary the discounts, so that the prices can maintain, steady."