Updated: 11/17/2012 01:07

Prices of BTO flats have largely stabilised especially in non-mature estates



Prices of BTO flats have largely stabilised especially in non-mature estates

National Development Minister Khaw Boon Wan says the prices of Build-To-Order or BTO flats have largely stabilised since May last year. 

Speaking in Parliament, Mr Khaw said this is especially the case for flats in non-mature estates. 

He said the overall BTO prices have increased by 12 percent since January 2009. 

This is despite a larger 34 percent increase in the HDB Resale Price Index (RPI) over the same period. 

Mr Khaw said when pricing HDB flats, buyers' affordability is fully considered.

He assured that BTO flats remain affordable, with first-timers buying flats in non-mature estates using about 23 percent of their monthly income to pay for their housing loans. 

Giving examples, he said a four room flat in Sengkang can range from $250,000 to $310,000. 

While a five-room flat ranges from $320,000 to $385,000. 

"Of course people would want even cheaper but looking at it from a situation that we are facing today, I find these figures very reasonable. So that is what we have been trying to do in the last few months, trying to stabilise these BTO prices, but over time, I hope that the resale pricing will become more moderate and then we can adjust our prices again. But for the moment, I would regard, the achievement that we're able to bring about this cost increase by 12 per cent versus the 34 per cent as quite an achievement. I think not enough credit has been given my ministry."

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