Why does the Government still say that HDB flats are affordable, when some resale flats have been sold for close to $1 million?
You may have read recent reports about some resale HDB flats being sold at more than $900,000, along with concerns expressed by some that high Cash-Over-Valuation (COV) levels were pushing resale prices beyond the reach of many Singaporeans.
Such high resale prices are the exception rather than the norm. The overall Resale Price Index has shown signs of stabilising. The resale transactions highlighted in the media involved selected flats with highly desirable attributes, including the flat type, location, view, and internal decorations, which some buyers consider to be worth a premium price.
Resale flat prices are negotiated between willing buyers and sellers in the open market. Sellers will want to sell their flats at the highest price possible. Buyers should take a look at the transacted prices in the vicinity, consider the options available, and negotiate for a price that they can afford comfortably.
While HDB is not directly involved in the price negotiation process for resale flats, we help buyers make informed decisions by publishing up-to-date information on prices, as well as financing options on the HDB InfoWEB.
Prices in the public housing market have risen over the past few years, due to a strong economy, low interest rates, and high liquidity. Alongside the Government’s cooling measures, HDB has ramped up its building programme, offering more than 50,000 new flats in 2011 and 2012. HDB will keep up the pace in 2013 and offer another 25,000 new flats this year.
HDB has also stabilised prices of new BTO flats by de-linking them from the resale market. This means that new flats are priced considerably lower than comparable resale flats, keeping BTO prices steady even as resale prices go up. These new flats cover a diverse range of flat types (from 2-room flats to 5-room flats) in various estates, catering to families with different budgets.
In addition, various subsidies, grants and priority schemes are also available to first-timer Singapore citizen families to help them set up their homes. HDB remains committed to keeping public housing affordable and accessible for Singaporean families.
Find out more about the various grants and subsidies available to flat buyers on HDBSpeaks, or the HDB InfoWEB.