The Housing and Development Board HDB said on Wednesday that it was a national priority to keep public housing affordable so that Singaporeans can own their homes. The Housing Board said this in response to questions on how Build-to-OrBTO flat prices are determined, and their development costs.
HDB said in a statement issued to the media that it prices flats with affordability in mind, which is unlike the private sector, which is profit-driven.
We do not apply a profit margin on costs. HDB said that to determine housing affordability, we look at the buyers' household incomes and the selling prices of flats on offer.
The pricing process has long been established, but questions have been raised recently about the continued affordability of HDB BTO flats as prices of new launches hit new highs. Five-room and larger new flats for Central Weave AMK, which was launched in August, started at more than S $700,000 and some topped S $800,000.
HDB said that in pricing the new BTO flats, it first establishes the market value of the flats by considering the prices of comparable resale flats nearby.
This is influenced by the prevailing market conditions, as well as the individual attributes of the flats. These attributes can include location, floor height, tenure, flat features and the amenities nearby.