Computation of Land Cost in Sale Price of New HDB Flats

Debated in Parliament on 19 Nov 2018.

Summary written by AI (learn more)

Lawrence Wong explained that new HDB flats are priced to be affordable, with monthly instalments for first-timer families in non-mature estates often below a quarter of their income.
The sale prices of new HDB flats do not cover full development costs, including land and construction, leading to annual deficits for HDB.
HDB provides housing grants of up to $80,000 to further support lower- and middle-income families purchasing their first home.
The land cost included in the sale price is part of the overall development costs that HDB absorbs, contributing to the subsidised pricing of new flats.
The pricing approach ensures public housing remains accessible, with the government covering the shortfall to maintain affordability.

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Full Transcript

Muhamad Faisal Bin Abdul Manap

Mr Muhamad Faisal Bin Abdul Manap asked the Minister for National Development how is the land cost amount which is included in the sale price of a new HDB flat tabulated.

Lawrence Wong

The key consideration in the pricing of Housing and Development Board (HDB) flats is to keep public housing affordable. That is why new HDB flats are priced substantially below the prices of comparable resale flats. In particular, the average monthly instalment to income ratio for first-timer families buying new flats in non-mature estates is less than a quarter of applicants’ monthly income. This means that home buyers will require little or no cash outlay.

The selling prices set by HDB for new flats cannot cover their development costs, which include construction and land costs. That is why HDB incurs significant deficits every year in its home ownership programme.

On top of the subsidised selling price, HDB also provides housing grants of up to $80,000 to give more help to lower- and middle-income families buying their first home.

Summary written by AI (learn more)

Lawrence Wong explained that new HDB flats are priced to be affordable, with monthly instalments for first-timer families in non-mature estates often below a quarter of their income.
The sale prices of new HDB flats do not cover full development costs, including land and construction, leading to annual deficits for HDB.
HDB provides housing grants of up to $80,000 to further support lower- and middle-income families purchasing their first home.
The land cost included in the sale price is part of the overall development costs that HDB absorbs, contributing to the subsidised pricing of new flats.
The pricing approach ensures public housing remains accessible, with the government covering the shortfall to maintain affordability.

Questions identified by AI (learn more)

Computation of Land Cost in Sale Price of New HDB Flats | PAPERCUTS

Computation of Land Cost in Sale Price of New HDB Flats

Debated in Parliament on 19 Nov 2018.

Summary written by AI (learn more)

Lawrence Wong explained that new HDB flats are priced to be affordable, with monthly instalments for first-timer families in non-mature estates often below a quarter of their income.
The sale prices of new HDB flats do not cover full development costs, including land and construction, leading to annual deficits for HDB.
HDB provides housing grants of up to $80,000 to further support lower- and middle-income families purchasing their first home.
The land cost included in the sale price is part of the overall development costs that HDB absorbs, contributing to the subsidised pricing of new flats.
The pricing approach ensures public housing remains accessible, with the government covering the shortfall to maintain affordability.

Questions identified by AI (learn more)

Full Transcript

Muhamad Faisal Bin Abdul Manap

Mr Muhamad Faisal Bin Abdul Manap asked the Minister for National Development how is the land cost amount which is included in the sale price of a new HDB flat tabulated.

Lawrence Wong

On top of the subsidised selling price, HDB also provides housing grants of up to $80,000 to give more help to lower- and middle-income families buying their first home.

Summary written by AI (learn more)

Lawrence Wong explained that new HDB flats are priced to be affordable, with monthly instalments for first-timer families in non-mature estates often below a quarter of their income.
The sale prices of new HDB flats do not cover full development costs, including land and construction, leading to annual deficits for HDB.
HDB provides housing grants of up to $80,000 to further support lower- and middle-income families purchasing their first home.
The land cost included in the sale price is part of the overall development costs that HDB absorbs, contributing to the subsidised pricing of new flats.
The pricing approach ensures public housing remains accessible, with the government covering the shortfall to maintain affordability.

Questions identified by AI (learn more)

Computation of Land Cost in Sale Price of New HDB Flats

Summary

Questions Identified

Full Transcript

Muhamad Faisal Bin Abdul Manap

Lawrence Wong

Summary

Questions Identified

Computation of Land Cost in Sale Price of New HDB Flats

Summary

Questions Identified

Full Transcript

Muhamad Faisal Bin Abdul Manap

Lawrence Wong

Summary

Questions Identified