Affordability of New HDB Flats

The following question stood in the name of Mr Gan Thiam Poh –

To ask the Minister for National Development (a) what has been the core and guiding principle in pricing new HDB flats to ensure the affordability of new HDB flats for Singaporeans; and (b) what can HDB do if the existing pricing policy is inadequate to ensure that HDB flats remain affordable for Singaporeans.

Madam, we build new flats to meet the housing needs of citizen families, especially those applying for HDB flats for the first time. Only citizen families are eligible to apply. They are heavily subsidised so that these families can afford them. This is to meet the strategic intent of helping Singaporean families own their homes.

The core principle for pricing these new flats follows from the strategic intent: their prices must be affordable for these families. In operationalising this principle, we set the price by taking into account the typical household income of these families, the market price of similar resale flats in the vicinity and the attributes of the flats, including their size and location. We apply a substantial price discount to ensure that the flats will be affordable. In addition, to give eligible first-time home buyers a leg-up, we provide them with significant housing grants of up to $60,000.

In this way, first-timers who buy new flats in non-mature estates will find them affordable. The quantum of the price discount and the size of the housing grants are within our control. By varying them, we ensure that we achieve the strategic intent of helping Singaporean families own their homes.

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Thank you, Mdm Speaker. If I heard correctly, the Minister mentioned just now that the resale price of the flats in the vicinity is taken into consideration. I thought the Minister mentioned recently that the price of the new BTO flats has just been delinked from the resale price. May I have a comment from the Minister, please?

Madam, the Member has not heard wrongly. Both statements are correct. We take into account the resale price and then we apply a discount. And we further give an extra grant. In recent months, when I say delink the new flat price from the resale price, the meaning of delinking is I vary the discounts so that the prices can remain steady.