How does HDB prices it's apartments?
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"...Many modern HDB-dwelling Singaporeans are interested to know how much more they are paying above the cost price of their flats.
It is common knowledge that new HDB four- and five-room flats sell from $200,000 upwards. Why are Singaporeans paying so much more for their flats when the unit cost price hovers around only $50,000? This is despite the subsidies the housing authorities grant to public housing.
What are the additional costs HDB buyers are paying for? If the land cost is factored in to the final purchasing price, it implies the cost of the land is four to five times the construction cost. This does not make market sense.
Private developers' construction cost generally does not differ too much from the land cost. These developers bid for the land parcel competitively, hence we can assume they have paid the optimum price for their winning bid.
Let's take a typical low- to mid-range 99-year leasehold condominium for comparison. Winning bids for land parcels go at $150 to $250 psf. Construction cost hovers around $200 to $250 psf and the final price goes at about $400 to $550 psf after including allowance for profits and other miscellaneous costs such as legal fees and marketing.
Land for HDB flats is not bid for competitively and so the 'price' paid for it cannot possibly be four to five times the construction cost. This is an aberration when compared to the private market.
Can the HDB explain how its flats are priced? The huge difference between the selling price and the cost of construction is worrying. What else are we paying for?..." (QUOTE ST FORUM)
Must be pretty big margins, that's why HDB's untouchable S$14 billion dollars profits stashed neatly in Government's treasure chest. -
HDB will never ans such thing face on. It will go one round and a half turn than back to the same, nothing been ans in the past and now better still they had privatise already, what will the ans be hahahaha....
some one posted b4 they need to pay what some directors director fees now. -
How does HDB prices it's apartments?
That depends on the amount of bonus they are targeting that year.