Monday, December 14, 2009

Higher prices for Pinnacle reflect strong demand: MM

Young couples will get govt aid in fulfilling dream of home ownership

THE higher prices for The Pinnacle@Duxton during its second launch were a function of strong demand for the units, Minister Mentor Lee Kuan Yew said yesterday.

‘Even though prices of the flats at the second launch in 2008 were higher, the demand for the flats was still very strong. The higher prices reflect the demand for the flats; they reflect the market demand,’ said Mr Lee during his speech at the key handover ceremony for The Pinnacle@Duxton.

The 50-storey Pinnacle@Duxton was first launched in May 2004. Some of the remaining units were re-launched in September 2008.

Then, 111 five-room flats were put up for sale at $545,000 to $645,800. Even then, there were 372 applicants.

When the project was first launched in 2004, in a lukewarm property market, four-room flats started at $289,200 while five-room flats were offered for up to $439,400.

Mr Lee also emphasised the importance of pricing Housing and Development Board (HDB) flats differently to reflect their true values.

‘We cannot price a new flat in Punggol or Tanjong Pagar the same because when they are re-sold, we know there will be a tremendous difference in price,’ he said.

‘From the 1980s, we moved towards a market-based system. By liberalising the resale market and allowing HDB prices to move in tandem with the economy, we unlocked the value of HDB flats to allow citizens to share in the fruits of the nation’s growth. Home ownership of a HDB flat is a store of value that can be monetised when need be.’

Even so, Mr Lee warned against flipping HDB flats for a quick profit.

‘The rules on minimum occupation and requirement for family nucleus are to discourage speculative purchases. We expect flats will continue to appreciate as long as we develop and grow our economy.’

In response to the possibility of young couples lamenting rising property prices, Mr Lee said: ‘Well, they have got to decide if the country is going to go up or go down. If the country is going to go down, then the economy will go down and their incomes will be down – unemployment will go up and property values will come down.

‘If they have confidence in Singapore, in working with the government, then it must go up as it has gone up every year since 1959 or since 1965.’

Mr Lee also made it clear that young couples will receive government assistance in fulfilling their dream of home ownership.

‘Young couples will receive sufficient help from the government to own their first flats. HDB will continue to build affordable homes of good quality, so that each generation of Singaporeans will continue to have a stake in the nation.’

The Pinnacle@Duxton development, which is the island’s tallest public housing development, features 12 sky bridges that link all seven of the blocks.

The sky bridges will be accessible from Jan 1.

The 26th storey sky bridge will be exclusive to residents who will also have access to the 50th storey sky bridge.

The public will have to pay $5 by EZ-Link or Cepas-compliant cards to access the 50th-storey sky bridge.

The development also includes amenities such as a food court, childcare centre, basketball court and an 800-metre jogging track.

In total, The Pinnacle@Duxton houses 1,848 flats.

Construction has since been completed, with the exception of some minor site works, such as landscaping.

Source : Business Times – 14 Dec 2009

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