Source : Sunday Times - 5 Apr 2009
We refer to Mr Donny Teo’s letter, ‘Link new HDB flat prices to pay too’ (March 15).
We would like to inform Mr Teo that the HDB already factors in household incomes in its pricing policies. For example, the generous housing subsidies are pegged to income. The Central Provident Fund Housing Grant and subsidised new flats are limited to those with monthly household incomes of up to $8,000.
The Additional Housing Grant of up to $40,000 is given only to those earning less than $5,000 a month, with the lower-income receiving higher amounts.
Mr Teo also suggested that HDB should anticipate future property market trends in pricing new flats. Property prices are influenced by many factors. Hence, it is not possible to predict future prices with certainty.
HDB does not raise flat prices in anticipation of future increases, nor reduce prices in anticipation of future decreases. Rather, it sets prices of flats based on the current transacted prices, with a discount which is the generous subsidy that flat buyers enjoy. As a result, the prices of new HDB flats are much lower than the prevailing market prices of comparable resale flats. We thank the writer for his feedback.
Ignatius Lourdesamy
Deputy Director
Marketing & Projects
Housing & Development Board
No comments:
Post a Comment