The launch of the 888-unit Design, Build and Sell Scheme (DBSS) project Trivelis in Clementi yesterday saw crowds thronging its showroom, with more than 500 applications received on the first day - the third consecutive DBSS project to receive good responses since the public outcry over the prices of Centrale 8 in June.
The Government is reviewing the scheme after the outcry over Centrale 8, which led to the developer lowering the prices. To date, Centrale 8 sold only 40 per cent of its 708 units - a figure that did not impress analysts then.
But does the strong demand for subsequent DBSS projects make a case for the scheme to remain?
Although DBSS flats come with a premium ... if people have no issue paying for it and there's a good demand for DBSS flats, it may not hurt to keep the scheme. The Housing Board (HDB) gets to put new flats out and the flats are done by private developers - it's a win-win situation.
However, some analysts think that the scheme should be scrapped as HDB plays the role of providing affordable housing to Singaporeans. But when the flats are built by a private developer, the developer pays a premium for the land and they will also sell it for a profit.
At the end of the day, a DBSS flat is still a HDB flat and when it is priced so high and nearing the prices of executive condominiums … how much can the value of the DBSS flat increase in terms of capital appreciation.
Showroom visitor Chen Ming Feng, 38, said: "The location is good but the flats are a bit small ... the prices are also a bit expensive but I think it is reasonable as it is still cheaper than the resale prices in Clementi."
Source: TODAY – 27 October 2011
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