Design, Build and Sell Scheme (DBSS) flats have been attracting such strong interest that they now cost nearly as much as executive condominium (EC) units.
Their overall median price is only $100 to $150 per sq ft (psf) lower than that of the condo units.
The scheme's popularity comes despite the fact that it is under review, following an outcry when Centrale 8 in Tampines made the news for its high asking prices in July.
The high demand was due mainly to the fact that the projects are located in mature estates, near MRT stations.
Prices for Trivelis, the latest DBSS launch in Clementi, were about $580 psf to $728 psf. The cost of new EC flats ranges from $501 psf to $820 psf, according to data from sources such as the Housing Board and Urban Redevelopment Authority.
DBSS properties were attractive also because, unlike resale flats, they require no cash over valuation (COV), the premium paid over and above the official value.
The cash down payment for a DBSS unit can be lower than the COV for a resale flat, making it more attractive. Although buyers have to wait for it to be constructed, they are also getting a brand new flat in the process.
DBSS has an inherent inflation mechanism as the tender goes to the highest bidder, which in turn sets the maximum price that the market can bear. This encourages a rise in prices.
Source: The Straits Times – 8 November 2011
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