80% increase in HDB price between sale launches?

Ho HW –

Why has there been an 80% rise in HDB flat pricing between two sale launches (direct from HDB) of Havelock View? The construction costs are the same, and the flats get handed over at the same time.

At the first sale launch during SERS (2006/07), a 4-room flat cost an average of $250k (inclusive of compensation). At the 2nd sale launch during the Balance of Sale balloting exercise (2009), a 4-room flat was going at an average of $450k. The 3-room flats also had an 80% raise in price.

Some may conclude that SERS projects get a special price, thus the big difference, but I would like to add that my friend got his Membina Court flat direct from HDB at a neighbouring estate in 2006/07 (not from SERs) at $270k for a mid-floor unit. It had the same price hike in the subsequent Balance of Sales launch direct from HDB and I do not think that Membina Court is a SERS project.

Why has the government/HDB allowed such sudden rises in pricing for its housing?

The government has made it look like a good buy, as the balloted flats seem slightly cheaper than the resale market. But the resale market valuation has been jacked up too! Why should HDB flats direct from HDB be pegged to market resale price in the first place? These are not private flats.

Where is the initial commitment to provide affordable housing for Singaporeans?

Every Singaporean is given a chance to purchase a HDB-subsidized flat from the government. So why the 80% raise in pricing?

Did the government/HDB suddenly realize that they have been missing out on reaping profits from good locations like Havelock View? Is that why they raised the price of HDB flats by 80% at one go, instead of a more gradual raise?

Are there not lucrative proceeds from the Zion Road land sale by relocating the residents to Havelock View? Is that not enough?

Can the 80% raise in HDB pricing for flats direct from HDB be justified when the flats are in the same estate, have same construction cost and are handed over at the same time?

A 20-30% rise perhaps within 2 to 3 years for a flat direct from HDB may have been more reasonable or justifiable if HDB flats cannot be pegged to our national inflation rates. Our wages have not increased by 80% in 2 to 3 years time.

The prospects of paying $200k more over 30 years than your neighbours who got same the flats at the same time as you is rather daunting, especially when it is NOT A RESALE FLAT but flats direct from HDB amidst periods of such economic uncertainty.

The Government needs to justify the ridiculous price hike. If not, they should be reviewing the price of the Havelock View balloted flats or do something at least.

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