Khaw boon wan: We already subsidize bto flats a lot, resale flats cost 31% more

[Sammyboy RSS Feed]

An honorable member of the Coffee Shop Has Just Posted the Following:

KHAW BOON WAN: WE ALREADY SUBSIDIZE BTO FLATS A LOT, RESALE FLATS COST 31% MORE

.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;} Post date:
4 Nov 2014 - 9:31am








In response to a parliamentary question, Khaw Boon Wan explained that the government already subsidizes BTO flats a lot and he pointed out that in the suburbs, resale prices are about 31% higher than BTO flats.
He also emphasised that the difference is bigger now than in 2004 when it was only 18%.
Khaw also noted that private homes in the same areas at about 1.5 times more expensive than resale. This means that BTO flats are almost half the price of comparable private homes in the same area.
However, Minister Khaw also noted that we should be careful when interpreting and comparing HDB and private home prices as the classifications are very different.
For example, ‘Outside Central Region’ and ‘Rest of Central Region’ are terms used for private properties while HDB uses mature and non-mature estates. These two are not necessarily the same areas.
Khaw also said that HDB flats are quite standard and come in different sizes which will determine their rough value. For private properties, there is a large range of units with very different prices.
In any case, when looking at average prices, BTO flats are still considerably cheaper than resale and private.
In response to another question about the number of applicants who have been barred from the BTO exercises due to booking cancellations, Khaw explained that since 2012, there have been 3,500 people who have been barred for 1 year.






Khaw explained that this 1 year ban is put in place to discourage people from making bookings without a real intention to buy.
He explained that when people do this, it wastes admin resources and is unfair to genuine buyers who will have their own flat purchases delayed because of long queues.
While unclaimed flats are sold in subsequent balance of sale exercises, Khaw explained that this doesn’t immediately address the needs of genuine buyers who have missed out because of the delays involved.
"HDB prefers to accumulate its balance flats and sell them under a Sale of Balance Flats exercise when there is a sufficiently large supply. This allows applicants more choices of flat types in various locations."

Related:
Khaw Boon Wan: I Still Think Families Who Earn $1,000 Can Buy a Flat




Click here to view the whole thread at www.sammyboy.com.