Finally an article to show the exact actual figures and stats.
Construction costs of public housing are deliberately omitted out in every price list of the HDB’s latest Build-to-order (BTO) flats. Like the cooling off day and all other weird PAP practices, the reason is again political. Imagine how ugly the PAP will look if Singaporeans know how much profits a publicly funded statutory board like the HDB is profiting off a 25 year long mortgage debt of ordinary citizens with one of the lowest domestic purchasing power among developed countries [Source]. Then again, just look at how benevolent and generous PAP is with their HDB grants when construction costs are disregarded and the market price benchmark is adopted instead. It is no wonder the PAP can claim that HDB is bleeding so much that they are $1 Billion poorer every year from “helping” Singaporeans [Source].
Leaving the topic of poor domestic purchasing power for another day, the focus is of this article is to provide a close estimate of how much profits HDB is earning per unit flat.
Let’s take the March 2013 BTO exercise as an example:
|Project||Flat Type||Selling Price|
(inclusive of Grants)
|Compassvale Cape||Studio Apartment||From $88,000||-|
|3-room||From $189,000||From $159,000|
|4-room||From $284,000||From $269,000|
|5-room||From $365,000||From $355,000|
|Compassvale Helm||Studio Apartment||From $88,000||-|
|4-room||From $304,000||From $289,000|
|5-room||From $372,000||From $362,000|
|Matilda Portico||4-room||From $294,000||From $279,000|
|5-room||From $363,000||From $353,000|
|SkyPeak @ Bukit Batok||2-room||From $117,000||From $57,000|
|3-room||From $209,000||From $174,000|
|4-room||From $294,000||From $279,000|
|5-room||From $411,000||From $401,000|
Below are the construction costs of these BTO flats in Singapore dollars using an international project management company Turner and Townsend’s cost estimation [Source]:
2 room HDB flats – 45 sqm – $67,500
3 room HDB flats – 60 sqm – $90,000
4 room HDB flats – 90 sqm – $135,000
5 room HDB flats – 110 sqm – $165,000
With prices less than half of HDB’s selling prices without grants, how much profits do you think the HDB is making even after throwing in a $30,000 grant? Don’t you think Singaporeans could have more access to affordable housing by shutting down the inefficient HDB stat board and pass all construction of “affordable” quality type of housing to the private sector instead?
TRS Media Partner
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