Garmen say selling HDB at LOSS to PEANUTS...YOU BELIEVE?

[Tigershark1976]

So this guy is saying, using a flat with 17 floors and 8 units on average per floor as example.

 

$300,000 * 17 * 8 = $40.8m

 

Can someone who is familiar in building costing gives their opinion if this is a true reflection based on current markets material costs?

 

Is it then a problem with the tendering process where MND could have been chopped carrot and paying out extras and passing these burdens to future flat owners?

 

 

what to do? they say and we have to believe lo.. if everyone in the parliment can calculate like u do, a lot of the MP loss their ricebowl liao... how can a 17 storey cost 40 over millions??? even a sec student also can tell...

[Vroomtattat]

WHEN pricing an HDB flat, costs are not taken into account. Its price is based on what the flat is worth at the point of purchase.

Calling it a market-based approach, National Development Minister Mah Bow Tan said it was the fairest way of pricing new flats.

 

'It reflects what the flat is worth at the point of purchase, which may have no relation to what it cost to build,' he added.

 

Mr Mah gave this response in Parliament yesterday to Mr Liang Eng Hwa (Holland-Bukit Panjang GRC) who had asked if the Government would consider pricing flats according to costs.

 

The minister also said that as the HDB did not take into account costs, its building programme suffered losses of $530 million a year over the last three years.

 

Mr Mah said a typical four-room flat in Sengkang costs more than $300,000 to build. This is above the $200,000 to $260,000 price at which HDB sells it.

 

He noted that there were concerns over the high prices of premium flats like the Pinnacle@Duxton, with prices ranging from $457,000 to $645,000.

 

But the prices reflected the value of the flats, which are located in Tanjong Pagar. For every one unit on sale, seven people want to buy it, said Mr Mah.

 

It shows people are willing to pay for flats with good value, he added.

 

http://www.straitstimes.com/Breaking+News/...ory_303979.html

 

HOW COULD THAT BE!! TELLING LIES WITH GUSTO GOOOD!!

 

When I did renovations to my flat, found that the walls around the door frames are HOLLOW and STUFFED with NEWSPAPERS from the year 1984!! WTH!!! Lucky my block of flats did not collapse like a deck of cards!!

[Melissa]

Wowwww....

 

Which area is your flat at??

[Vroomtattat]

Bukit Buttock, erm Batok

[Sabian]

When Pinnochio tells a lie every time, his nose gets longer.

 

When Mabok does the same, his height becomes shorter.

 

We have really a unique county. We actually paid people millions of dollars to bull-sh*t to us. [shakehead]

 

His height get shorter? He all along this katek height.

 

Maybe somewhere else is getting shorter?

[Kelpie]

Quoted"

'It reflects what the flat is worth at the point of purchase, which may have no relation to what it cost to build"

 

How expensive it can be to build? So many flats are build altogether, the cost should be much much cheaper than the selling price to us.

 

Big profit for them

 

Alot of it is due to market mechanism at play. There is no way for them to sell too low now, it will have an impact on the resales market. There are many HDB residents who are the 2nd or even the 3rd owner and some paid through their noses to get their resales flat. It is not uncommon to see subsequent owners paying double the original price that the 1st owner has initially paid.

 

If HDB is going sell very cheap new HDB, it will probably have an impact on these resales flat owners, if many default on payments, it will create a "sub-prime" problem for the country. The impact would be unimaginable.

 

Regards,

[Schneider79]

Why not we get the contractor do a national audit based on their profit per project ?

[Tkseah]

if hdb is making loss.. it is becos of their overly fat pay packages and excess number of staff who dun do much..

 

private contractors operates much more efficiently...

[Speedsun]

Damn it! Pay him so much, still dare to announce HDB is making losses, must sack him immediately.

Edited November 19, 2008 by Speedsun

[Yaloryalor]

If the new flat selling cheaper then the resale market price will be lower as well. It whether how much they wanna earn from the ppl.

 

I tot HDB suppose to be affordable to most ppl?

[Kelpie]

If the new flat selling cheaper then the resale market price will be lower as well. It whether how much they wanna earn from the ppl.

 

I tot HDB suppose to be affordable to most ppl?

 

IMHO, HDB culture is part of our social engineering lah. In fact, you can look at it this way, all are winners in term of paper assets. But the new couples will eventually find it more difficult to buy houses at low price.

 

I doubt they foresee that HDB prices would sky rocket to current level when they 1st started building flats that are as low as less than S$10K per unit and that was barely 30~40 years ago? So, it is not wrong for them to tell you that your asset has appreciated many times as long they're in power.

 

If HDB started selling flat at "true" cost, it will sure create havoc and you will see people jumping from flats the next moment .

 

Regards,

[Scion]

if any opp takes over the parliament, the first one to go is this farker...

pappy number one bullsh|tter

Edited November 19, 2008 by Scion

[Mcfguy]

So this guy is saying, using a flat with 17 floors and 8 units on average per floor as example.

 

$300,000 * 17 * 8 = $40.8m

 

Can someone who is familiar in building costing gives their opinion if this is a true reflection based on current markets material costs?

 

Is it then a problem with the tendering process where MND could have been chopped carrot and paying out extras and passing these burdens to future flat owners?

 

er ... I thought I read he said a 4 room flat cost $300000...maybe he meant the whole flat and not a unit...playing with words to confuse ppl

[Ahsiong]

all bxxxxxxt then why they build for what....Anything LOSS money you think garment will want to do it ..

 

ya loh....the gahman will not do anything which will result in a loss for them...

[Anavar]

hahahahaha, how about these stories..gst to help the poor.got bull sxxt or not..erp to help business in cbd areas.hohoohoh.

[Tanlee]

believe that "mah" guy, over my dead body...

 

the question is does that 66% of the pro-PAP singaporean believe?... that matter most...

 

i have known such singaporean... and they are really contented with PAP and life... it is surprising how they are willing to close their mind to the reality...

[Damienic]

LIKE REAL!! they made dunno how much money during the ppty boom by marking up their prices by over 100K compared to 2006 prices and they dare to say sell at loss?? wat a cork and bull story..

[Tarzan666]

most sporeans like dat la..

 

They fear their investment value will drop if 1 day an entirely new govt take over..

juz imagine marine parade taken over by workers party.wahhh..