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

Puffer_fish

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Rayleigh

Rayleigh

6th Gear
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

 

So now he (MBT) admits that new HDB flats are now based on Market-Based approach instead of subsidy pricing. [sweatdrop] Perhaps he would like to elaborate how market-based pricing is still affordable? Even now ulu areas like Jurong West extension, resale 5 room flats are going for approx 400k and 4 room flats are selling like 300k on market value [knife] . How can HDB sells flats at market-based pricing and still make such a big loss (only discounted 20% of market price leh)? [hur] Perhaps he would like to be more transparent and show the citizens of singapore on the balance sheet on the cost and revenue of building the HDB flats? How about the season car-park revenue that HDB receives? Seems like a lot of "holes" in his statement [:|]

 

You have to read clearly regarding the losses, there are no holes in his statement. He specifically said building programme suffered losses of $530million, he did not say it is an overall loss. Check out what exactly is building programme, how is the $530 million broken down and benchmarked. He may very well be benchmarking the sale of the new flats versus resale flats, so definately it is losses all the way because they ARE SUPPOSED to sell below market price (resale price).

 

I second that. It is like the subsidize petrol in Malaysia. Malaysia is a net exporter for oil. The loss due to the subsidie is the potential loss in profit (if the oil is to be sold at unsubsidize price) and not the actual loss (like our ever in red "world largest semiconductor foundry"). Isn't English wonderful!!! Wonder what is the criteria to be a minister. [sly][sly][sly]

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Sturtles

Sturtles

6th Gear
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

 

 

The crux of the matter is, they price the land at too high a value, hence HDB makes paper loss. It is such a sad day to have singers mislead by the very members they voted in. Chicken and egg though.

 

So do we deserve it?

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Eacs

Eacs

Neutral Newbie

are you guys forgetting something here?

 

did any1 mentioned about the 2.6% "subsidise" interest rate from HDB?

 

do the maths.

 

when you take a 80% loan for 30 years,how much would you be paying for the hdb flat after the terms? [smallcry][hur][sweatdrop][smallcry][hur][sweatdrop]

 

so whts the answer?simple rite............ [thumbsdown][thumbsdown]

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Relaxed33

Relaxed33

Neutral Newbie
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.

 

I thought Mxx Bao Tan (sure earn in hokkien) [laugh] but he admits that HDB suffered losses of $530 million a year over the last 3 years (Mxx Bo Tan or Mxx never earn). [bigcry] Why like that? [furious]

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Scoots

Scoots

3rd Gear
(edited)
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.

 

Anyone collecting a car this week can just pay $2 for the COE huh? Afterall, it's what it's "worth at the point of purchase"

 

Does he think that we really believe HDB does not do any maths when they build flats? Can ANY organisation undertake a venture without assessing the costs involved?

 

And IF I were to believe that statement, I'll actually be more horrified that that's how HDB works.

 

So the question to ask is: Is he trying to make us believe a stupid excuse or is he trying to convince us that they are stupid?

Edited by Scoots
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Blackyv

Blackyv

Turbocharged

this guy is really talking crap....

a sengkang 4-rm flat initial launch, BTO on year1, at $160K.. then have left over.. so, on year1+1, the same unit on offer at $180K during WIS....., of cause some still not taken... then on year1+1+1, it's listed as $240K my goodness.... and look at recent BTO from punggol..... a 4-rm selling at 260K-300K+.....

 

now he claim the actual cost to build is above 300K.... i really do not understand their formula in calculating the "cost"...just like many years ago, when being challenged to open book with their lift upgrading cost, they blablablabla.... smoke thru.... [shakehead]

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Jerms

Jerms

Clutched

wah bro... now tat you bring the topic of lift upgrading up.. its another can of worms altogether.. they make so much $$ from lift upgrading.

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Chongster

Chongster

6th Gear
(edited)

If it indeed costs more than $300k to build (without any funny accounting), they would have win this argument hands down, so why aren't they publishing the breakdown cost? It would effectively stuff a big fat stopper in the mouth of all who question them on this. why aren't they doing that???

 

obvious additional "cost" i can see them adding to the cost of flat is: (i) cost of land. HDB buy land at SLA at what price, anyone? for most of us, it is left pocket, right pocket, but govt probably treat them as separate entities for accounting purposes.

 

 

the second is development cost for the HDB town, roads, CCs, town centres, libraries, markets, football courts, playgrounds etc. maybe that's all counted towards the price of your flat. which brings the question, then what's the tax we paid used for? and a lot of these are income generating anyway.

 

Mr Mah, we need to know!

Edited by Chongster
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Mydotcom

Mydotcom

1st Gear

I'm just thinking... lose 500mil a yr?

 

Did they really LOSE that 500mil?

 

see ah... I build a flat for say.. 10mil. sold it off to ppl at 20mil. But those ppl take loans from me. So I got got say.. 100K worth of downpayment back from them (the rest of the 19.9mil will be paid back in monthly installments). So that left me a deficit of 9.9mil. I then go on to buy another flat. Same thing happen, so now I got 2x9.9mil worth of deficit... and so on...

 

So my 'loss' will just keep growing as long as i keep building more new flats. Right?

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