I REFER to the letter, 'How does HDB price WIS flats?' (ST, Nov 10), by Ms Tan Wee Ping.
In pricing new flats, HDB first derives their market values, taking into account the transacted resale prices of comparable flats in the vicinity, adjusted for differences in attributes such as age, location, design, floor area, finishes, orientation, view and storey height.
New HDB flats are then priced below their equivalent market values so that buyers enjoy a substantial market subsidy.
It would not be appropriate to compare the new HDB flat prices of a particular town against movements in HDB's Resale Price Index (RPI), as the RPI is a composite index that indicates the overall price movement of resale HDB flats across the various towns and flat types.
The new HDB flats being offered would have differing attributes (such as location, orientation and view) and such attributes have a great influence on the prices of the flats offered.
HDB offers a wide range of flat types at varying prices to cater to the different housing needs of flat buyers.
Flats offered under HDB's Balloting Exercises (BE) tend to have higher prices that reflect their more popular locations within mature estates. Specifically, the new four-room flats in Queenstown mentioned by Ms Tan are located near the MRT station and other amenities.
Those seeking more affordable housing options can apply for new HDB flats offered in other locations under Walk-In Selection Exercises.
Alternatively, eligible buyers can consider buying a resale HDB flat from the open market with the CPF Housing Grant.
We thank Ms Tan for her feedback.
Kee Lay Cheng (Ms)
Deputy Director
(Marketing & Projects)
For Director
(Estate Administration & Property)
Housing & Development Board
