Oral Answer by Ministry of National Development on BTO flat prices
Feb 7, 2017
Mr Low Thia Khiang: To ask the Minister for National Development what is the pricing mechanism of Built-To-Order (BTO) flats compared to unsold BTO flats released under a Sale of Balance Flats (SBF) exercise that results in the BTO price for the same flat exceeding the SBF price in some cases and not in others.
Answer:
New HDB flats offered under the Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises are priced using the same methodology, which takes into account the prices of comparable resale flats in the vicinity, as well as the specific attributes of the flats, such as storey height and design.
However, the prices of SBF units may differ from that in the BTO exercise for several reasons. First, the SBF price may be slightly higher as the units are closer to completion. Second, the SBF prices may also be updated if there is a change in prevailing market conditions. For example, in cases where the prices of comparable resale flats in the vicinity have softened since the time of the BTO launch, the prices of balance flats may be lower than their original prices.
Regardless of whether the flats are sold under BTO or SBF exercises, HDB gives a generous market discount to ensure that new flats are affordable to buyers. On top of the subsidised prices, eligible first-timer families can also receive up to $80,000 in housing grants to help them purchase their flat.