Oral Answer by Ministry of National Development on land cost for BTO flats

Jan 15, 2019

Mr Muhamad Faisal Abdul Manap: To ask the Minister for National Development what is the percentage of the land cost out of the actual cost price for a three-room, four-room, and five-room type Build-To-Order (BTO) flat constructed in 2016 and 2017.

Answer:

The cost of building HDB flats includes the cost of land, construction, consultancy fees, financing and other project-related costs. The proportion of land and construction cost for individual projects will vary from project to project, depending on specific site, design, and market conditions, as well as other factors affecting land and construction cost. For projects awarded in 2016 and 2017, the land cost was about 60% of total development cost, and this percentage was about the same across 3-, 4-, and 5-room flat types.

In general, HDB’s total development cost cannot be fully covered from the sale price of flats. This is because the pricing of new HDB flats is guided by our objective of keeping public housing affordable. In the last 3 years (FY 2015 to 2017), HDB incurred an average annual deficit of about $1.14 billion per year for its Home Ownership Programme.