4-room BTO flat price increased 14.4%?

HDB has just launched BTO flats in the mature estate of Toa Payoh, with 4 – room prices starring from $413,000. [Link]

In the November 2012 Toa Payoh Crest BTO, 4 – room prices were from $361,000. [Link]

This is an increase of 14.4%.

But Resale Price Index decreased 5.1%?

The HDB Resale Price Index http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatResaleIndex?OpenDocument

has dropped by about 5.1% from 206.6 in the 2nd quarter of 2013 to 196.0 (2nd quarter 2014), and about 3.4% from 202.9 to 196.0 from the 4th quarter of 2012 to the 2nd quarter of 2014.

So, if the Resale Price Index dropped by 3.4%, why did the price increase by 14.4%?

BTO prices delinked from resale prices?

It may be bad enough that in the past, we were told for years that HDB BTO prices were pegged to resale prices, and then recently that they have been delinked – only now to appear as a if they increase much more when resale prices dropped quite a lot in the same estate.

Transparency and accountability please?

Can we have more transparency and accountability as to how HDB flats’ prices are determined.

Land costs 60%?

Is it about 60% of the price is allocated to land costs?

HDB lose billions every year?

How much profits has the HDB been making all these years?

Govt not spending a single cent on HDB?

Is the Government still not spending a single cent on public housing (HDB) as it makes profits from the sale of HDB flats?

S Y Lee and Leong Sze Hian

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