Residents who paid high prices for their Design, Build and Sell Scheme (DBSS) flats are optimistic that the superior location of their estates will give them good resale flat prices in future, according to a report by The Straits Times.
Some industry observers agree that it is a flat’s location, not its design and fittings, that can fetch a premium on the resale market.
DBSS flats have been in the spotlight after Sim Lian Group, the developer of the Centrale 8 DBSS project in Tampines, drew criticism for pricing the units exorbitantly.
“Today, it is a DBSS flat, but five years from today, it will be another ordinary HDB flat. The valuation then will focus on the good location of the flats and the market sentiment,” said Mohamed Ismail, Chief Executive of PropNex.
Nicholas Mak, Head of Research at SLP International, agreed: “No one knows what the market will look like in five years’ time.”
The distinction between a Build-To-Order (BTO) flat and a DBSS flat will narrow when both enter the resale market, noted Yu Shi Ming, Associate Professor at the National University of Singapore.
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