Comparing flat prices of last week’s Build-to-Order (BTO) launch directly to those launched in May and assuming that the prices of new HDB flats are falling is ill-advised, according to National Development Minister Khaw Boon Wan, in a report from The Straits Times.
The minister added that there is no reason for a sharp price decrease unless market response dips.
He argued that “pricing a flat is quite tricky as there are many factors at play,” citing certain variables such as location, the floor a unit is on and proximity to facilities and amenities like MRT stations.
The prices of new HDB flats are usually anchored on prevailing resale prices, then discounted.
Mr. Khaw said that for every BTO launch, various products are offered “so you cannot just look at the July BTO, the lowest is so much, and then the May one, and say there is an 18 percent drop.”
Last week, HDB launched 3,600 new BTO flats across seven locations in Bukit Panjang, Sengkang, Jurong West, Tampines and Yishun. The indicative asking prices for three-, four- and five-room flats were S$137,000, S$217,000 and S$274,000 respectively.
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