Last week, I’ve highlighted to the investors that when Khaw Boon Wan blogs, it’s going to be official. It seems that controlling property prices has become a definite priority of the government.
Just two days ago, after a public uproar over the $880,000 price tag for its largest units, Centrale 8’s developer has reduced the prices of its Design, Build and Sell Scheme flats (DBSS). The most expensive five-room flat is now S$778,000. Due to public woes? hmm…
To response the DBSS saga, Mr Khaw Boon Wah said in his blog, “DBSS Is Not HDB”
“If buyers find a price too high, they can walk away.
“On my part, I am ramping up more BTO launches and pricing them appropriately. I am currently preparing the next BTO launch.
“I am launching 25,000 units this year. 12,000 units have already been launched. Another 13,000 units will be launched this year, averaging 1,800 units per month.
What is Design, Build & Sell Scheme (DBSS)?
On 07 March 2005, then Minister for National Development, Mr Mah Bow Tan announced several new policies in Parliament to make the HDB experience a pleasant, memorable and rewarding one for all HDB residents.
Under DBSS, the developer tenders for the land and enjoys flexibility in designing, pricing and selling the flats subject to the relevant legislation and rules to preserve the character of public housing and ensure building quality and safety.
Flats sold under DBSS come with a 99-year lease and will be offered to buyers under similar HDB eligibility conditions like flats developed by HDB. Upon completion of the building, the developer will hand over the entire development site to HDB for lease administration, and to the Town Council for maintenance of the common areas and car parks.
Since 2005, HDB has launched the sale of land for 12 DBSS sites.
No badges for the government now
For the past few years, despite the rapid increase of HDB Prices, refer the chart here. The government was always shy on commenting the past policies in a negative way.
However, in Tin Pei Ling views on DBSS saga, which is published in Straits Times , she suggested
“Perhaps it should either let HDB take back the right to price DBSS units, or include a clause to compel price negotiations between HDB and the private developers
Just think about why such a young member’s view can become the headline in Straits Times.