Forum: HDB flat prices reflect fair value of state land

The suggestions from Non-Constituency MP Leong Mun Wai (Drastically lowering BTO prices without regard for land costs will end up hurting S’poreans: Sim Ann, Dec 12) and Mr Desmond Teo Mingjie (Stop thinking of HDB flats as nest eggs for retirement, Dec 15) have the good intention of making Housing Board flat prices more affordable.

However, they fail to consider the fact that all HDB flats are built using state land resources.

The Government has a duty to all Singaporeans, both current and future generations, to dispose of and account for state land at fair value. Therefore, it is necessary for HDB to acquire such land parcels at market price, and reflect that in how it prices new flats.

Pricing state land at zero value or basing the sale price of flats on average household incomes would mean that the nation’s assets are not being accounted for.

Household incomes are already factored into the prices of new flats (How are BTO flats priced, and what are the land and building costs? HDB gives the breakdown, Dec 8).

Thus, the Government’s pricing mechanism that includes land and construction costs, along with various subsidy schemes, is the right way to go.

Ong Kim Bock

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