HDB flat prices overestimated

Prices of new HDB flats are overestimated by the public, according to a survey by the Ministry of National Development (MND) and reported in the media.

The study which polled over 1,400 housing board residents aged 20 and above also revealed that one in five respondents plan to buy a flat over the next five years.

A 4-room flat in a non-mature estate had an average price of $295,000 last year.

Conducted in November, the survey showed that one-third of respondents did not know the cost of the said flats, while four in 10 overestimated the price.

Around 28 percent thought those flats cost between $300,001 and $400,000, 11 percent estimated a price of $400,001 to $500,000, while five percent believed they cost even more.

Only 19 percent indicated a price of between $200,001 and $300,000, while three percent thought they cost less.

Meanwhile, those planning to buy a flat over the next one to two years were willing to pay as much as or more than the actual price of Build-to-Order (BTO) flats in non-mature estates.

For 3-room flats, 45 percent were willing to pay between $200,001 and $300,000, while 13 percent would pay more.

The said flats have an actual average price of $186,000 excluding government grants.

For the 4-rooms, 26 percent were willing to pay between $300,001 and S$400,000, while 35 percent were willing to pay even more.

The actual average price of such units was $295,000 before grants.

Over 50 percent of prospective buyers were willing to pay more than the average price of 5-room flats.

The survey indicated that buyers were also prepared to pay more for flats located in mature estates.

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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