Written Answer by Ministry of National Development on how HDB derives the price of a 2-room Flexi flat and 3-room flat
Sep 13, 2021
Mr Muhamad Faisal Abdul Manap: To ask the Minister for National Development (a) how does HDB derive the price of a new flat unit for (i) 2- room Flexi flat and (ii) 3-room flat; (b) why is there such a wide difference in the pricing; (c) what is the standard difference in flat sizes for the two flat types; and (d) what are the factors taken into consideration when determining the size of the two flat types.
Answer:
In pricing new flats, HDB first establishes the market value of the flat by considering the prices of comparable resale flats nearby, as well as the individual attributes of the flat, such as its location, floor area, storey height and orientation, as well as accessibility to key transport nodes and amenities. A significant subsidy is then applied to the market value so that new flats are priced below market to ensure affordability. Eligible first-timer flat buyers can also enjoy the Enhanced CPF Housing Grant (EHG) of up to $80,000, which provides further support to lower- and middle-income families buying their first home.
The typical HDB flat sizes are 36sqm for 2-room Flexi Type 1 flats, 46sqm for 2-room Flexi Type 2 flats, and 66 sqm for 3-room flats. 3-room flats are thus 1.4x to 1.8x larger than 2-room Flexi flats, with difference in sizes ranging from 20 to 30 sqm.
The price differences between 2-room Flexi flats and 3-room flats arise mainly due to the differences in their respective floor areas. At the individual flat level, differences in flat attributes also impact the price. In addition, 2-room Flexi flats can be offered on short leases of between 15 and 45 years, where prices will be adjusted downwards to account for the lease length and conditions.
HDB offers various flat types – ranging from 2-room Flexi to 3-Gen flats to meet the different needs and budgets of home buyers. All flats, including 2-room Flexi and 3-room flats, are designed to be fully functional, for instance, meeting the needs for basic furniture placement, and comply with Universal Design requirements.