Latest hdb contract award shows that hdb profits millions from building flats

[h=1]LATEST HDB CONTRACT AWARD SHOWS THAT HDB PROFITS MILLIONS FROM BUILDING FLATS[/h]
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3 Nov 2014 - 9:55pm





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According to a press release from HDB and Chip Eng Seng Corporation, HDB has just awarded a contract worth $232.8 million to Chip Eng Seng for the development of HDB blocks in Woodlands.

The construction project is expected to be finished mid-2018 and will see an additional nine residential blocks being built in Woodlands neighbourhood 1.

The company is also involved in several other HDB projects including those in Jurong West Neighbourhood 6, Bukit Panjang Neighbourhood 4 and Bukit Batok Neighbourhood 1.

What is interesting about this contract is that it also reveals the rough cost to HDB of constructing HDB flats.

9 HDB blocks are being built for a total cost of about $233 million. That means each block is being built for less than $26 million.

If we conservatively estimate that each block has about 160 units, this means that the construction cost per unit is about $163,000 a unit.

When this is compared to the recent BTO prices for the July 2014 launch in other non-mature estates, one can see that there is still a huge profit margin for HDB:



Only 2 room flats are sold below the average construction cost but unless 2 room flats make up more than half of all the flats in the blocks, there is no way that these prices result in “hundreds of millions of losses” for HDB.

In fact, HDB is making millions in profit.




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Even looking at the subsidized prices, HDB is still making hundreds of thousands per flat.

How much profit is PAP making by selling each 4 room flats at the "subsidized" prices of $230,000 each?

Singaporeans take on 25 year loans to pay off these “subsidized” houses and HDB continues to complain of millions of losses for every flat.
Last year, at the National Conversation, Minister Khaw Boon Wan said

“Every year, hundreds of millions of dollars of losses were incurred by the HDB and that's why MOF has to give the HDB an annual grant, otherwise the HDB will be in the red. It cannot be forever in the red, because there's no way it can make money. Because every unit that we sell, we lose money, HDB loses money. The accounting for the HDB is deficit accounting. So if you incur a S$300-million loss, there is a grant of S$300 million that covers it. That is how we operate the HDB.

“Let us not perpetuate this talk about HDB is making money out of building houses because if it was so simple, life would be straightforward, but that's not the case.”
What do you think?

Contractors with links benefit too. One even became a billionaire building these flats. Grassroot leader.

PAP's calculation of losses works based on actual market price less the price they sell you. If the unit is deemed to have market price of 350k and you are buying at 250k, then the subsidy is 100k. 100k x 160 units = 16M. Hence, they "subsidised" 16M per block of flats. They are calculating losses based on opportunity cost and not real losses.

Here's the kicker, they monopolise the pricing

Cerebral said:

PAP's calculation of losses works based on actual market price less the price they sell you. If the unit is deemed to have market price of 350k and you are buying at 250k, then the subsidy is 100k. 100k x 160 units = 16M. Hence, they "subsidised" 16M per block of flats. They are calculating losses based on opportunity cost and not real losses.

Here's the kicker, they monopolise the pricing

Click to expand...

Not really, u are not understanding the "market subsidy". How HDB declares a loss is simply by assigning a cost to the underlying land that the flat blocks are build on. In the TS example, the average price per flat for the construction cost works out to $163K, but it does not include the cost of the land. HDB will say that with the current market price, the land is worth XX billions$ on which the flats sit. They conveniently forget that they stole the land for cents on the dollar under the land appropriation act, and are now using the current market price for the land. Therefore, they will say that even though the flat cost ONLY $163k to build, with the land cost added in, its actually costing them $350K. SO when they sell it to you for $230K, they are subsidising you $120K. To further obscure and smoke the peasants, many of these stolen lands have been transferred to the SLA and the URA. SO, when these stat boards "sell" the land to HDB for construction, they mark it up for a huge profit, and HDB buy these lands form them for $billions. Hence justifying that they are actually losing money and subsidizing you.

Marbok Tan already said before.....
To lower prices of hdb flats by paying less for the land is akin to raiding the reserves....

Narong Wongwan said:

Marbok Tan already said before.....
To lower prices of hdb flats by paying less for the land is akin to raiding the reserves....

Click to expand...

Raiding the reserve is the prerogative of FamiLEE and cronies.
Peasants better not even dream about it.

For the price you don't even own a HDB unit. It's a 99 year lease & probably shorter because you will need to upgrade after a few years. Upgrades that will cost you $$$.

So much for 'home ownership'.


P.S: You know that election is near when even the HDB is churning out videos such as this.


[video=youtube;wlZRo9l8OTc]https://www.youtube.com/watch?v=wlZRo9l8OTc[/video]
Published on Oct 20, 2014
See how HDB has impacted the lives of a family over the past 50 years.

More than just providing a shelter, the Home Ownership Programme has allowed residents to start families and cultivate memories, while at the same time, plant their roots in Singapore.

Papsmearer said:

Not really, u are not understanding the "market subsidy". How HDB declares a loss is simply by assigning a cost to the underlying land that the flat blocks are build on. In the TS example, the average price per flat for the construction cost works out to $163K, but it does not include the cost of the land. HDB will say that with the current market price, the land is worth XX billions$ on which the flats sit. They conveniently forget that they stole the land for cents on the dollar under the land appropriation act, and are now using the current market price for the land. Therefore, they will say that even though the flat cost ONLY $163k to build, with the land cost added in, its actually costing them $350K. SO when they sell it to you for $230K, they are subsidising you $120K. To further obscure and smoke the peasants, many of these stolen lands have been transferred to the SLA and the URA. SO, when these stat boards "sell" the land to HDB for construction, they mark it up for a huge profit, and HDB buy these lands form them for $billions. Hence justifying that they are actually losing money and subsidizing you.

Click to expand...

Too verbose and full of numbers...it will take 52 man years to find all the answer...

Khaw boon wan: We already subsidize bto flats a lot, resale flats cost 31% more

[h=1]KHAW BOON WAN: WE ALREADY SUBSIDIZE BTO FLATS A LOT, RESALE FLATS COST 31% MORE[/h]
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4 Nov 2014 - 9:31am





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In response to a parliamentary question, Khaw Boon Wan explained that the government already subsidizes BTO flats a lot and he pointed out that in the suburbs, resale prices are about 31% higher than BTO flats.
He also emphasised that the difference is bigger now than in 2004 when it was only 18%.
Khaw also noted that private homes in the same areas at about 1.5 times more expensive than resale. This means that BTO flats are almost half the price of comparable private homes in the same area.
However, Minister Khaw also noted that we should be careful when interpreting and comparing HDB and private home prices as the classifications are very different.
For example, ‘Outside Central Region’ and ‘Rest of Central Region’ are terms used for private properties while HDB uses mature and non-mature estates. These two are not necessarily the same areas.
Khaw also said that HDB flats are quite standard and come in different sizes which will determine their rough value. For private properties, there is a large range of units with very different prices.
In any case, when looking at average prices, BTO flats are still considerably cheaper than resale and private.
In response to another question about the number of applicants who have been barred from the BTO exercises due to booking cancellations, Khaw explained that since 2012, there have been 3,500 people who have been barred for 1 year.



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Khaw explained that this 1 year ban is put in place to discourage people from making bookings without a real intention to buy.
He explained that when people do this, it wastes admin resources and is unfair to genuine buyers who will have their own flat purchases delayed because of long queues.
While unclaimed flats are sold in subsequent balance of sale exercises, Khaw explained that this doesn’t immediately address the needs of genuine buyers who have missed out because of the delays involved.
"HDB prefers to accumulate its balance flats and sell them under a Sale of Balance Flats exercise when there is a sufficiently large supply. This allows applicants more choices of flat types in various locations."

Related:
[h=3]Khaw Boon Wan: I Still Think Families Who Earn $1,000 Can Buy a Flat [/h]

Re: Khaw boon wan: We already subsidize bto flats a lot, resale flats cost 31% more

Same old shit from the same old party

Re: Khaw boon wan: We already subsidize bto flats a lot, resale flats cost 31% more

No other government in the world does such a fantastic job of housing its population.

Re: Khaw boon wan: We already subsidize bto flats a lot, resale flats cost 31% more

makapaaa said:

[h=1]KHAW BOON WAN: WE ALREADY SUBSIDIZE BTO FLATS A LOT, RESALE FLATS COST 31% MORE[/h]

4 Nov 2014 - 9:31am

In response to a parliamentary question, Khaw Boon Wan explained that the government already subsidizes BTO flats a lot and he pointed out that in the suburbs, resale prices are about 31% higher than BTO flats.
He also emphasised that the difference is bigger now than in 2004 when it was only 18%.
Khaw also noted that private homes in the same areas at about 1.5 times more expensive than resale. This means that BTO flats are almost half the price of comparable private homes in the same area.
However, Minister Khaw also noted that we should be careful when interpreting and comparing HDB and private home prices as the classifications are very different.
For example, ‘Outside Central Region’ and ‘Rest of Central Region’ are terms used for private properties while HDB uses mature and non-mature estates. These two are not necessarily the same areas.
Khaw also said that HDB flats are quite standard and come in different sizes which will determine their rough value. For private properties, there is a large range of units with very different prices.
In any case, when looking at average prices, BTO flats are still considerably cheaper than resale and private.
In response to another question about the number of applicants who have been barred from the BTO exercises due to booking cancellations, Khaw explained that since 2012, there have been 3,500 people who have been barred for 1 year.

Khaw explained that this 1 year ban is put in place to discourage people from making bookings without a real intention to buy.
He explained that when people do this, it wastes admin resources and is unfair to genuine buyers who will have their own flat purchases delayed because of long queues.
While unclaimed flats are sold in subsequent balance of sale exercises, Khaw explained that this doesn’t immediately address the needs of genuine buyers who have missed out because of the delays involved.
"HDB prefers to accumulate its balance flats and sell them under a Sale of Balance Flats exercise when there is a sufficiently large supply. This allows applicants more choices of flat types in various locations."

Click to expand...

Don't be decieved by this trickster million dollar minishit. The reason why there is a price difference between BTO and resale flats is not due to any claimed subsidies the PAP gave. Its due to the market available for such flats. In the case of BTOs, most of them are reserved for first time buyers. Whereas anyone, including the first time buyers can and are eligible to buy resale flat. Therefore, the pool of potential buyers for resale flats is much larger than for BTO flats. When your market segment is restricted to a much smaller pool of buyers, you cannot expect to command the same price as for flats that have a less restricted and larger pool of customers.

Because the BTO's eligibility are restricted for first time buyers, this means that they are usually bought by young couples and people with who are just starting a family or career. Their earning power normally does not allow them to buy resale flats. If the HDB were to price the BTO the same as the resale flats, they will find many empty.

Therefore, Penang cow is just disengeneous when he says he is giving a subsidy.

blissquek said:

Too verbose and full of numbers...it will take 52 man years to find all the answer...

Click to expand...

I can't help it if your brain is small.

Papsmearer said:

Not really, u are not understanding the "market subsidy". How HDB declares a loss is simply by assigning a cost to the underlying land that the flat blocks are build on. In the TS example, the average price per flat for the construction cost works out to $163K, but it does not include the cost of the land. HDB will say that with the current market price, the land is worth XX billions$ on which the flats sit. They conveniently forget that they stole the land for cents on the dollar under the land appropriation act, and are now using the current market price for the land. Therefore, they will say that even though the flat cost ONLY $163k to build, with the land cost added in, its actually costing them $350K. SO when they sell it to you for $230K, they are subsidising you $120K. To further obscure and smoke the peasants, many of these stolen lands have been transferred to the SLA and the URA. SO, when these stat boards "sell" the land to HDB for construction, they mark it up for a huge profit, and HDB buy these lands form them for $billions. Hence justifying that they are actually losing money and subsidizing you.

Click to expand...

Money collected from this land sales will be channel to GIC. GIC uses your money to gamble, sorry it should be invest.

Back to the topic, you see now you are paying the cost of everything, inflation and profit through ever increasing rental,food costs, daily necessity. Song Bo , Singapore citizens ?

So what are you daft Sinkie going to do about this?

Hong Lim park protest? Or go buy private properties instead and boycott HDB pigeon holes so that HDB can not sell any of these units to daft Sinkie anymore?

Can't do eithier?

Then complain for fuck? hahahahahahaha

soIsee said:

So what are you daft Sinkie going to do about this?

Hong Lim park protest? Or go buy private properties instead and boycott HDB pigeon holes so that HDB can not sell any of these units to daft Sinkie anymore?

Can't do eithier?

Then complain for fuck? hahahahahahaha

Click to expand...

For this, the best thing to do is to not do anything: don't buy a HDB flat. Don't feed the monster that tries to rip you off and then call a lease 'home ownership'.

If never earn money businesses, they will let you have the first in the Q.

laksaboy said:

For this, the best thing to do is to not do anything: don't buy a HDB flat. Don't feed the monster that tries to rip you off and then call a lease 'home ownership'.

Click to expand...

Don't buy a HDB pigeon hole?

Camp on the beach?
Stay under void deck?

The fact remains that the majority of Sinkie are UNDER-paid AND if they can 'afford' a roof over their heads, it ONLY can be a HDB pigeon hole!

You guys in this forum are truly losers and you want the PAP to relinquish POWER?

Another trip down fantasy lane! LoL

Re: Khaw boon wan: We already subsidize bto flats a lot, resale flats cost 31% more

Leongsam said:

No other government in the world does such a fantastic job of housing its population.

Click to expand...

You mean putting people into financial bondage.