Back on the market

Govt likely to resume confirmed list land sales ; 111 Pinnacle@Duxton units still for sale

IF THE economy recovers and consumer confidence returns, prices of resale Housing and Development Board (HDB) flats could increase by 1 to 2 per cent this year, said Minister for National Development Mah Bow Tan.

But, he stressed, the key is making sure that housing is accessible to Singaporeans even if prices go up. The Government does this by keeping prices of new flats affordable and giving grants to resale flat buyers, said Mr Mah.

On average, new HDB flat owners spend about 20 per cent of their household income on instalments while resale flat owners spend about 25 per cent - below the recommended 30 per cent threshold for repayments to be comfortable, he said.

HDB resale prices rose 1.4 per cent in the second quarter. Mr Mah's assurance was that any increments would not be as volatile as seen in private property prices. The two markets have different dynamics and HDB controls its supply.

As for the private market, the Minister reiterated, the Government was keeping watch for signs of overheating and would take action if need be. This could involve bringing back the confirmed list system of the Government Land Sale programme at the year's end.

Last October, with Singapore in recession, the Government had suspended the confirmed list to prevent oversupply. But now that the market is recovering, "there is every likelihood that we will resume the confirmed list", said Mr Mah. Sites are currently released through the reserve list, going up for tender only if developers indicate interest.

Meanwhile, house-hunters who missed their shot at a unit at The Pinnacle @ Duxton can try their luck again.

There are still 111 unsold units in the 50-storey project, as a result of some buyers backing out. This, despite initial overwhelming response - in the HDB's balloting exercise last September, the remaining 428 units of the 1,848-unit project drew 3,116 applications.

The available flats will be sold at a future exercise; HDB declined to say when.

At yesterday's launch of the final skybridge to be installed, Mr Mah said homeowners can expect to collect their keys by December.

Last May, HDB changed its application process to address the low take-up rates for new flats despite thousands of applications. A first-time buyer, who twice rejects an offer to buy a flat at HDB's build-to-order or balloting exercises, loses his first-timer priorities for a year.

Source: Today, 3 Sep 2009