Quote:Yes! i say you are right. But does HDB think so? At least HDB maintains building new flats are subsidised to a certain extend. How much if any?
i was once traveling in a taxi and the taxi driver an ex-building contractor told me roughly the cost of building a 3 room HDB.
So he thought there was profit for HDB building NEW flats.
What subsidy? There was no subsidy for him.
1. Most common belief of how a HDB should be priced
Price of HDB = Construction cost + admin cost
2. Gov belief of how a HDB should be priced
Price of HDB = Construction cost + admin cost + land cost
So, which equation do you think is correct or suitable or reasonable?
My belief is that the flats all over Singapore had different levels of demand by citizens of Singapore and therefore, land cost must be factored in to make it fair to the rest of the Singaporeans. I am fine with the 2nd equation.
But, "land cost" is subjective. So, if you are debating on what is the correct pricing of the land, I have no answer. However, if you think that the current gov is always overpricing the land, you can make your views known or make your vote counts.
But, saying that the HDB price is simply equal to construction cost + admin cost is not going to work.