HDB announces its approach to pricing, development cost of new public housing

The Housing and Development Board said its pricing approach towards new flats is different from that of private developers. The HDB does not build flats aiming to recover costs or earn a profit, nor take into account construction and land costs in its valuation. To price new flats, HDB will consider transactions of nearby resale flats. It will then apply market subsidies to determine the price difference between new and resale flats. The growth in prices of flats in the past decade is 16% for non-mature estates and 22% for mature estates.