Khaw Boon Wan: Government cannot intervene in HDB resale prices
Posted by temasektimes on October 17, 2012
Speaking to queries from PAP MP Baey Yam Keng in parliament on the increasing cash-over-valuation figures, Mr Khaw said home buyers are currently paying above the value assessed by professional valuers as it is “a seller’s market”.
He added the basis of valuation for all HDB flats are the same, whether they are resale flats transacted in the open market, flats affected by Selective Enbloc Redevelopment Scheme (SERS), or flats that are compulsorily acquired.
“Their values are assessed by a panel of professional valuers, based on established valuation principles (which comprise factors) such as location, size, storey height and the extent of renovations,” said Mr Khaw.
He stressed that the resale prices are determined solely by the market:
“Resale prices are determined by willing buyers and sellers; the government cannot intervene to determine the transaction prices for buyers and sellers.”
The prices of resale flats have sky-rocketed in recent years due to growing demand in the face of a supply crunch. Only some 30,000 new flats were built between 2006 and 2010 when the influx of immigrants was at its peak.