How did the HDB be so capable to have made a brilliant loss of
S$2 Billion - or is there more to it then meets the eye ?
In the an earlier thread in this Speaker's Corner - ‘Cost of
building HDB flats – finally an answer ?’ (*1) - there was
a chance report of a Public Listed Company declaring to the SGX its
success in winning a HDB contract to build a HDB township, which
allowed some estimates to be made as to the cost of a HDB unit.
‘ChannelnewsAsia Report (*2)
SGX
mainboard-listed BBR secures S$104.2m HDB
contract
By Jonathan Peeris, Channel NewsAsia | Posted: 17 August 2009 1511
hrs
Singapore Exchange’s
mainboard-listed BBR Holdings has secured a S$104.2-million
contract from the Housing & Development Board (HDB) to build
seven blocks of flats in Yishun Neighbourhood 4.
The work comprises 864 homes,
a Child Care Centre, a roof garden, communal amenities and site
works, as well as contingency works.
Since there will be 864 HDB
flats, the average cost per flat, inclusive of communal amenities,
site works and contingency works, is about $120,602 ($104.2 million
divided by 864 flats).
With the latest HDB new 4-room
flats at Punggol (Punggol Residences BTO) selling at an average
price of $293,000 (price range of $264,000 to $322,000 divided by
2), does it mean that the HDB stands to make a profit of about
$172,398 per flat, or a profit margin of about 143 per
cent?
The project will be carried out
in 10 phases and is expected to be completed by 2012.
With a near perfect monopoly in providing housing to almost 90
per cent of the Singapore population, and with each HDB flat sold
at a profit margin of 143 per cent - can the HDB be making its
first loss after over 40 years ?
There is something fishy in a Government that insist
on every ministry being profit-oriented.
