THE CLAIMS
An article published on the government’s fact-checking website Factually elaborated on why dr.ishhaq.jay’s claims were false.
“HDB does not price and sell BTO flats to make a profit”, the article said in response to the video posted on Aug 17.
“Unlike private sector developers which are profit-driven, HDB prices new flats with the objective of keeping public housing affordable to help Singaporeans own their homes”, it said.
“To determine housing affordability, HDB looks at the resident household incomes, and compares them with the range of flat types and selling prices on offer at every BTO launch.”
“In pricing new BTO flats, HDB establishes the market value of the flats by considering the prices of comparable resale flats nearby, and then applies a significant market discount to the assessed market values, to ensure BTO flats are affordable for flat buyers. Tiered housing grants are offered by HDB, providing targeted help to those who need it the most,” it added.
In response to the video posted on Aug 18, the article said that HDB does not make a profit from selling BTO flats.
“The amount collected from the sale of HDB flats in every financial year is less than the total development cost, which includes land and construction costs, and CPF housing grants disbursed to eligible homebuyers.
“In the last three years (FY2020, FY2021 and FY2022), HDB incurred a deficit of about S$2.68 billion (US$1.98 billion) per year,” it said.
The article also clarified the false statements made about SLA.
State land is sold to HDB for the development of public housing at the fair market value assessed by the chief valuer, not SLA, who makes the professional assessment independently based on well-accepted and established valuation principles, it said.
It added that state land is part of the reserves and is not owned by SLA. As such, when state land is sold to HDB, the value paid by HDB accrues to the reserves and not to SLA.
“When state land is sold at fair market value to HDB, there is no increase in the value of the reserves. Neither are the reserves made worse-off or diminished. It is a conversion of one type of asset (land) to another (cash).”