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08-11-2011, 07:35 AM
The Straits Times
Nov 8, 2011
Prices of DBSS flats now close to those of ECs
Dennis Wee data shows median price to be just $100 to $150 psf lower
By Daryl Chin & Shuli Sudderuddin
DESIGN, Build and Sell Scheme (DBSS) flats have been attracting such strong interest that they now cost nearly as much as executive condominium (EC) units.
Their overall median price is only $100 to $150 per sq ft (psf) lower than that of the condo units, said Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Realty.
The scheme's popularity comes despite the fact that it is under review, following an outcry when Centrale 8 in Tampines made the news for its high asking prices in July.
Mr Lee said the high demand was due mainly to the fact that the projects are located in mature estates, near MRT stations.
Prices for Trivelis, the latest DBSS launch in Clementi, were about $580 psf to $728 psf. The cost of new EC flats ranges from $501 psf to $820 psf, according to data that Mr Lee gathered from sources such as the Housing Board and Urban Redevelopment Authority.
'The pricings of DBSS flats have been pushing the boundaries so much that they are now not far off from the prices of new EC projects under development,' he said.
DBSS flats, which are built on government land sold to private developers, were introduced in 2005 to provide more choice in the housing market. They feature better design and finishes than standard flats, but unlike ECs, they cannot be privatised after 10 years or contain facilities such as pools.
Since the scheme was put under review, three projects that were already in the pipeline have been launched - and they attracted strong interest. Some had as many as three bidders for every unit.
Mr Lee said DBSS properties were attractive also because, unlike resale flats, they require no cash over valuation (COV), the premium paid over and above the official value.
'The cash down payment for a DBSS unit can be lower than the COV for a resale flat, making it more attractive,' he said. 'Although buyers have to wait for it to be constructed, they are also getting a brand new flat in the process.'
However, Mr Lee added that the DBSS has served its purpose, and should be suspended until market conditions such as rising private property and EC prices make it necessary again.
Other experts The Straits Times spoke to tended to agree.
SLP International research head Nicholas Mak pointed out that DBSS has an inherent inflation mechanism as the tender goes to the highest bidder, which in turn sets the maximum price that the market can bear. This encourages a rise in prices.
According to Dennis Wee Realty's data, the last
DBSS site sold cost the developer $281 per sq ft per plot ratio (psf ppr). This was more than double the price of the first site awarded in 2006, which was $117 psf ppr.
PropNex chief executive Mohamed Ismail said that while the DBSS was meant to provide buyers with more creative housing designs, the HDB has also done this in recent years. He cited the award-winning Pinnacle@Duxton as an example. 'Because DBSS prices are so high, the gap between DBSS and ECs is not actually that much,' he added.
'For example, a Clementi DBSS flat costs $650,000 and an EC unit costs $750,000, but at $100 psf more, it comes with a swimming pool. So, with ECs, you're getting what you pay for, although the location might not be as central.'
There are two more DBSS projects, in Hougang and Pasir Ris, that have yet to be launched. So far, 13 sites have been awarded, and flats built and sold make up less than 1 per cent of HDB's total stock.
darylc@sph.com.sg
shulis@sph.com.sg
Nov 8, 2011
Prices of DBSS flats now close to those of ECs
Dennis Wee data shows median price to be just $100 to $150 psf lower
By Daryl Chin & Shuli Sudderuddin
DESIGN, Build and Sell Scheme (DBSS) flats have been attracting such strong interest that they now cost nearly as much as executive condominium (EC) units.
Their overall median price is only $100 to $150 per sq ft (psf) lower than that of the condo units, said Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Realty.
The scheme's popularity comes despite the fact that it is under review, following an outcry when Centrale 8 in Tampines made the news for its high asking prices in July.
Mr Lee said the high demand was due mainly to the fact that the projects are located in mature estates, near MRT stations.
Prices for Trivelis, the latest DBSS launch in Clementi, were about $580 psf to $728 psf. The cost of new EC flats ranges from $501 psf to $820 psf, according to data that Mr Lee gathered from sources such as the Housing Board and Urban Redevelopment Authority.
'The pricings of DBSS flats have been pushing the boundaries so much that they are now not far off from the prices of new EC projects under development,' he said.
DBSS flats, which are built on government land sold to private developers, were introduced in 2005 to provide more choice in the housing market. They feature better design and finishes than standard flats, but unlike ECs, they cannot be privatised after 10 years or contain facilities such as pools.
Since the scheme was put under review, three projects that were already in the pipeline have been launched - and they attracted strong interest. Some had as many as three bidders for every unit.
Mr Lee said DBSS properties were attractive also because, unlike resale flats, they require no cash over valuation (COV), the premium paid over and above the official value.
'The cash down payment for a DBSS unit can be lower than the COV for a resale flat, making it more attractive,' he said. 'Although buyers have to wait for it to be constructed, they are also getting a brand new flat in the process.'
However, Mr Lee added that the DBSS has served its purpose, and should be suspended until market conditions such as rising private property and EC prices make it necessary again.
Other experts The Straits Times spoke to tended to agree.
SLP International research head Nicholas Mak pointed out that DBSS has an inherent inflation mechanism as the tender goes to the highest bidder, which in turn sets the maximum price that the market can bear. This encourages a rise in prices.
According to Dennis Wee Realty's data, the last
DBSS site sold cost the developer $281 per sq ft per plot ratio (psf ppr). This was more than double the price of the first site awarded in 2006, which was $117 psf ppr.
PropNex chief executive Mohamed Ismail said that while the DBSS was meant to provide buyers with more creative housing designs, the HDB has also done this in recent years. He cited the award-winning Pinnacle@Duxton as an example. 'Because DBSS prices are so high, the gap between DBSS and ECs is not actually that much,' he added.
'For example, a Clementi DBSS flat costs $650,000 and an EC unit costs $750,000, but at $100 psf more, it comes with a swimming pool. So, with ECs, you're getting what you pay for, although the location might not be as central.'
There are two more DBSS projects, in Hougang and Pasir Ris, that have yet to be launched. So far, 13 sites have been awarded, and flats built and sold make up less than 1 per cent of HDB's total stock.
darylc@sph.com.sg
shulis@sph.com.sg
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