I WAS surprised to learn that the new HBD flat prices are to be influenced by resale market prices ("More supply but HDB prices will go up: Mah", BT, Nov 29).

I wonder whether "new" HDB prices came down during the extremely poor resale period of five or six years ago?

If they did come down, did they ever touch the "cost plus" level, including the "value" placed by the government/HDB on state lands upon which the flats are built?

Since when did resale prices decide the cost of building a flat? How much money did HDB make from selling its new flat over the last five years?

The article also reveals that the property market is not a free market but a "controlled" one as the government controls the supply side. There is thus no need to panic, as Singapore still has plenty of land to build cheap and affordable and high-quality housing for its citizens.

For the expensive and luxurious segments, permanent residents and other new migrants can afford them.

Lu Keehong
Singapore

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