I REFER to the letter, 'Affordable HDB flats: Costings don't add up' by Mr Steven Yeo (July 22).
Mr Yeo cited a Forum page letter published on July 12, 2004, where the writer gave the construction cost of a new flat as $50,400.
This does not give the full picture of how much it costs to build flats. As HDB explained in its reply of July 23, 2004, the figures cited relate only to building works. The total construction cost of flats includes other costs such as infrastructure, piling works, lift installation, consultancy and project management, financing and purchase of land.
We have explained before in previous letters that the total cost of development in the current market is about $300,000 for a four-room flat in Punggol-Sengkang New Town. This is significantly higher than the subsidised price of a four-room flat in Punggol-Sengkang sold by HDB at about $200,000 to $260,000.
Kee Lay Cheng (Ms)
Deputy Director (Marketing and Projects)
for Director (Estate Administration and Property)
Housing and Development Board
