# Media Statement on HDB's Pricing Approach and Development Costs for BTO Flats - **Source:** Ministry of National Development - **Published:** 2022-12-07T05:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/media-statement-on-hdbs-pricing-approach-and-development-costs-for-bto-flats - **Topics:** HDB & Public Housing, Transactions & Deals ## Featured rationale Prices rising more slowly than household incomes signals maintained BTO affordability, potentially supporting first-time buyer demand despite higher land and building development costs. ## AI summary Average BTO prices rose 16% in non-mature estates and 22% in mature estates from 2012 to 1-3Q2022, below 26% household-income growth through 2021. ## Original article Table 1: Average BTO selling price per square foot Period Period Non-Mature Estates Non-Mature Estates Mature Estates Mature Estates 2012 2012 $311 $311 $479 $479 1-3Q2022 1-3Q2022 $362 $362 $584 $584 Growth (%) Growth (%) 16% 16% 22% 22% 6 The increase in BTO flat prices over this period has kept within the growth in resident household incomes. From 2012 to 2021, the median resident employed household income grew by 26%. The resident employed household income at the 2nd income deciles grew at a faster rate during that period, by 32%. On top of the subsidy applied, HDB provides housing grants to help targeted demographic groups achieve their home ownership aspirations, and housing grants have also increased several times over the same period. Table 2: Home Ownership Deficit S/N S/N FY2019/20 ($m) FY2019/20 ($m) FY2020/21 ($m) FY2020/21 ($m) FY2021/22 ($m) FY2021/22 ($m) (A) (A) Home Ownership Deficit [mainly from the Gross loss on flat sales completed (i.e. keys issued to buyers), CPF Housing Grants for resale flats and expected loss for flats under development. [3]] Home Ownership Deficit [mainly from the Gross loss on flat sales completed (i.e. keys issued to buyers), CPF Housing Grants for resale flats and expected loss for flats under development. [3]] 2,232 2,232 1,953 1,953 3,850 3,850 [3] The provision for expected loss is based on the estimated selling prices, CPF Housing Grants for HDB flats, land development costs and building development costs of projects which have commenced or are still under development. The provision for expected loss will continue to be adjusted over the course of construction period due to contract variations etc., and the finalized loss will be reported as gross loss on flat sales completed (when the keys are issued to buyers). Table 3: For flat sales completed (i.e. keys are issued to buyers) – Breakdown of Cost of flats[4] S/N S/N Breakdown of Cost of sales for sales completed Breakdown of Cost of sales for sales completed FY2019/20 ($m) FY2019/20 ($m) FY2020/21 ($m) FY2020/21 ($m) FY2021/22 ($m) FY2021/22 ($m) (i) (i) Land development costs[4] Land development costs[4] 2,349 2,349 1,816 1,816 3,167 3,167 (ii) (ii) Building development costs[4] Building development costs[4] 1,598 1,598 1,161 1,161 2,077 2,077 (iii) (iii) Other costs (largely from cost of flats acquired from ex-flat owners) Other costs (largely from cost of flats acquired from ex-flat owners) 142 142 88 88 102 102 (B) (B) Cost of sales of completed flats (i)+(ii)+(iii) [Number of flats where keys have been issued to buyers] Cost of sales of completed flats (i)+(ii)+(iii) [Number of flats where keys have been issued to buyers] 4,089 [11,609 units] 4,089 [11,609 units] 3,065 [8,124 units] 3,065 [8,124 units] 5,346 [13,506 units] 5,346 [13,506 units] [4] Land and building development costs are the actual development cost of flats launched in earlier years. ## Chinese translation > Translation model: grok_cli ### 关于建屋发展局预购组屋定价方式与开发成本的媒体声明 表1：预购组屋平均每平方英尺售价 期间 期间 非成熟市镇 非成熟市镇 成熟市镇 成熟市镇 2012 2012 $311 $311 $479 $479 1-3Q2022 1-3Q2022 $362 $362 $584 $584 增长（%） 增长（%） 16% 16% 22% 22% 6 在此期间，预购组屋价格的涨幅一直处于居民家庭收入增长范围之内。从2012年到2021年，就业居民家庭收入中位数增长了26%。同期处于第二收入十分位的就业居民家庭收入增速更快，达32%。除所提供的补贴外，建屋发展局还提供住房津贴，协助特定人口群体实现置业愿望；同期住房津贴亦已多次上调。 表2：住房拥有赤字 序号 序号 2019/20财年 （百万元） 2019/20财年 （百万元） 2020/21财年 （百万元） 2020/21财年 （百万元） 2021/22财年 （百万元） 2021/22财年 （百万元） （A） （A） 住房拥有赤字 [主要来自已完成单位销售的总亏损（即钥匙已发给买家）、转售组屋的公积金住房津贴，以及在建单位的预期亏损。[3]] 住房拥有赤字 [主要来自已完成单位销售的总亏损（即钥匙已发给买家）、转售组屋的公积金住房津贴，以及在建单位的预期亏损。[3]] 2,232 2,232 1,953 1,953 3,850 3,850 [3] 预期亏损拨备是根据已开工或仍在开发中的项目的估计售价、建屋发展局组屋的公积金住房津贴、土地开发成本和建筑开发成本计算的。预期亏损拨备将在整个施工期间因合同变更等继续调整，最终亏损将在单位销售完成（钥匙发给买家）时，作为已完成单位销售的总亏损呈报。 表3：已完成单位销售（即钥匙已发给买家）——组屋成本明细[4] 序号 序号 已完成销售的销售成本明细 已完成销售的销售成本明细 2019/20财年 （百万元） 2019/20财年 （百万元） 2020/21财年 （百万元） 2020/21财年 （百万元） 2021/22财年 （百万元） 2021/22财年 （百万元） （i） （i） 土地开发成本[4] 土地开发成本[4] 2,349 2,349 1,816 1,816 3,167 3,167 （ii） （ii） 建筑开发成本[4] 建筑开发成本[4] 1,598 1,598 1,161 1,161 2,077 2,077 （iii） （iii） 其他成本 （主要来自向前业主收购组屋的成本） 其他成本 （主要来自向前业主收购组屋的成本） 142 142 88 88 102 102 （B） （B） 已完成组屋的销售成本 （i）+（ii）+（iii） [钥匙已发给买家的组屋单位数量] 已完成组屋的销售成本 （i）+（ii）+（iii） [钥匙已发给买家的组屋单位数量] 4,089 [11,609个单位] 4,089 [11,609个单位] 3,065 [8,124个单位] 3,065 [8,124个单位] 5,346 [13,506个单位] 5,346 [13,506个单位] [4] 土地与建筑开发成本为较早年份推出组屋的实际开发成本。