National Development Minister Khaw Boon Wan tried to differentiate Design, Build and Sell Scheme (DBSS) developments from HDB flats, following the stir caused by the launch of a DBSS project, which is marketing a five-room flat for a whopping S$880,000.
"While HDB flats are designed and priced by HDB, DBSS flats are designed and priced by private developers. If the private developer prices it too high and there are no takers, there will be no sales," he wrote in his latest blog entry entitled "DBSS Is Not HDB".
The minister noted that price control is not part of the contract when private developers tender for the site and home buyers can choose to walk away from the acquisition.
Mr. Khaw added that he is ramping up Build-to-Order (BTO) launches and working on pricing them properly.
"I am launching 25,000 units this year. 12,000 units have already been launched. Another 13,000 units will be launched this year, averaging 1,800 units per month," the minister wrote.
Located in Tampines, Centrale 8 was developed by Sim Lian Group Limited. The S$880,000 price tag for a five-room flat works out to around $750 psf, which is typical for suburban condominiums.
The DBSS project has earned negative criticism, following its launch.
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