http://www.todayonline.com/Business/...,-say-analysts

DBSS flats will still be in demand if sensibly priced, say analysts

by Jo-Ann Huang Limin

04:47 AM Jun 23, 2011


SINGAPORE - Despite the negative reaction to the latest Design, Build and Sell Scheme (DBSS) launch Centrale 8, there will still be demand for such flats going forward, industry watchers have told MediaCorp.

The Ministry of National Development (MND) is reviewing the DBSS scheme.

Mr Nicholas Mak, executive director of research & consultancy at SLP International, pointed out that DBSS flats still have a place in the market - provided that such flats are priced "sensibly", as some buyers want flats designed by private developers.

Said Mr Mak: "Private developers in a competitive market may engage some creative designers or architects that can give certain value that consumers may be willing to accept."

Still, Mr Ku Swee Yong, chief executive officer of International Property Advisor, felt that, with the overwhelming demand for more affordable housing, DBSS flats should take a "backseat" to allow for cheaper Build-To-Order (BTO) flats, until demand and supply becomes more "balanced".

Said Mr Ku: "In our current context, where we are short of affordable homes to the tune of 15,000 to 20,000 more a year, and the minister is also trying to ramp up more and faster construction of HDB flats, perhaps the DBSS scheme is not valid for a while."

DBSS flats are built and sold by private developers, offered under public housing eligibility criteria. Household income ceiling must not exceed S$10,000 to be eligible for such flats, higher than the current S$8,000 ceiling for BTO flats.

In response to queries from MediaCorp, the MND reiterated that DBSS flats were introduced to offer "greater choice and wide variety" to high-income buyers, with better design and finishes, and "are well-appreciated by buyers".

The ministry added: "DBSS flat buyers are indeed subsidised by the Government, but they receive their subsidy directly through the CPF housing grants."

The pricing and relevance of DBSS came in for debate after an uproar over prices for Centrale 8 at Tampines. Prices were eventually set below than the initial indicative price, at up to S$788,000 for a five-room flat.