Tan Kin Lian - Perspectives Pricing of BTO flats
I was told that at each selection exercise for the HDB BTO flats, the less popular flats are not taken up by the applicants. 

I was surprised at this outcome, because the flats are priced at an attractive discount to the market price for resale flats, and there is a long waiting time, perhaps three years or longer, for the flats to be ready. 

I was told that the applicants are allowed to select their flats based on priority as determined by a ballot. Those earlier in the queue picked the popular units at the listed prices. They were not interested in the less popular units. 

I was told that the listed prices were discounted for the lower floors, but the discount was not sufficient. There was no discount for the units with poor facing or located near the rubbish chute. 

Rather than take up the unpopular units at the listed prices, the applicants opted to try their luck at the next selection exercise, where they hoped to be placed higher in the queue to select the popular units. 

In my opinion, the problem lies with the pricing of the HDB flats. I suggest that the listed prices should be lower for the unpopular units, so that the applicants are willing to select them to enjoy a better discount. 

In particular, the discounts should be larger for the lower floors and the units with poor facing and near the rubbish chute should be given an attractive discount. 

Some applicants may be attracted to select the unpopular units and enjoy the attractive discount. 

The HDB should be able to get the right pricing based on their years of experience in the sale of the BTO flats. The board should know the appropriate discounts to get the applicants to buy the unpopular flats. 

I hope that the HDB will adopt a better pricing model and get all the available flats selected at each exercise. 

Tan Kin Lian 

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