Mature property BTO flat average psf increased faster than less mature properties, widening price differentials

SINGAPORE – The average sales price per square foot (psf) of build-to-order (BTO) apartments in mature properties has fallen below immature properties over the past decade, according to figures provided by Desmond Lee, Minister for National Development rose faster than on monday.

Between 2012 and the first nine months of 2022, the psf price differential between mature and less mature property BTO flats also widened.

In the first nine months of 2022, the average selling price (psf) of mature property BTO flats rose 21.9% to $584 from $479 in 2012. A 16.4% increase from $311 in 2012 to $362 in 2022.

Average selling price of new apartment below psf Prime Public Housing (PLH) model The Housing Commission has launched six PLH projects since planning began in November 2021.

Lee provided the figures in a written parliamentary response to Progressive Singapore Party non-constituent MP Leon Mun Wai.

The government has kept the flat price of BTO relatively stable by increasing subsidies, even though construction costs have risen by about 30% over the past two years, Lee said.

He pointed out that the numbers given don’t take into account housing subsidies given to eligible buyers. increased several times.

Professor Sing Tien Foo, director of the Institute of Real Estate and Urbanism at the National University of Singapore, said price increases over the past decade have “remained affordable”, falling below 22% compared to a 30% increase. increase. construction costs in the last two years;

Different rates of land cost growth in mature and less mature properties can lead to fluctuations in flat BTO prices. This is because the government needs to provide more subsidies to cover rising costs in order to keep prices within an affordable range, he said. .

Nicholas Mak, head of research and consultancy at ERA Realty, said the figures show that the price gap between immature and mature properties has widened over the years.

In 2012, mature property BTO flat sales prices (psf) were 54% higher than less mature properties.

By 2022, the price gap will widen to 61.3%, according to Mack.