Landsales under Design, Build and Sell Scheme suspended

The DBSS site at Bendemeer Road will be withdrawn from the market as well.

DMG Research noted:

The Ministry of National Development announced that it is reviewing the Housing and Development Board's Design, Build and Sell Scheme (DBSS). In the meantime, future landsales under the scheme will be suspended pending the outcome of the review. The DBSS site at Bendemeer Road, originally slated for launch in 1H2011, will be withdrawn from the market. We believe the review is in response to the recent outcry over high DBSS flat prices triggered by Sim Lian’s launch of its DBSS project at Tampines, Centrale 8. Notwithstanding its prime location, Centrale 8’s projected selling prices of $600-650 psf means that the price gap with Executive Condominium units (which has full condo facilities) is narrowing and begs the issue of the relevance of the scheme, which after all forms part of the public housing stock. The HDB has originally planned to launch enough sites for 4,000 DBSS flats this year, an increase from last year’s supply of 3,000 units. This would have supplement the 25,000 BTO flats to be released this year. So far, two DBSS land parcels yielding a total of 1,230 units have already been sold, in Clementi and Pasir Ris towns. We believe the slack from DBSS will be taken up by the launch of more BTO projects. We remain NEUTRAL on the sector.

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