Why do studio units for seniors cost so much more than BTO flats for singles?

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SINGAPORE - There has been high demand for the newly launched Build-To-Order two-room Housing Board flats for singles.

Buyers are entitled to various housing grants, which can lower the price of such flats to about $50,000. For singles who apply jointly, the net price is even lower, at about $16,000.

Hence, the flat may be viewed as a good long-term investment for eventual resale or rental.

In contrast, the price of a similar studio apartment for seniors aged above 55 is about $90,000.

The studio apartment comes with wardrobes, kitchen cabinets and flooring, but it is still difficult to comprehend why there is such a big price difference. Studio apartments are also on a 30-year lease, and owners are not allowed to rent out or resell the units.

Some seniors are unemployed and may have financial difficulty in purchasing a studio apartment. The price of such units should be reviewed.

Can the HDB also enlighten us on the price differential between a new two-room flat and a studio apartment?

 -Henry Lim


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