The 6 per cent subsidy clawback - which will be imposed on the resale of flats under the Prime Location Public Housing (PLH) model, has seen mixed views from property analysts. Some think that it is "reasonable", while others think that it could be higher.
Ms Christine Sun, senior vice-president of research at OrangeTee & Tie, said the 6 per cent recovery rate “seems reasonable”. This is because HDB resale flat prices have risen across the board over the past decade – and prices have gone up 9.1 per cent year-to-date, she said.
Given that the flats will hit the open market around 2038, after a longer construction period and 10-year minimum occupation period (MOP), she said: “There is a high probability for the PLH flats to achieve more than a 6 per cent price growth in 17 years.”