Subsidy clawback for new Pearl’s Hill BTO project could be as high as 20%: Analysts

Comparing the Pearl’s Hill project to Berlayar Residence, which offers a similar unit mix, prices for homes there could start from around S$218,000 to S$369,000 for a two-room flexi flat, S$420,000 to S$562,000 for a three-room flat and S$578,000 to S$788,000 for a four-room flat, Mr Lim said.  

“Therefore, it is likely that the project will feature a new and higher subsidy recovery (clawback) rate. We estimate that this could fall within the range of 18 to 20 per cent,” he said.  

Similarly, Huttons’ senior director of data analytics Lee Sze Teck estimated the figure could be as high as 20 per cent.

“Construction costs are likely to be much higher due to the need for deeper foundations. HDB will likely have to provide more subsidies to keep prices affordable,” he noted.

Using Berlayar Residence as a guide, he estimates that the prices of four-room flats may start from S$600,000.

“Compared to the average resale prices of more than S$1.4 million for a four-room in Pinnacle@Duxton, the BTOs in Pearl’s Hill are likely to be much more affordable, improving access for Singaporeans to live in the highly coveted city location,” he said.