SINGAPORE — Affordability remains the “core principle” in how new flats are priced so that Singaporean families can own their homes, National Development Minister Khaw Boon Wan told Parliament yesterday.

That is why the Government applies a “substantial price discount” to new flat prices, which are set taking into account typical household incomes, the market price of similar resale flats in the vicinity, as well as the flats’ attributes, such as their size and location, he added.

Eligible first-time buyers also get a further S$60,000 in housing grants, he noted.

But did not Mr Khaw say last week that he had de-linked the prices of Build-to-Order (BTO) flats from resale flat prices, Nee Soon GRC MP Lee Bee Wah asked.

Mr Khaw responded that what he meant by de-linking the two was that he varied the discounts “so that the prices can maintain steady”.

The minister added: “The quantum of the price discount and the size of the housing grants are within our control. By varying them, we ensure that we achieve the strategic intent of helping Singaporean families own their homes.”

Mr Khaw had said last Thursday that the new pricing policy had been put in place since he took over the housing portfolio after the 2011 General Election so as to stabilise BTO prices, and it will be continued for as long as “property remains hot”.

Other MPs also asked Mr Khaw whether resale levies were a “significant barrier” to home ownership for some families.

Resale levies are imposed on those buying their second subsidised flat from the Housing and Development Board, as well as second-time buyers who take over ownership of a subsidised flat from the resale market. The levy varies according to the flat type of buyers’ first home — S$15,000 for a two-room flat to S$50,000 for an executive flat.

Mr Khaw said that help is given on a case-by-case basis, depending on the family circumstances of appealing buyers. For example, it had reduced or waived interest charges on the levies or incorporated them into the prices of the new flats.