The rule of thumb is 20-30% discount on fair market value. Not 80%! Yes, it's a pretty sweet scheme if you're eligible, but it's not a total giveaway.
If you really could buy a $400k HDB that was comparable to the $2m condo next door then the $2m condo would never even be built, as there would be no market for it.
HDB vs Condo is a lot more.
There are serious restrictions on resale hdb flats which cause them to be priced a lot lower than condos.
These restrictions are deliberate policy to ensure affordable housing and subsidise Citizens and PR.
The major ones:
- You have to be a citizen or PR of at least a few years. This cuts out 1.5 million people.
- You have to meet racial and PR quotas. This limits demand.
- You can't have other properties. This excludes people with overseas property and excludes wealthier Singaporeans from buying HDBs as investment property.
I don't know where people thing the SG government would get these "incredible" subsidies from anyway. It's not the UAE!
Over 80% of the population live in HDB-provided apartment housing. However, the vast majority of those residents own their own apartments, having purchased them from the government (and yes, certain subsidies can apply - up to perhaps 30% the fair value of the property). It's public housing only insofar as it was developed by the government - certainly not free or nearly-free as the phrase might imply in other countries, so it's quite a misleading term to use.