 According to Minister for National Development, Khaw Boon Wan, HDB pays market rate for its land and construction cost for public housing and that it incurs a housing deficit because it prices the flats below market rate.The Government implemented market pricing and the asset enhancement policy for public housing in the late 1980s.The aim of this programme was to allow heartlanders a chance at enjoying the appreciation of their HDB flat – which is a key asset for most of them.