Extension of Public Rental Scheme to 3-Room Flats

Mr Lim Biow Chuan asked the Minister for National Development (a) whether HDB will review the Public Rental Scheme to allow the rental of 3-room flats to larger families; (b) what are the current plans for the existing stock of 3-room rental flats; and (c) whether there are plans by HDB to provide affordable HDB rental flats for citizens who are not eligible under the Public Rental Scheme.

Mr Khaw Boon Wan: We stopped letting out 3-room public rental flats more than 30 years ago. This is to encourage home ownership for the vast majority of Singaporeans, while we focus on helping the lower income group who cannot yet afford a sold flat, to rent 1- or 2-room rental flats. The highly subsidised rental rates for these 1- and 2-room rental flats keep the rent burden low for tenants. This helps them, especially larger families with higher expenses, build up their savings and progress to home ownership when they are ready.

Currently, there are still about 600 public rental households in 3-room rental flats. HDB continues to help these tenants upgrade to home ownership or move on to a smaller rental flat to save on rental expenses. The vacant 3-room flats are then put to alternative use, or conversion to smaller rental flats.

We have a set of eligibility criteria to safeguard rental flats for the truly needy. However, where there are genuine hardship cases, HDB does exercise flexibility, even if they do not fulfill the eligibility criteria.