Planning for Housing According to Population Changes and Demands

Mr Teo Siong Seng asked the Minister for National Development (a) what is the projected increase in both our population and housing demand in the next five to 10 years; (b) what are the plans of HDB and URA to meet such projected demand in both public and private housing; and (c) what planning guidelines are set in respect of the sizes of private housing units, particularly shoebox apartments, that may distort market demand and fail to meet the basic housing standard for an average Singaporean setting up a family.

Mr Khaw Boon Wan: Over the past five years, our population grew by 3% per annum on average. In response to the commensurate rise in housing demand, the Government has been ramping up the supply of both public and private housing.

For example, in the public sector, we have the resources and the capacity to build more than 100,000 HDB flats during this term of Government, if necessary. In the private sector, we have increased the supply of sites released via the Government Land Sales (GLS) Programme.

As a result of the ramp up in housing supply, most first-timers earning below $10,000 a month now have a chance to select a BTO flat if they apply for one. There is also an ample supply of private housing to meet demand. The current pipeline supply of 86,000 units is at a record high. Of this, there are about 38,000 unsold units.

Looking ahead, the Government will continue to monitor and manage population growth. As part of this process, National Population and Talent Division (NPTD) is engaging the public in preparation for the White Paper on Population to be released by the end of the year. We will then refine our housing development programme to ensure that the supply can meet the projected demand.

As for the size of housing units, residents have different housing needs and budgets. Smaller housing units add to the range of housing options available and could cater to singles, expatriates, or retirees who do not need large apartments. So far, URA does not stipulate an absolute minimum size for residential units so as to give developers flexibility to cater to demand from different market segments. Our key concern is to ensure that the quality of the living environment is not compromised. Where necessary, URA will guide developers to improve the overall design, layout and quality of their residential development proposals.

Currently, shoebox apartments form 1.2% of our total private housing stock. They are clearly not suitable for families with children. Most investors of these units presumably intend to rent them out to singles or expatriates. We make available information on the upcoming supply and other projections. It is up to the developers and the investors to decide if they wish to invest in this segment of the housing market.

We are, nevertheless, closely monitoring the trend of shoebox apartments in Singapore.

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