HDB Studio Apartments

Dr Intan Azura Mokhtar asked the Minister for National Development whether the Ministry would consider allowing the sale of HDB studio apartments to singles below the age of 55 years old.

The Minister for National Development (Mr Khaw Boon Wan): Sir, the HDB Studio Apartments are purpose-built with senior-friendly features. They are sold with a 30-year lease to keep them affordable, while ensuring that the owners have a home in their golden years. They, therefore, do not quite fit the housing needs of young singles.

Dr Intan Azura Mokhtar: Sir, I thank the Minister for the answer. There are residents who have come and approached me, and they are singles without family members, not very well to do, so they cannot quite afford the high Cash-over-Valuation (COVs) of the resale flats or buying a flat from the open market. There is not much option for them, really. What can be done? Can there be Studio Apartments, small apartments with shorter leases for them, instead of just for the elderly, those who are above 55 years old?

Mr Khaw Boon Wan: As I said, Studio Apartments are not quite the option because they were really not designed for such young singles, and also because the Studio Apartments are already on very short leases, of 30 years, which are quite appropriate for retirees. For young singles, I am not quite sure whether that is appropriate. Of course, as I have explained in this House two sittings ago, there is a wide range of potential house buyers. Housing is a very complex problem. I have to approach this problem systematically. I have to set priorities. In due course, I would be able to address all the various segments. But I decided to zero in for the first 12 months of my term on the first timers. I think we are delivering some results, which now allow me, as I blogged about last night, to for the next 12 to 24 months focus on the second timers. That itself is another very big group, with a wide range of needs and differing needs. It is a subject that is now occupying my mind. In due course, I will tackle the other buyer groups, for example, the singles, too.

Page: 1015

Mr Hri Kumar Nair (Bishan-Toa Payoh): Mr Speaker, a supplementary question. Would the Minister agree that Studio Apartments represent a very good option, probably the best option, for elderly residents to monetise their current flats? Sell their current flat, buy a Studio Apartment and have a decent amount of balanced proceeds to retire on. And if that is the case, would he be stepping up the construction of Studio Apartments?

Mr Khaw Boon Wan: Indeed, last Sunday, in one of my MPS cases, there was such an elderly gentleman. A retiree, living in a 5-room flat and a widower. So, he is all alone and he decided to just sell the 5-room flat, apply for a Studio Apartment, and he will have some cash which he can then keep for his retirement. So, that certainly is a good option. It is not the only option for seniors but MND offered this option which I think can be quite attractive for some of these seniors. We intend to expand it. I have been looking at the application rates for the Studio Apartments – quite good, quite healthy, not overly subscribed, but well taken up, practically 100%. So far, we have launched 6,000 units. Last year alone, we launched 2,300 units. This year, I will continue to press on.