PUBLIC RENTAL SCHEME

PUBLIC RENTAL SCHEME

2.

Mr Baey Yam Keng asked the Minister for National Development (a) what is the number of rental flats available under the Public Rental Scheme each year over the last 10 years; (b) what is the number of eligible applicants for public rental flats each year over the last 10 years; (c) what is the average number of public rental flat tenants per year who do not renew their leases for the last 10 years and their main reasons for not doing so; and (d) in addition to the 2,194 new rental flats announced recently, what plans does the Ministry have to address the increasing demand for public rental flats.

Mr Mah Bow Tan: The number of rental flats available under the Public Rental Scheme decreased from 4,600 in 1998 to 1,070 in 2007. This is due in part to the low turnover of tenants. From 1998 to 2007, the number of flats returned to HDB dropped from 4,700 in 1998 to 1,600 in 2007. The flats were returned to HDB mainly because the tenants had purchased homeownership flats, passed away or infringed tenancy conditions.

The number of eligible applicants for public rental flats has increased from about 2,300 per year (before 2003) to 4,700 in 2007. The increase is due mainly to the raising of the income ceiling for applicants from $800 to $1,500 in 2003. There has also been an increase in the number of divorcees, elderly households and second-timer households (ie, those who have previously enjoyed housing subsidy through purchase of HDB flats) applying for rental flats in recent years.

To address the increasing demand for rental flats, HDB has adopted a two-pronged approach:

(a) Increase Supply . HDB has earlier announced plans to provide an additional 2,200 new rental flats. It will continue to review the rental flat supply to meet the housing needs of low-income families without other housing options.

(b) Manage demand . Even as we increase the supply of rental flats, we cannot provide a rental flat for every person who wants it. Given the heavy subsidy involved, demand for HDB rental flats will invariably exceed the supply. HDB will therefore be reviewing the Public Rental Scheme eligibility criteria to ensure that our heavily subsidised rental flats are targeted at those who are genuinely poor and without other housing options. More details will be announced when ready.