HOUSING AND DEVELOPMENT BOARD FLATS (Revision of limits of incomes for eligibility to purchase)

Mr Eric Cheong Yuen Chee asked the Minister for Law and National Development if he will ascertain from the Housing and Development Board whether the Board will consider revising the limits of individual and total family incomes, at present $800 and $1,000, respectively, for eligibility to purchase the Board's flats, in the light of the recent amendment to the Central Provident Fund Ordinance raising the maximum of contributions to the Fund to encourage workers to become home owners.

Mr Barker: Mr Speaker, Sir, Government's policy in respect of the home ownership scheme is to limit the income level of the applicant to $800 per month in the case of individual incomes and $1,000 per month in the case of joint family incomes. Those earning above these limits are considered to be reasonably well off and their housing needs should be catered for by private developers. The income restrictions, however, do not apply to sitting tenants who may wish to use their Central Provident Fund balances to purchase the flats they now occupy.

With the recent implementation of the amendments to the Central Provident Fund legislation and the reduction in the deposit requirements for the purchase of flats, more families in the lower income group will be able to purchase a home of their own. For the time being, therefore, the Government feels that it should not revise the income limits to which I referred.