HOUSING BOARD FLAT TENANTS AND OWNERS (Ownership of private property)

Mr Ho See Beng asked the Minister for Law and National Development whether a person, who is already a tenant or owner of a Housing and Development Board flat, may own property.

Mr E. W. Barker: Mr Speaker, Sir, a tenant of a Housing Board flat who buys private property will have his Tenancy Agreement terminated and be evicted by the Housing and Development Board.

An owner of a Housing Board flat is not at the moment prohibited from purchasing private property. This is because when the Home Ownership Scheme was first started, very few people desired to buy Housing Board flats and the Board wanted to encourage our citizens to do so.

However, the situation has now completely changed. With the introduction of the Central Provident Fund Financing Scheme, more and more contributors to the Fund have taken advantage of the Scheme and registered to purchase HDB flats. As a consequence, there are now more than 80,000 applicants registered to purchase flats. In addition, of course, there are others who want to rent fiats, and most of them will have to wait for some time before being allotted a flat. It is, therefore, considered unfair to allow any Housing Board flat owner to retain his flat if he purchases private property. By "private property," of course, I mean private landed property.

The Board is, therefore, now considering introducing legislation to provide that any HDB flat owner who purchases private landed property must resell his flat to the Board, subject to perhaps certain exceptions, e.g, those owners who inherit property jointly with other beneficiaries.

Mr Ho See Beng (Bras Basah): Mr Speaker, Sir, according to the Minister's reply, the HDB tenant would have no alternative but to give up his tenancy. However, under extenuating circumstances, would the Minister exercise a little bit of flexibility? There is the case of a shophouse tenant who was affected by urban renewal. The Housing and Development Board offered him only a residential flat and so he could not do his business. So he had to buy a shop-house in order to run his business, upon which his family's livelihood depends.

Mr Barker: Mr Speaker, Sir, every case will, of course, be treated on its merits. But in the case cited by the Member for Bras Basah, perhaps I should ask him a question. Why did his constituent not rent a shophouse, instead of buying it?

Mr Ho See Beng: Sir, I think you are more than aware that today it is not so easy to rent a flat. That is why I think this poor fellow was forced to purchase the shophouse, not because he did not want to rent one.

Mr Barker: With your permission, Sir, can I ask another question? Is it not easier and cheaper to rent, surely, than to buy especially if, as the Member said, he is a "poor fellow"?

Mr Ho See Beng: Sir, in the long-term I think it is cheaper to buy than to rent.