JTC EXECUTIVE FLATS AND LOW-COST FLATS (Particulars)

Mr Ho Kah Leong asked the Minister for Finance if he will ascertain from the Jurong Town Corporation (i) the breakdown cost; (ii) the selling price; (iii) the floor area; and (iv) the total number of flats built and the occupancy rate, in respect of (a) an executive flat (luxurious type); and (b) a low-cost 5-room flat.

The Minister for Finance (Mr Hon Sui Sen): Sir, I understand from the Jurong Town Corporation that the selling price for the JTC executive flat (luxurious type) is set to cover all costs, whether for construction, land and financing, architectural and engineering fees or administration. I do not think it appropriate that for a luxury type flat where no subsidy from public funds is involved, the JTC should be required to reveal what private sector developers are not expected to do, namely, how the selling price can be broken down into its respective costs. The selling price ranges from $77,000 to $82,800 per flat depending on the floor and orientation. Each flat has a total area of 178.4 sq metres.

Two blocks comprising a total of 1 36 flats have been completed, of which 97 flats have already been sold and 10 rented out mainly to industrialists in Jurong Town. A further eight units are awaiting acceptance by recent applicants, leaving a balance of 22 flats yet to be allocated.

With regard to the second part of the Member's question, I understand that the total cost of a low-cost 5-room flat at Boon Lay Garden is $35,100 of which construction cost accounts for $29,900, land and financing costs $3,400 and architectural and engineering fees. $1,800 and some contribution to administrative costs. The flats are being sold at $35,000 each. Each flat has a floor area of 11 8.7 sq metres.

Six blocks of 360 units were balloted in February this year. Because of a number of rejections, 25 units are still to be allocated. Another three blocks consisting of 1 80 units will be balloted this month, amongst 128 applicants now on the waiting list.

Mr Ho Kah Leong (Jurong): (In Mandarin): Mr Speaker, Sir, I would like to ask the Minister whether Jurong Town should be called a new town or semi-urban? If it is classified as semi-urban or new town, should not the selling price of the 5-room flats be lower?

Mr Hon Sui Sen: Sir, as far as Jurong Town is concerned, the classification that may be applied to low-cost flats elsewhere is not relevant. It is not a new town, nor is it suburban or semi-urban. It is an industrial new town. I think the policies of the Jurong Town Corporation are entirely a matter for the Corporation and do not necessarily relate to other flats elsewhere.

Mr Ho Kah Leong: (In Mandarin): Sir, in its other low-cost housing schemes, the Jurong Town Corporation follows the construction adopted by the Housing and Development Board. I have the HDB's Annual Report with me here. An HDB flat in a new town costs $30,000. The Minister has pointed out that Jurong Town is an industrial new town. So the selling price of the JTC low-cost 5-room flat should not be that high.

Mr Hon Sui Sen: Sir, I have tried to explain that the Jurong Town Corporation is organised on different lines and that the flats are also allocated in a different manner. There is no queueing up as there is in the Housing Board. If there is any adoption of HDB practices or its architectural designs or any other matters relating to housing it is a matter for the Jurong Town Corporation to decide whether they want to adopt these. But they are not required to do so nor are they required to follow the prices which the Housing Board has fixed for their flats. In this particular case I have already given the cost of the 5-room low-cost flats as being slightly over $35,000 and there is no question - in fact, as Minister for Finance. I would be strongly against it - of their trying to sell a $35,000 house for $30,000.

Mr Ho Kah Leong: (In Mandarin): Sir, according to the Annual Report of the Housing Board for 1975/76, the selling price of a low-cost 5-room flat does not include the cost of land and architectural and engineering fees. The cost of each unit is $21,149 and it is sold for $30,000.

The Minister has said that the cost of the JTC flats includes the costs of land, construction, and architectural and engineering fees, and that is why the price is higher. Would the Minister then consider removing the cost of land, construction and architectural and engineering fees, so as to bring the selling price down?

Mr Hon Sui Sen: Sir, the answer is no. I have mentioned that the Jurong Town Corporation is organised on strictly different lines. It is not a housing corporation. It does not have a waiting list of people who are prepared to wait two years.

I do not think it is true that the Housing Board does not recover, on the whole, its land and other costs. In the end, apart from the subsidies which the Government has given, they are supposed to recover all the land and financing costs as well as the administrative costs.