RENT OF POSTWAR HOUSES

Mr Ho See Beng asked the Minister for National Development and Communications if he will consider the need to introduce legislation with a view to checking excessive increases of rent by owners of postwar houses, especially those houses built immediately after September, 1947, as there have been instances of rent increases of as much as 200 per cent and tenants have no recourse but to accept the rent increases.

Dr Tan Eng Liang (for the Minister for National Development and Communications): Sir, at present, rentals imposed on tenants of pre-war houses built before September 1947 are regulated under the Control of Rent Act. Rentals pertaining to postwar houses built after that date are not controlled.

Rental of houses depends on supply and demand. With the large number of housing units completed and under-construction by HDB, there is no problem of housing shortage in Singapore. In fact, at the present moment there is a glut of private housing. The Government, therefore, do not intend to introduce measures to control rental of postwar houses.

Mr Ho See Beng: If that is the case, Sir, why does the Senior Minister of State not lift the control of rent on the pre-war houses?

Dr Tan Eng Liang: Sir, my only reply is that pre-war houses and post-war houses are placed in different situations. However, the lifting of control of rent will be considered when the time is right and if the situation warrants it. This is to prevent any hardship that may be caused. For example, if we were to lift the control of these rent-controlled houses, land owners might want to develop their land and there could be thousands of cases requiring immediate housing.

Mr Ho See Beng: I do not agree with the explanation given by the Senior Minister of State. On the one hand, he says that there is a glut of housing, and on the other he says that there will be hardship caused if the rent control regulation is lifted for the prewar houses.

Dr Tan Eng Liang: Sir, we are talking of a glut in private housing now. If a private developer is prepared to resettle all those tenants he intends to move out into his own new private housing estate, then there will be no problem. But in the present circumstances we are assuming that when the developer gives notice to the tenants or sub-tenants to move out, he expects them to find alternative accommodation in the HDB. So there is no contradiction in my explanation.

Mr Ivan Baptist (Potong Pasir): Sir, can it be due to inflation?

Mr Lim Kim San: Sir, the Senior Minister of State has said that the rental of uncontrolled houses depends on supply and demand. One can expect that over the last 30 years most, if not all, landlords would have probably raised the rent of their houses. So the difference here is that those who occupy uncontrolled houses are paying quite a high rent. Those occupying controlled houses are paying a very low rent. Therefore, if we were to lift rent control, thousands of people occupying rent controlled houses would have to pay a very much higher rent. That is the reason why we are retaining rent control on houses built before 1947.

Mr Ho See Beng: Mr Speaker, Sir, I still do not agree with the Minister. The Minister said that pre-war houses are subject to rent control. Since the rent is low, the Minister should allow the developer to increase the rent a little. For the post-war houses which are not subject to rent control, he is saying that the developer could increase the rent as much as he likes. So how does the Minister reconcile his statements?

Mr Lim Kim San: Mr Speaker, Sir, I do not think the Member got what I meant and I, in turn, do not understand him at all.