APPLICATIONS FOR HDB FLATS (Number of withdrawals and changes to smaller units since price increase)

Mr Ng Kah Ting asked the Minister for National Development if he will ascertain from the Housing and Development Board (i) how many applicants have withdrawn their applications for flats; and (ii) how many applicants have changed their applications from 5-room to 4-room or from 4-room to 3-room flats, since the increase in prices of HDB flats as well as the requirement to pay 20% down-payment upon application (pertaining to HUDC flats).

The Minister for National Development (Mr Teh Cheang Wan): Mr Deputy Speaker, Sir, during the period 17th May to 30th June 1981, 260 applicants changed their applications from bigger to smaller flats. Twenty of them changed from executive flats to 5-room flats; 70 from 5-room to 4-room or 3-room flats; and 170 from 4-room to 3-room flats. These 260 applicants represent only 0.28% of the waiting list of 94,400 as at 30th June 1981. It shows that the overwhelming majority of applicants can afford the new prices.

Over the same period, 129 applicants cancelled or withdrew their applications. This is, in fact, lower than the average of 150 cancellations over a normal period of 1 1/2-months.

The Housing and Development Board cannot ascertain with complete accuracy the ability of applicants to afford flat prices based on the income declared in the application form. Invariably, the applicant's ability to pay would be under-estimated as there may be extraneous sources of finance, such as financial support from parents, or brothers and sisters, or from accumulated personal savings.

The purpose of imposing a 10% downpayment on HUDC applicants is to weed out non-urgent or marginal applicants. Since the imposition, 1,543 applicants, representing 22% of the HUDC waiting list, have been weeded out.

Mr Ng Kah Ting: Mr Deputy Speaker, Sir, would the Hon. Minister for National Development agree with me that those 260 applicants who have changed their applications from bigger to smaller flats should not lose their priority as such?

Mr Teh Cheang Wan: Sir, their priority will not be adversely affected as they will be allowed to retain their registration numbers.