RENTAL AND SALE FLATS (Waiting time)

Encik Mansor Haji Sukaimi asked the Minister for National Development what was the average waiting time for the allocation of rental and sale flats during the year 1981; and whether the waiting time will be reduced and, if so, what is the extent of reduction and the reasons why the reduction is possible.

Mr Lee Yock Suan (for the Minister for National Development): Mr Speaker, Sir, in 1981, the average waiting time for 1- and 2-room rental flats was about 1 to 1 1/2" years and that for 3-room rental flats was 5 to 6 years. The average waiting time for sale flats was 3 1/2 to 4 years.

The waiting period for rental flats is expected to increase to 1 1/2 to 2 years for 1-and 2-room units, and 7 to 8 years for 3-room units. On the other hand, the waiting period for sale flats is expected to shorten to 2 to 3 years after the backlog has been cleared.

The Government's policy is to encourage home-ownership of flats. In line with this policy, the HDB has stopped construction of new rental flats. Applicants for rental flats will be allocated flats only when tenancies of existing flats are terminated. The waiting time for 3-room rental flats is very long because the supply of such flats is declining as more sitting tenants buy over these flats. Applicants who wish to stay in 3-room flats are encouraged to buy rather than rent them. In view of the shortage of 3-room rental flats, the HDB has closed its 3-room rental register on 9th September, 1982.

The waiting period for sale flats is expected to shorten to 2 to 3 years because the HDB has accelerated its building programme and expects to complete 140,000 units of flats between 1982 and 1985. Various measures have been taken to speed up construction, including the introduction of prefabricated housing.

Encik Mansor Haji Sukaimi: Mr Speaker, Sir, in estimating the reduction of waiting time in regard to the sale of flats, has the Minister of State taken into account the number of future resettlement cases that are likely to be given priority in flat allocation? And will this not lengthen the waiting time of the non-resettlement cases?

Mr Lee Yock Suan: Sir, the answer is yes, the resettlement cases have been considered. But the point I want to make is that this is only possible after the present abnormal situation with a very long waiting list of 108,000 applicants has been cleared. After that has been achieved sometime in 1984-85, then we should revert back to normal. Members may recall that in the past the waiting period was as short as two years, or three years in some cases.

Encik Mansor Haji Sukaimi: Sir, I wish to thank the Minister of State for his clarification. He has indicated that he anticipated a reduction to about two or three years' waiting time. I will go down to my Constituency and tell my constituents, "Don't worry about waiting because the waiting time will be reduced." But if it turns out that it can be lengthened because of resettlement cases, then I will have a difficult time explaining to my constituents. Can the Minister help us in this matter, so that when we tell them that the waiting time shall be reduced, it shall be two years, 5% either way?

Mr Lee Yock Suan: Mr Speaker, Sir, I can only say that, of course, the HDB is doing its best to resolve the housing problem. The Member's question was whether this figure takes into account the resettlement cases. My answer is yes. But I cannot promise him that we will achieve everything because it depends on the rate of construction and so on. But the HDB will definitely do its best to cut down the waiting period.

Dr Augustine H.H. Tan (Whampoa): Sir, is the Minister of State aware that there are some people who do not qualify for 1 - or 2-room rental flats? At the same time they do not have enough CPF funds to purchase 3-room flats, and this category of people will have to wait seven to eight years before they can get a rental flat.

Mr Lee Yock Suan: Sir, this question has been dealt with previously and reported in the press. I think my Minister has clarified that, from the records, people who apply for 3-room rental flats, in fact, have an average income of about the same as those who buy 3-room flats. Some of the applicants who buy 3-room flats also do not have CPF. But it is a matter of self-discipline for these people. Many of them are hawkers and taxi drivers who fritter their money away. Our policy is really to try to encourage this group of people to save, and it is in their long-term interest to buy their own flat. Basically the Government is promoting home-owner-ship. So we have to adopt this policy. If these people are willing to save, they will be able to afford a 3-room flat.

Dr Augustine Tan: Sir, would the Minister of State relent by allowing this category of people to rent 1- or 2-room flats?

Mr Lee Yock Suan: Sir, the income ceiling for 1- and 2-room rental flats has already been raised, I think, from $500 to $800 and those applicants on the 3-room rental flats waiting list have been allowed to switch from 3-room to 1- and 2-room flats. 3.30 p.m.

Pursuant to Standing Order 21 (2), Written Answers to Questions Nos. 13-22 remaining on the Order Paper are reproduced at the section 'Oral Answers to Questions Not Reached' (Cols. 313-26).