REDUCED DOWN PAYMENTS FOR HDB FLATS (Success of scheme)

Mr Chng Hee Kok asked the Minister for National Development how successful is the scheme of reduced down payments in attracting new and existing applicants for Housing and Development Board flats since it was implemented on 23rd December, 1985.

Mr Teh Cheang Wan: Mr Speaker, Sir, the scheme of reduced downpayment to assist the lower income families to purchase HDB flats has attracted 2,379 new applicants since its implementation on 23rd December 1985. In addition, another 71 existing applicants have also applied to purchase their flats under the scheme.

Mr Chng Hee Kok (Radin Mas): Sir, this appears to be a very small percentage of the total number of 80,000 to 90,000 who are living in rental flats. Will the Minister consider relaxing the scheme on qualifying rules further so that more people can take up the scheme? Presently, the the number living in rental flats is still very high. We are talking about 2,000 applicants for purchase flats against 80,000 to 90,000 rental flats. Does it not mean that the scheme should be relaxed further?

Mr Teh Cheang Wan: Sir, there is a continuous upgrading of the tenants in HDB flats on their own. Every year about 8,000 to 10,000 tenants staying in rental flats move up to become home owners. This is a continuing process. So the additional concession is to help those who find difficulty in putting up the downpayment of 20% to purchase flats. This scheme is to help those who want to become home owners but who have only a small saving for their deposit.