UNSOLD HDB FLATS (Particulars)

Dr Wong Kwei Cheong asked the Minister for National Development (a) how many completed Housing and Development Board flats were unsold as at the latest convenient date; (b) how many of them had been unsold for more than one year; (c) what is the total cost of all these unsold flats; (d) what plans the HDB has to sell the flats; and (e) what is the number of new flats to be built in 1987.

The Minister for National Development (Mr S. Dhanabalan): Mr Speaker, Sir, as at 31st January 1987, the Board had a total of 21,939 completed flats which remained unsold. The waiting list as at the same date was 62,198. The breakdown into flat types are given in a Table (Cols. 103 - 104) that has been distributed to Members. Table - UNSOLD HDB FLATS AS AT 31 JANUARY 87 (Cols. 103 - 104)

Except for 3-room and 4-room Simplified flats, demand on the waiting list exceeds the number of unsold flats. They are therefore in the process of being sold. In the case of 3-room and 4-S flats, because of past high demand, HDB accelerated the construction of these flats to shorten the waiting time. However, when the flats were under construction, demand for such flats dropped resulting in the present high vacancy rates. Of the total unsold flats, 13,430 units have been unsold for more than a year. These are mainly the 3-room and 4-S flats located in New Towns such as Yishun.

The total cost of the 21,939 unsold flats is about $1.66 billion. Of this cost, that which is attributable to 3-room and 4-S flats is about $980 million. Experience shows that the take-up rate for vacant flats which are mainly in new town zones would initially be low. This is due to the fact that new town infrastructural and transport facilities are less developed compared to established estates. There are plans to improve the transportation network for the residents in these new towns. HDB will also speed up the building of other infrastructural facilities. With these measures, the HDB anticipates that the unsold flats will be taken up in due course.

The number of flats to be built in 1987 is about 32,000. The HDB is not building any more 3-room and 4-S flats.

Dr Wong Kwei Cheong (Cairnhill): Sir, may I ask the Minister if the unsold flats, especially those that are unsold for more than a year, have been over-priced, and will the Ministry consider reducing those prices according to market demands?

Mr Dhanabalan: Mr Speaker, Sir, it is a matter of opinion whether they are over-priced. The real reason why the 3-room flats are not being taken up at the rate at which we anticipated is that Singaporeans' expectations of the kind of house that they should have has gone up. At that time, when the 3-room and 4-S flats were built they were really meant to try and cater for those whom we felt would not be able to afford the normal 4-room and 5-room flats. But as it turned out, incomes went up to a point where many who would have previously gone only for the 3-room or 4-S flats have registered for the 4-room Improved and the 5-room flats. But we are quite confident, Mr Speaker, Sir, that the 3-room flats will be taken up in due course even at the present prices.

Mr Jek Yeun Thong (Queenstown): Sir, since the Government is encouraging the people to have more babies now, the likelihood of these 3-room flats being unsold will be greater. Is it not a good point for the Ministry of National Development to try to convert these 3-room flats into, say, 6-room flats so that more babies could be accommodated?

Mr Dhanabalan: Mr Speaker, Sir, the Housing Board has, in fact, looked into the question of converting some of these 3-room flats, not for the reason that the Member for Queenstown mentioned, but because the demand for 4-room improved flats is greater than we had anticipated. Not all the flats can be converted because of design restrictions and also because some of the vacant flats are in blocks which have already been sold. You cannot convert partially vacant blocks. Some of the blocks have been converted, such that two 3-room flats have been converted into one 4-room flat and one small 1-room or studio apartment which can be occupied by the parents of the family in the adjacent flat. We do not know whether the demand for this type of flats will be sufficient to warrant conversion of all the blocks but we will study the situation as we go along and decide how conversion should be done.

Mr Tang See Chim (Chua Chu Kang): Sir, would the Government be prepared to consider allocating these 3-room flats to single person resettlement cases?

Mr Dhanabalan: Mr Speaker, Sir, the present occupancy per HDB flat is already below what we have planned when we planned for the housing of Singapore over the next 50 to 60 years. To allocate one 3-room flat to a single person will mean that the average occupancy per flat will go down further and we just do not have space in Singapore to build flats to accommodate single persons in flats of their own. The present policy, even for 1-room flats, is to ask two single persons to join together to occupy a 1-room flat. If we think that we do not have land to even allocate one single room flat to a single person, the question of a 3-room flat for a single person does not arise.

Mr Tang See Chim: Mr Speaker, Sir, would the Minister confirm that some of these 3-room flats have been vacant for more than a year and, if so, why not allocate them to single person resettlement cases?

Mr Dhanabalan: Mr Speaker, Sir, in my answer to the main question, I did say and give figures of the flats that have been vacant for more than one year. I think we should not allow the present situation to change a basic policy. When we find in a year or two that demand goes up, we may find that we have made the wrong decision. It is best that we stick to the basic policy. The basic policy and the basic facts are these. We do not have land in Singapore to house people in a manner where one person can occupy a 3-room flat. That we cannot run away from, and I think we should stick to a policy that makes maximum and optimum use of our land. Even though there is a temporary over-supply of 3-room flats, we should stick to the policy and not allocate to single persons.

Mr Tang See Chim: Mr Speaker, Sir, does the Minister know that these single persons are resettled not out of their own volition and does he think that it is better to leave the flats unoccupied rather than allocating them to these single person resettlers?

Mr Dhanabalan: Mr Speaker, Sir, I think in the long term interest of Singapore, it is better to leave the flats unoccupied for a short period.

Mr Tang See Chim: What does the Minister think that these single persons should do in the meantime when they are being resettled?

Mr Dhanabalan: Mr Speaker, Sir, the Member knows the various avenues open to such single persons. They can join up with another person and apply for a 1-room flat or if the person is considered a senior citizen (in the case of males over 50 years and in the case of females over 40 years) two such persons can get together to buy a flat. There are various avenues open to them.

Mr Tang See Chim: Does the Minister appreciate that these single persons have been happily minding their own farms until the Government resettles them?

Mr Dhanabalan: Mr Speaker, Sir, if we had allowed people to happily mind their own business, Singapore would not be what it is today.