HDB LAND REVERTED TO GOVERNMENT (Effects on public housing programme)

Dr Koh Lip Lin asked the Minister for National Development (a) what is the acreage of land which the Housing and Development Board will revert to the Land Office with the scaling down of its public housing programme in the next 5 years; and (b) how the HDB will project the demand for its flats in the light of its revised housing programme.

Dr Lee Boon Yang (for the Minister for National Development): Mr Deputy Speaker, Sir, on behalf of my Minister.

Before 1st April 1985, HDB acted as Government's agent and acquired and held land for its own use in future and in some cases for release to other Government agencies. Since 1st April 1985, all undeveloped land was handed over to the Government. Only 7,000 hectares of land were returned to the Government. In FY 85/86 and FY 86/87, the HDB purchased about 1,300 hectares of land from the Government for its public housing and related developments. The return of land to Government is not the result of HDB scaling down its construction.

The projected gross demand for HDB flats takes into consideration applicants on its waiting list, households affected by clearance or redevelopment, formation of new households, and those upgrading to bigger flats.

HDB works out its projected net demand after deducting the stock at hand, works-in-progress, and flats likely to become available when households upgrade to bigger flats.

In the long term HDB will move in the direction of requiring some form of prior commitment from purchasers before starting actual construction of flats. This will help the Board to forecast demand more accurately.