HDB RENTAL/PURCHASED FLATS (Income ceilings)

Dr S. Vasoo asked the Minister for National Development whether the income ceilings set for the application for Housing and Development Board rental or purchased flats will be reviewed.

The Senior Minister of State for National Development (Dr Lee Boon Yang) (for the Minister for National Development): Mr Speaker, Sir, the income ceiling for purchase of HDB flats was reviewed recently in 1989. Since 11th August 1989, the income ceiling for flats purchased directly from HDB has been raised from $4,000 to $5,000 per month for a nuclear family and from $6,500 to $8,000 per month for an extended family. Based on the Labour Force Survey, 90% of the households in Singapore would qualify to purchase HDB flats directly from the Board with the latest revised income ceilings. HDB has also lifted the income ceiling for purchase of HUDC and resale HDB flats in the open market. There is no need to revise the income ceilings for purchase of HDB flats in the immediate future.

Sir, the income ceiling for rental flats to Singapore citizens is currently set at $800 per month and a subsidised rental is charged. Rental flats are for citizens in the lower income groups who cannot afford to purchase home ownership flats. Households with incomes of more than $800 per month should be able to afford the monthly instalment payment for a 3-room flat in the New Town zone, and are encouraged to purchase their own flats. HDB, however, does exercise flexibility to allow Singapore citizen families with household incomes that slightly exceed the $800 ceiling to also rent flats. These cases are considered on their individual merits.