RENTAL SCHEME FOR HDB FLATS (Review)

Dr S. Vasoo asked the Minister for National Development whether there are plans to review the rental scheme for Housing and Development Board flats.

Mr Dhanabalan: Mr Speaker, Sir, my Ministry and the HDB are finalising a review of HDB rental housing policies. The key objective remains to encourage and assist as many HDB flat tenants as possible to own their flats. At present, 80% of the population live in owner-occupied flats. Only 8% of the population, or 52,000 families, reside in HDB rental flats. With some further assistance, more tenants will be able to own their own flats. HDB is currentlyworking out various measures to facilitate this.

Despite Government's efforts to encourage and assist citizens to own their flats, there will remain a small number of families who will continue to need rental housing. The majority of rental tenants are housed in 1- and 2-room units built in the 1960s and 1970s. Some of the 1-room rental flats are obsolete and will be gradually phased out. The physical standards and quality of rental flats to be retained will be improved. This will be done, together with the upgrading of owner-occupied blocks, under HDB's Upgrading Programme.

HDB is also considering a Transitional Rental Housing Scheme to cater to the needs of Singaporeans who need short-term rental housing. Such a Scheme will enable young couples who wish to set up their own families, and those awaiting completion of their home-ownership flats, find interim housing. The Scheme will be restricted to citizen families who are not existing HDB tenants and lessees, or not owners of private properties. Rental will be at market rates.

Full details of the various changes affecting HDB rental tenants will be announced in due course.