HDB RENTAL FLATS (Number of applications)

Dr S. Vasoo asked the Minister for National Development whether applications for Housing and Development Board rental flats increased in the years 1989 to 1991 and what steps are being taken to meet the housing need of the applicants.

The Minister of State for National Development (Mr Lim Hng Kiang)(for the Minister for National Development): Sir, I am answering on behalf of the Minister for National Development.

The total number of applications for HDB rental flats increased from 2,400 in 1989 to about 5,900 in 1991. This increase in demand for rental flats is largely due to a lowering of the minimum age limit for rental applicants. In 1989, the age limit for rental applicants who apply with a proper family nucleus was lowered from 29 years to 21 years of age. In 1990, the age limit for rental of HDB flats by single persons under the Joint Singles Scheme was also revised to 35 years for both male and female applicants. Prior to the revision, the age limit was set at 40 years for males and 35 years for female applicants.

At present, there are about 4,900 applicants on the waiting list for HDB rental flats. About 1,400 flats are currently available for rental to citizen families. To meet the rise in demand for rental flats, HDB has increased the supply of rental flats. An additional 2,300 flats will be released for rental in the coming months. This will significantly reduce the waiting list for rental flats.

Dr S. Vasoo (Tanjong Pagar GRC): Will the Ministry review the 20% downpayment requirement for new purchase flats so that the problems faced by rental applicants in applying for such flats will be reduced to some extent?

Mr Lim Hng Kiang: The tenancies of rental applicants do not suggest that people are going into rental flats because they cannot afford to purchase flats. That is not the main reason for the increase in number of applications. In any case, the 20% downpayment for purchase flats is not a new requirement. The 20% downpayment has always been a requirement, even under the old waiting list system. So the reason for the increase in number of applications for rental flats is not that people cannot afford to buy flats.