HOUSING AND DEVELOPMENT BOARD FLATS (Purchase by owners of private properties)

Mrs Yu-Foo Yee Shoon asked the Minister for National Development, in view of the fact that Housing and Development Board flat owners are allowed to invest in private properties as long as they reside in their HDB flats, whether the HDB will allow Singaporean owners of private properties to purchase HDB flats without residing in the flats.

Mr Lim Hng Kiang (for the Minister for National Development): Mr Speaker, Sir, in land-scarce Singapore, public housing has to be strictly for owner-occupation. Those who buy their flats direct from HDB are required to reside in the flats. They are allowed to own private residential properties for investment purposes only after they have completed the 5-year occupation period. Similarly, a private residential property owner who buys a resale HDB flat from the open market must thereafter reside in the HDB flat.

We cannot allow private property owners to purchase HDB flats without residing in the flats. This will only encourage speculative demand for public housing, and deprive those who are in real need of public housing from owning HDB flats. It would defeat the very purpose of providing public housing in the first place. So we would like to maintain the principle of owner-occupation in HDB flats.

Mrs Yu-Foo Yee Shoon (Yuhua): Sir, does the Minister not feel that a more equitable policy is to allow our people the choice of either residing in the HDB flat and renting out the private apartment or residing in the private property and renting out the HDB flat? Is there a difference between the two alternatives since the resale of HDB flats occurs only when the flats are no longer needed by their owners and resale prices are determined by market forces without Government subsidy?

Mr Lim Hng Kiang: Sir, I think there is a big difference. First, the principle is that the HDB flat is meant as public housing and it must be owner-occupied. If you allow HDB flats to be open for purely investment purposes, I think the demand will be very much greater than today. Today, we must build flats for Singaporeans who want to reside in HDB flats.