HDB RENTAL FLATS (Demand)

[Mr Speaker in the Chair]

Dr S. Vasoo asked the Minister for National Development whether applications for rental flats increased significantly in 1991 and 1992, and whether there are adequate rental flats to cater to the increase in demand.

The Minister of State for National Development (Mr Lim Hng Kiang) (for the Minister for National Development): Mr Speaker, Sir, the total number of applications for HDB rental flats increased from 2,400 in 1989 to about 5,900 in 1991 and 1992.

As I have explained to this House last year, the increase in demand for rental flats is largely due to the 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 to 21 years of age. In 1991, the age limit for rental of HDB flats by single persons, under the Joint Singles Scheme, was lowered from 40 years for males, and 35 years for female applicants, to 35 years for both male and female applicants.

I am happy to say that, despite the rise in demand for rental flats, HDB has succeeded in maintaining the number of applicants on its waiting list at a steady level of around 3,000 by releasing more flats for rental. At present, there are about 3,100 applicants on the waiting list for 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 700 flats will be released for rental in the coming months. HDB will endeavour to keep the waiting time for rental flats as short as possible.

Dr S. Vasoo (Tanjong Pagar GRC): Sir, are there any plans to upgrade, parti- cularly, the 1-room flats so that the environment will be made more palatable?

Mr Lim Hng Kiang: Both 1-room and 2-room flats which are located in the precincts earmarked for either the Demonstration stage or the steady state phase of the upgrading programme have been included in the upgrading.

Mr Loh Meng See (Kampong Glam GRC): Sir, may I know from the Minister where does he get the supply of available flats for rental? The other question is: How long do the applicants have to wait before they are allocated the rental flats?

Mr Lim Hng Kiang: For some time now, since the mid-80s until 1989, the demand for rental flats has been reducing. As a result, there was an increasing number of vacancies in many of the rental blocks resulting in some security problems, especially when the vacancies reached levels of 30-50%. For blocks which are more than 50% vacant, we conduct a relocation exercise to move the tenants to other blocks which are occupied. With this increase in demand, blocks which have been mothballed for demolition are now put back on the market.

On the average, applicants would wait about nine months before they are allocated a flat. This is because many of the applicants are quite particular about the location of the flat. If they are prepared to accept the 1-room flats in less prime locations, they can be allocated their flats earlier.