HDB'S RESIDENTS' PRIORITY SCHEME (Selection and balloting of flats in Queenstown)

Mr Chay Wai Chuen asked the Minister for National Development whether he will explain how the Residents' Priority Scheme works in the selection and balloting of new Housing and Development Board flats in the Queenstown area, particularly for residents who have been staying there for decades.

Mr Chay Wai Chuen asked the Minister for National Development if he will state how many residents in the Queenstown area were considered under the Residents' Priority Scheme in the last selection of Housing and Development Board flats in Queenstown and how many of them were successful under the scheme, and how does this compare with the success rate for non-residents applying for flats in Queenstown.

Mr Lim Hng Kiang (for the Minister for National Development): Sir, can I have your permission to take Questions Nos. 24 and 25 by Mr Chay Wai Chuen together with Question No. 8, because they are on the same subject?

Mr Speaker: All right.

Mr Lim Hng Kiang: Mr Chay asked how the Residents' Priority Scheme works and, in particular, how that works in the latest exercise for Queenstown. Dr Vasoo asks whether we should review this system. So I will take these three Questions together.

Under the Residents' Priority Scheme, applicants for new flats in mature estates who have been residing for at least five years in the estate they apply for, enjoy twice the probability of success as non-resident applicants in the ballot for flats. All applications received for a particular flat-type in a particular mature estate, for example, 4-room flats in Queenstown, are classified into resident and non-resident application. The number of 4-room flats available for booking in Queenstown is then divided between the two categories of applicants to ensure that resident applicants enjoy twice the probability of success at the ballot as compared to non-resident applicants. Successful applicants are then invited to select their flats according to their balloted queue numbers. This process is repeated for every flat-type in every mature estate.

In the booking exercise for flats in Queenstown conducted in April 1993, a total of 6,096 applications were received for 338 flats. In other words, 18 applications for every flat available. The 6,096 applications comprised 1,889 applications from residents and 4,207 from non-residents. A total of 161 resident applicants or 8.5% of total resident applicants, and 177 non-resident applicants or 4.2% of total non-resident applicants were successful in their ballot for flats in Queenstown. In other words, resident applicants enjoyed twice the success rate compared to non-resident applicants in the ballot for flats in Queenstown.

Dr Vasoo asks whether we are reviewing the allocation system. The Residents' Priority Scheme is fair as it gives both resident and non-resident applicants a chance of being allocated a flat in a mature estate. Many residents, however, are disappointed that they are unable to obtain a flat in the same estate that they are staying. This is simply because of the limited number of flats available in the mature estates. At present, as I said, residents enjoy twice the probability of success compared to non-residents. If we give residents higher priority, this will mean that non-residents will have less chance. Even if we allocate all the 338 flats in Queenstown in the second Quarter 1993 booking exercise to residents, it will still not meet the requests of the 1,889 resident applicants. The problem is simply one of overwhelming demand compared to a limited supply. If Members have any good suggestion on how we can improve the allocation system in a fair and equitable way, I will be very happy to look at their suggestions.

Dr S. Vasoo (Tanjong Pagar GRC): Sir, is it not urgent, in the light of the re-building programme in the city area, to consider higher priority for residents living in the area so that the network and support system can be maintained, and people will feel less dislocated?

Mr Lim Hng Kiang: We appreciate the need for residents to want to remain in the estate that they are staying in. That is why we give them twice the priority. But at the same time, we have to be fair to non-residents. More importantly, the reason why there is an overwhelming demand is that the flats in the mature estates are very good value for money. So if you exclude non-residents, I think you will not be very fair. So we have struck a balance today by giving twice the priority for residents and I think this is fair to both residents and non-residents.

Dr Kanwaljit Soin: Sir, would the Minister consider giving some priority to upgraders who are young couples with children and want to be in estates where their parents or parents-in-law are living?

Mr Lim Hng Kiang: There are many categories of applicants who desire priority. There is a category who says, "I am upgrading because I have been living in a 3-room flat. Now I want a 5-room flat. Give me priority." There is another category who says, "Give my children priority because they want to live near to their parents." If we create more and more sub-schemes to give priority, there is only this piece of cake and however you divide it, some will enjoy more priority and others will have to lose out. The only way is really to increase the price.

Dr Kanwaljit Soin: Would the Minister consider that since family values are in our national ethos, that should merit more priority than mere upgrading for bigger space?

Mr Lim Hng Kiang: We treasure family ties and we encourage such groups who want to keep their families together to apply for Woodlands where they can get two flats very close to one another and they can get them very, very early.