HOUSING AND DEVELOPMENT BOARD (Building of executive flats and maisonettes)

Mr Chng Hee Kok asked the Minister for National Development if the Housing and Development Board will review its policy of building executive flats and maisonettes in view of the popularity of private developments of similar apartments.

Mr Lim Hng Kiang (for the Minister for National Development): The current high demand for private residential properties has in fact widened the price gap between HDB Executive flats and private apartments. For example, the price for an Executive flat in Tampines New Town is about $1,500 per square metre, which is less than half of the price of about $3,500 per square metre for a private apartment in the Tanamera condominium development nearby. Some Singaporeans may thus find themselves in a position where they wish to and can afford to upgrade to something better than a 4- or 5-room flat but find private apartments beyond their reach. HDB Executive flats, which are priced at a very affordable level, serve to meet the aspirations of this group of Singaporeans.

Despite the popularity of similar private apartments, the ratio of supply to demand for Executive flats under the Booking System has remained at about 1:5 for the last three quarters. This sustained high demand for Executive flats shows that there is a segment of Singaporeans who still prefer, or can only afford, HDB Executive flats. HDB will thus continue to build to meet this demand, so as to provide Singaporeans with more choices in housing.

Mr Chng Hee Kok: Mr Speaker, Sir, seeing the gap between the prices of private housing and HDB Executive flats, does it not lead to a situation whereby there will be more applicants in future looking for Executive flats as a result of the higher subsidy?

Mr Lim Hng Kiang: We build according to demand. And if there is indeed a growing segment, we will have to adjust the building programme accordingly. But at the same time, we are releasing more and more land for private apartments. So the prices for private apartments ought to come down when the new supply comes into the market.