HOUSING AND DEVELOPMENT BOARD BALLOTING EXERCISE (Number of applicants and flats)

Mr Chng Hee Kok asked the Acting Minister for National Development, in the latest Housing and Development Board balloting exercise, if he will state the number of (i) first-time applicants; (ii) applicants upgrading to larger flats; and (iii) flats available.

The Senior Parliamentary Secretary to the Minister for National Development (Mr Matthias Yao Chih) (for the Acting Minister for National Development): I have the numbers for the second quarter for this year. The third quarter's numbers are still being processed. In the second quarter 1994 booking exercise held in April this year, HDB received a total of 91,939 requests for a total of 8,422 flats located in both mature and non-mature estates. Of the total requests, 41,646, or 45%, were from first-time applicants and the remaining 50,293, or 55%, were from those who have bought a flat from HDB directly before.

Mr Chng Hee Kok (Tampines GRC): Sir, how will the Government favour first-time house owners over those who are upgrading from a HDB flat and who have already taken advantage of the Government's subsidy? In other words, how does the Government favour the first-time house owners in this exercise?

Mr Matthias Yao Chih: Sir, under the existing balloting system, first-time applicants are favoured in that within four to five ballotings, they will be given a number whereby they can come to HDB and select a flat. They may not actually select a flat, but they will be asked to select one within four to five ballotings.

Mr Chng Hee Kok: But due to the big gap between the supply and demand in any balloting exercise, there is no assurance that first-time house owners, no matter how many times he ballots and if he is very unfortunate, he will not get his flat. How does the Government ensure that he will get his flat at some point in time?

Mr Matthias Yao Chih: Sir, HDB is reviewing the balloting system. We want to try to change the system in such a way that there is greater assurance to such first-time buyers so that they will be getting a flat within a certain time frame.

Dr Wang Kai Yuen (Bukit Timah): Sir, may I get clarification from the Senior Parliamentary Secretary as to how long an upgrader will have to wait before he gets his flat? From the figure given yesterday, I understand that HDB is building 30,000 flats a year and every year, 26,000 new families are being formed. If we were to give priority to the new families, then every year there is only a surplus of 4,000 flats available. And in his reply this afternoon, he said that there are 50,000 upgraders. So if you take 50,000 and divide by four, you are talking about 12 years. Maybe some of those upgraders would have died before the flats are allotted to them.

Mr Matthias Yao Chih: Sir, indeed that would be the case if HDB chose the system where every first-time applicant will get his flat straightaway when he applies. I do not think that is a good solution. We are looking at the various formulas and reviewing what we should do and, in due course, we will announce the new system.