HDB DESIGN-AND-BUILD SCHEME (Progress)

Dr Toh Keng Kiat asked the Acting Minister for National Development whether he will give an update on the progress of the Housing and Development Board design-and-build scheme.

Mr Matthias Yao Chih (for the Acting Minister for National Development): Mr Speaker, Sir, the design-and-build scheme was launched in 1991 to provide a greater variety in housing design. Under the scheme, the HDB sets aside land within its new towns for private architects, engineers and contractors to design and build public housing. To-date, HDB has awarded seven design-and-build contracts to the private sector. Five of these have already been offered for booking. Two are located in Tampines, two in Chua Chu Kang and the latest offered in the July booking exercise is situated in Jurong West.

The response to the design-and-build flats has been very good. For example, the ratio for applications to the flats available for Chua Chu Kang in the April exercise was nine times. The seven design-and-build contracts awarded so far are now at various stages of construction. The earliest to be completed is the first contract in Tampines which will be ready by the end of this year. When all the seven contracts are completed, they will yield a total of 4,643 flats. HDB plans to build 10% of its new flats under this design-and-build scheme.

Dr Toh Keng Kiat: Sir, if I may ask the Senior Parliamentary Secretary, what have been the problems raised by people involved in this scheme? In particular, has there been any complaint about the adequacy of time given for completion of a project? I have spoken to one or two people involved in this and they said that ---

Mr Speaker: Order. No speeches. Please ask your question.

Dr Toh Keng Kiat: Sorry, Sir. In particular, as I said, the adequacy of time allowed for the completion of the project.

Mr Matthias Yao Chih: Sir, this is a new scheme and the designers and contractors are learning how to work within HDB's requirements and framework. There are private sector practices which differ from public sector practices. As the hon. Member knows, there is a long waiting list for HDB flats and naturally, HDB would like the flats to be completed fast so that all the applicants can get their flats early.

Mr Chng Hee Kok: Sir, in view of the fact that land is being tendered out by the HDB to the private sector, is it necessary for us to continue with this design-and-build scheme?

Mr Matthias Yao Chih: Sir, we will look at the scheme as we go along. The design-and-build flats are, on average, more expensive than the flats designed and built by the HDB. Therefore, we would like to continue to give a choice of good, functional and affordable flats built by public sector architects. And for those who wish to have more elaborate designs built closer to private sector standards, they can choose the design-and-build flats. HDB intends to have 10% of such flats under this scheme. But if there is demand, HDB can always increase it to a higher percentage.

Mr Chng Hee Kok: Sir, the Senior Parliamentary Secretary misunderstood me. I said that in view of the fact that we are already tendering out land to the private sector, maybe we should abolish this scheme completely. There is really no need to increase the percentage of flats built under this scheme.

Mr Matthias Yao Chih: I do not understand. Is the hon. Member suggesting that we abolish the design-and-build scheme?

Mr Chng Hee Kok: Yes.

Mr Matthias Yao Chih: And what do we do?

Mr Chng Hee Kok: The design-and-build scheme has both features of cheap land and good design by the private sector. Naturally, it encourages a very high demand. In view of this, do you not think that it is high time we started to move away from this? This land can be tendered out to the private sector.

Mr Matthias Yao Chih: Sir, certainly, we will consider this suggestion. What will happen is that when we tender land like URA parcels being tendered out and developers develop the pieces of land into condominiums and price them according to private sector prices, then that would not be public housing any more. The choice will still be between HDB-designed flats and condominiums.

Mr Chiam See Tong: Sir, the Senior Parliamentary Secretary says that the design-and-build flats are more expensive. Does that mean that, relatively speaking, these flats are more costly for the HDB to build?

Mr Matthias Yao Chih: Relatively speaking, yes. Because the private sector architects will incorporate better finishes, more elaborate designs and therefore the cost of these flats will be higher.

Mr Chiam See Tong: Is that the reason why the HDB is limiting the design-and-build flats to only 10% and not to increase it to a higher percentage?

Mr Matthias Yao Chih: We are looking at the demand. So far, there is a good demand for design-and-build flats, so is there a good demand for HDB design-and-build flats. We will look at the balance and see what is a better formula. At the moment, it is 10%. The flats have not been completed. Nobody has moved into any of them yet. So we still do not know.

Mr Chiam See Tong: In principle, is the HDB willing to give more work to the private sector in regard to building public housing?

Mr Matthias Yao Chih: In principle, yes.