HDB EXECUTIVE FLATS AT SERANGOON AVENUE 2 (Inclusion in balloting exercise)

Mr Goh Choon Kang asked the Acting Minister for National Development why three blocks of Housing and Development Board executive flats being built at Serangoon Avenue 2 were included in the balloting exercise for the second quarter of 1994 though they were not advertised in the newspapers.

Mr Lim Hng Kiang: Mr Speaker, Sir, under the Booking System, it was HDB's practice to schedule building contracts for tender before they were advertised for offer in the quarterly booking exercises. As the tender for the three blocks of Executive flats at Serangoon Avenue 2 was scheduled for October 1994, it was therefore not advertised for offer in the Second Quarter booking exercise held in April 1994.

During the April 1994 exercise, however, there was an overwhelming demand for flats in Serangoon. HDB therefore had to advance the three blocks of Executive flats in Serangoon for balloting in the April 1994 exercise, even though tender has not been closed for these three blocks, in order to ensure that new households would be successful in booking a flat by their fifth attempt, and upgraders by their ninth attempt.

Mr Goh Choon Kang (Braddell Heights): Sir, does the Minister agree that many residents who wanted to upgrade in this estate were deprived of the opportunity because of this and, therefore, will he consider asking HDB to make a public apology?

Mr Lim Hng Kiang: Mr Speaker, Sir, on the contrary. Even if new applicants wanted to apply for these three blocks later on in October 1994, they would have been at the end of the queue and they would not have been balloted for these blocks of flats. The reason why we put the flats for booking after the tender is that we will know the prices of the tender. But in this case, HDB stuck its neck out and put up these three blocks for balloting so as to satisfy the demand even though they did not know the tender prices. So in a way, HDB was taking a risk that the tender prices might be much higher and that it would end up with a greater subsidy. It is to HDB's credit that they made this management decision to accelerate the balloting of these three blocks so as to satisfy the applicants for those flats in Serangoon. If we had delayed the balloting of these three blocks and put them in a later exercise when new applicants submit their applications, they would not have a chance for these blocks of flats in any case.

Mr Goh Choon Kang: Does the Minister agree that by doing so, residents who want to upgrade are deprived of the opportunity to do so because existing residents enjoy certain priority?

Mr Lim Hng Kiang: Let me explain again. In the Serangoon and Hougang areas, the number of applicants to the number of flats is now almost 10:1. And to enable the new households to be successful by the fifth attempt and the upgraders by the ninth attempt, we have to put a certain supply of flats for sale each time. If we had not put up these three blocks, then the new households would still not get their flats on the fifth attempt and the upgraders would not get theirs on the ninth attempt. They would apply subsequently in October and that would be their sixth attempt and tenth attempt respectively. They would be very high in the queue and they have got these three blocks. So instead of waiting for them to re-apply in October and give them these three blocks, HDB took the management decision to put these three blocks for sale and allocate them to the people on the queue earlier.