HOUSING AND DEVELOPMENT BOARD FLATS (Review of allocation system for first time applicants)

[Mr Speaker in the Chair]

Dr S. Vasoo asked the Minister for National Development whether there are further plans to review the allocations of purchased Housing and Development Board flats for first time applicants.

The Senior Parliamentary Secretary to the Minister for National Development (Mr Matthias Yao Chih) (for the Minister for National Development): Mr Speaker, Sir, the allocation system was only recently reviewed in 1994. Arising from the review, HDB adopted a queue system in place of the balloting system in non-mature estates. One of the main objectives of the change was to improve the chances of first-timers as they are now allocated a fixed percentage of the flats: 60% of the flats are set aside for them. Furthermore, if they apply for flats in the North Zone where the waiting time is the shortest, they can expect to get a 4-room flat as quickly as within one year.

The waiting time for those in the queue for 3-room buy-back flats is currently less than two years. And these applicants can take possession of their flats when their turn is due without having to wait out a long construction period.

HDB has no plans to change the allocation system for the time being.

Dr S. Vasoo (Tanjong Pagar GRC): Sir, would the Senior Parliamentary Secretary clarify whether the prices of flats would remain affordable with the longer waiting time? Would there be a steeper price increase in the near future?

Secondly, would he also review the transitional rental housing scheme to provide, in the interim, a better opportunity for flats to be allocated to those who are on the waiting list?

Mr Matthias Yao Chih: Sir, my Ministry will try to keep the flats affordable. No doubt prices may increase following construction cost increases, but we will keep monitoring the situation and try to keep the prices as affordable as possible.

On transitional rental housing, this is something we can review. I shall take this up with the Member further and find out what he has in mind.

Dr S. Vasoo: Sir, could the Senior Parliamentary Secretary provide advice, particularly to young first-timers applying for flats? Because there is a feeling that waiting time is longer than anticipated. What advice would he propose for those who are first-timers?

Mr Matthias Yao Chih: Sir, the flats in the North Zone have the shortest queue. For a 4-room flat, the waiting time is one year. These numbers are all made known to applicants. If everyone wants to go to the same zone, it is not possible for the HDB to build flats for them all at the same time. I would say that the applicants should keep themselves aware of the queuing times for various zones and try to make their plans according to their needs.