EXECUTIVE CONDOMINIUMS (HDB-type financing for first-time house owners)

[Mr Speaker in the Chair]

Mr Chng Hee Kok asked the Minister for National Development if the Housing and Development Board (HDB) will consider HDB-type financing for executive condominiums for first-time house owners.

The Minister for National Development (Mr Lim Hng Kiang): Mr Speaker, Sir, Executive Condominiums are introduced to provide Singaporeans private housing at a lower cost. It is therefore appropriate that this form of housing be developed by the private sector. Like other private housing, the sale of Executive Condominiums will be governed by the Housing Developers (Control and Licensing) Act. They are different from HDB Executive Apartments which are governed by the Housing and Development Act. To maintain similar treatment with other private properties, HDB will not be financing the mortgages for Executive Condominiums.

The Government will, however, be providing a $40,000 CPF Housing Grant for first-timers to assist them in buying their homes.

Mr Chng Hee Kok (Tampines GRC): Sir, will the Minister agree that the HDB Executive Condominiums have some special covenants on the first 10 years of its lease? They are therefore not quite like private properties. The second question I would like to ask the Minister is when will the financing schemes be finalised and announced to the public so that those who are on the waiting list of the Executive Apartments can make a decision as to whether they should opt for the Executive Condominiums.

Mr Lim Hng Kiang: Mr Speaker, Sir, first, I would like to clarify that these are not HDB Executive Condominiums. These are Executive Condominiums to be built by the private sector.

Second, the mortgages will be provided by the banks. There will be some covenants which allow the Government to take back the Executive Condominiums if the purchaser violates the condition of staying in it during the first five years or if he violates the condition that the flat can only be sold to Singaporeans and permanent residents in the next five years. Other than that, these flats will be, for all intents and purposes, private properties with strata titles. We will be taking action to amend the Housing Developers (Control and Licensing) Act to take over these Executive Condominiums and the financing arrangements by the banks should be sorted out before the first launch of the Executive Condominiums in June next year.