LEASES AND PRIVATISATION OF HOUSING AND DEVELOPMENT BOARD FLATS

Mr Shriniwas Rai asked the Minister for National Development if he will (a) consider granting leases of 65 years for Housing and Development Board (HDB) flats; and (b) take steps to privatise 5-room and executive HDB flats as in the case of flats of the Housing and Urban Development Company.

Mr Lim Hng Kiang: Under the Home Ownership Scheme, HDB flats are sold for long term owner-occupation by the eligible purchasers and their families. For this reason, new HDB flats are sold with a 99-year lease so that not only the purchasers but the second and subsequent generations of the same household can continue to live in them.

The Government will ensure that public housing remains affordable to the majority of Singaporean families. There is therefore no need to sell HDB flats with a shorter lease to keep public housing within reach of Singaporeans.

The privatisation of HUDC housing estates is meant to meet the aspirations of purchasers for self-management of their estates. After privatisation, the maintenance of the housing estates would be funded entirely by the purchasers' payments of maintenance charges and contributions to the sinking fund. As HUDC flats are generally developed in well-defined boundaries, it is also relatively easier to privatise them.

On the other hand, HDB flats are in public housing estates with shared community facilities and amenities so that the running costs on conservancy and maintenance of the common areas are kept within reasonable limits. As HDB estates are made up of a combination of different flat-types, with less well-defined boundaries, there is no immediate plan to privatise any HDB estate.