HOUSING AND DEVELOPMENT BOARD EXECUTIVE FLAT APPLICANTS (Waiting list and incentives to shift over to purchase private condominiums)

Mr Tay Beng Chuan asked the Minister for National Development (a) how many applicants are on the waiting list to buy a Housing and Development Board (HDB) executive flat and how much time and Government subsidies will be required by the HDB to meet this housing demand; (b) how many of such applicants have shifted to the purchase of Executive Condominiums instead and how quickly can the Government meet the demand of all applicants; and (c) whether the Government will consider providing incentives for applicants to shift over to the purchase of private condominiums since many private condominiums are now offered for sale at prices comparable to Executive Condominiums, thereby reducing HDB's burden of meeting the public housing demand.

The Minister for National Development (Mr Lim Hng Kiang): As at 31st May 1998, there were 12,600 applicants on the Registration For Flat (RFS) queue for Executive flats. HDB stopped receiving applications for Executive flats with effect from 21st August 1995 when the Executive Condominium (EC) Scheme was introduced. Based on the current Building Programme, HDB will take about two years to clear the applicants on the Executive flat queue. For the new Executive flats offered for sale in the second quarter of 1998, the average market subsidy (ie, the difference between the assessed market value and the HDB selling prices) is about $65,000 per unit.

Based on their registration numbers, applicants on the Executive Flat queue were referred to buy EC in the various EC projects when they were launched. Other applicants on the HDB queue can also buy EC flats under the open category if they satisfy the eligibility conditions. All applicants on the Executive Flat queue have been given the opportunity to switch to ECs. Based on HDB records, about 2,200 applicants on the Executive Flat queue have booked ECs.

Mr Tay has suggested that the Government consider giving incentives to encourage applicants to buy private condominiums. Mr Speaker, Sir, private condominiums, Executive Condominiums and HDB Executive flats are different products catering to different groups of home purchasers. It is really up to the purchaser to weigh the terms and conditions and the selling prices of the three housing options to make their choices. There is no need for the Government to intervene or provide additional incentives to encourage applicants to buy private apartments or condominiums. There is also no need to reduce HDB's burden in meeting the public housing demand. ECs are built by private developers and HDB is very happy to build flats for those on its queue.