NEW HDB FLATS (Size)

Dr Lee Tsao Yuan asked the Minister for National Development why new 4- and 5-room Housing and Development Board flats are discernibly smaller than older models of 4- and 5-room flats respectively, especially since the general expectation will be of better and more spacious housing when average incomes increase.

Mr Lim Hng Kiang: Sir, the aspirations of young families to have better and more spacious housing would have to be balanced with the limited land resource of our small country.

Compared with the 1970s and the 1980s, we now have smaller family units. We would not be optimising land use if we had continued building new flats of the same size as the older models without taking into consideration the family size of today. However, this does not mean that those living in new flats today are worse off. The living space per person has increased through the years due to the reduced household size.

What we can do to meet the higher expectations of today's young families is to build flats with better quality, finishes and design. HDB has also been building more Design-and-Build, and Design-Plus flats. The designs of such flats are comparable with private condominiums. HDB will continue to review the design and finishes of new HDB flats to meet the preferences and needs of the majority of flat applicants.

Dr Lee Tsao Yuan: Sir, is it not possible to give potential applicants a choice; in other words, to have 4-room flats of various sizes, because a certain family size of, say, parents plus two children, may only need a 4-room flat, but they may prefer a bigger 4-room flat rather than the present size of smaller 4-room flats.

Mr Lim Hng Kiang: The 4-room flats come in a wide variety of sizes, from the smaller ones, 85 sq metres to 90 sq metres, to above 90 sq metres. If they want bigger 4-room flats, they can buy from the resale market, and with the aid of the CPF housing grant, they can go for the bigger 4-room flats of 100 sq metres and above. So there is enough variety in terms of sizes.

Dr Lee Tsao Yuan: But will the Minister not agree that this is precisely the point? In other words, there are some families that are dropping out of the new queue in order to buy resale flats of the same type, for example, 4-room flats, precisely because they are bigger.

Mr Lim Hng Kiang: It shows that the policy is working. We give them the choice. They exercise their choice. We are not unhappy about it. They are happy; we are happy.

Dr Lee Tsao Yuan: But I think here the preference could be that they actually want a new flat, but because of the size, they would have to go for a resale flat.

Mr Lim Hng Kiang: If they want a new flat, then they have to settle for the small flats.

Assoc. Prof. Chin Tet Yung (Sembawang): Sir, may I ask what is the Ministry's policy towards current HDB owners of budget flats, like 4- and 5-room flats, who wish to downgrade to smaller flats, like 3-room flats, due to the fact that they cannot afford payments for the larger flats because of the economic downturn?

Mr Lim Hng Kiang: If they want to downgrade, they can sell off their 4-room or 5-room flats and buy 3-room flats in the resale market, as long as they have satisfied the 5-year occupation rule.

Assoc. Prof. Chin Tet Yung: Is there any chance for a review of the policy on the 5-year rule? Because some of the newer flat owners who have just taken possession of their 4-room flats find that it is rather difficult to keep up with their payments due to the economic downturn.

Mr Lim Hng Kiang: We will look at each case on its own merits. If indeed, they are under financial stress and they cannot continue with their payments, we will, of course, facilitate their downgrading to a 3-room flat, notwithstanding their not meeting the 5-year occupation rule.

Mr Shriniwas Rai (Nominated Member): Mr Speaker, Sir, while agreeing with the Minister that the families are getting smaller, there may be some families, because of affluence, that want to have bigger flats. Would the Minister consider the plight of those families?

Mr Lim Hng Kiang: If they are richer, I see no plight.