SELECTIVE EN-BLOC REDEVELOPMENT SCHEME IN HILLVIEW ESTATE

Mr Chiam See Tong asked the Minister for National Development whether he is willing to exclude the three Housing and Development Board point block flats, namely Blocks 12, 13 and 14 of Hillview Estate, from the Selective En-bloc Redevelopment Scheme.

Mr Mah Bow Tan: Mr Speaker, Sir, the Selective En-bloc Redevelopment Scheme (SERS) is a "win-win" situation for both the nation as a whole and the affected residents. With SERS, the Government can renew and rejuvenate older HDB estates. More flats of improved design can be built to make better use of our limited land. This will also encourage and allow younger families to move into these older estates.

The affected residents enjoy many benefits under SERS. They can move to newer and better HDB flats, with a fresh 99-year lease, at subsidised selling prices. They are also given market compensation for their existing flats as at the time of announcement of SERS. Those who are eligible to buy a flat directly from HDB can enjoy a further 20% discount, subject to a maximum of $30,000, off the selling prices of the replacement flats. In addition, SERS lessees need not move out of their existing flats until their replacement flats are ready. In most instances, the replacement flats are built in close proximity to their existing flats so they do not have to move out of the neighbourhood.

Since the announcement of SERS in 1995, 31 sites involving some 12,500 HDB sold flats have been identified for the Scheme. They are located in the older HDB estates such as Queenstown, Bukit Merah, Bedok, Jurong, Toa Payoh, Kallang/Whampoa and the Central Area. SERS has been well received by the affected lessees in these precincts. For all the SERS sites announced so far, the average support level from affected lessees is above 90%.

The SERS for Hillview Estate was announced on 21st March 1999. It involves the entire Hillview Estate, comprising 12 sold apartment blocks, one rental apartment block, the neighbourhood centre and the Bukit Gombak Community Centre.

HDB conducted a survey among the affected flat lessees after the announcement. As at 28th June 1999, 86% of them have responded to the survey. Of these, 86% are in support of SERS. Among the five-roomers at Blocks 12 to 14, 70% supported SERS. The scheme has clear support from the majority of residents.

Nevertheless, I understand that a small group of residents are unhappy with the scheme for various reasons. The Government will do whatever it can to ensure that they are treated fairly and will try to help them resolve their problems.

Meanwhile, the Government will proceed with the original plan to include the three 5-room blocks at Blocks 12 to 14 in the redevelopment.

Mr Ang Mong Seng (Bukit Gombak): (In Mandarin): Mr Speaker, Sir, first of all, I wish to thank the Minister for a positive answer. I believe that this answer will satisfy the wishes of the residents of Hillview Estate. I would like to raise a few questions with the Minister.

Firstly, for the replacement flats, can the Minister consider building bigger flats, such as the 4-room or 5-room flats, to satisfy the needs of the residents? Secondly, can the resale levies be packaged in some way to lighten the burden of the residents? Thirdly, can the single residents also enjoy the discount in the purchase of the replacement flats? Fourthly, can some coffeeshops and shophouses be built in the replacement flat precinct to provide better services to the residents?

Mr Mah Bow Tan: Sir, since the announcement of the SERS programme at Hillview Estate in March and also the announcement of the Tronoh Road redevelopment, both the MPs, Mr Ang Mong Seng as well as Dr Lee Boon Yang, have met with the residents and given very valuable feedback to HDB on the concerns and requests of the residents. In view of the MPs' feedback, my Ministry has decided to fine-tune the SERS programme for these two sites.

The changes are as follows. First of all, on the question of flat sizes. HDB will be providing some 4-room and 5-room new replacement flats which will have slightly bigger floor areas to match the current flat sizes in these two areas.

On the question of the premium and levy, to help the residents affected by the HDB's revised resale levy policy, my Ministry has decided to give them the option to pay the standard 20% premium on the selling price of the replacement flats in view of the revised resale levy. This would help some of the residents pay a lower amount. The resale premium will also be incorporated as part of the selling price of the replacement flat. In this way, it can be paid either through the Members' CPF accounts or they can get a mortgage loan from HDB to pay this amount. Those who opt to pay the resale levy can also contra the payment from the compensation that they will receive for the sale of their existing flats. So this is in lieu of paying cash.

To further help their cashflow, my Ministry will also allow affected residents who are liable for resale premium or deferred levy to pay only $30,000 of the premium or levy upfront. The rest of the amount will be deferred. This will be held as a contingent liability by the HDB which will only need to be paid if and when they sell or transfer the replacement flat allocated under SERS. As a goodwill gesture, HDB will not charge interest on the deferred amount. These concessions are also extended to affected lessees in other SERS sites announced earlier if they are in the same situation.

Finally, on the question of mortgage loan, HDB will also be considering on a case-by-case basis to provide up to 100% mortgage loan for the purchase of replacement flats. HDB will give fuller details of these changes later on.

As for SERS lessees who are singles, HDB has decided that it will not extend the full rehousing benefits to them because as it is, under SERS, singles are already enjoying some very major concessions. For example, they are now able to get a new replacement flat as a single lessee and this new replacement flat will of course be at subsidised prices. They are also allowed to buy a new 4-room flat and, as the Member may be aware, under normal circumstances, singles are not eligible to buy a new flat directly from HDB and even then, they can only buy up to a 3-room resale flat.

The Member has also asked about shops in the area. The assessment of HDB is that in the new redeveloped area, there are sufficient shops and eating houses in the vicinity of the replacement site. So HDB has not planned to build any commercial facilities there. But in view of the Member's appeal, I will ask HDB to look into the feasibility of providing a few shops in the area.

Mr Chiam See Tong (Potong Pasir): Sir, these three blocks of flats are point block flats. They have 25 levels each and are densely occupied. Also, Sir, there are precedents in other places, which have been compulsorily acquired, where the point block flats are left alone. For example, at Depot Road and Teochew Street, the point block flats which are densely occupied are not demolished.

Mr Speaker: Mr Chiam, can you proceed with your question?

Mr Chiam See Tong: My question is, in view of the fact that HDB is going to use the land at Hillview Estate intensively and that these point block flats are already an intensive use of the land, why can they not be left alone?

Mr Mah Bow Tan: Sir, the first point that Mr Chiam made was that these flats are already densely built and therefore they should be left alone. That is not the only consideration in so far as the redevelopment of the Hillview Estate is concerned. If Mr Chiam is familiar with Hillview Estate, he will realise that that estate is quite separate from the rest of the estate. So one of the considerations has been that if the three point block flats are left remaining behind as HDB flats, the maintenance and redevelopment of the area will not be as optimal as they should be.

There are also complaints about the flats in the area in so far as the condition of the flats is concerned. Many residents have given feedback to the Member of Parliament that there are problems with maintenance, public transport facilities in the area, and so on. So this is the other consideration that was taken into account in the overall redevelopment of the estate. It is of course not a hard and fast rule because it depends very much on different estates in different areas. Indeed, Mr Chiam mentioned two other places where point block flats were not involved in SERS. So it really depends on what the plans are for the overall redevelopment of the estate and whether the existence of these point block flats would hinder the redevelopment plans. It is for these reasons that consideration was given to the inclusion of the three point block flats as well.

Having said all that, of course, ultimately, when the residents were polled for their response to the SERS programme, the response in these point block flats also indicated that the clear majority of the residents do support the SERS programme. There are some residents I know in the point block flats who are against the redevelopment of their blocks. However, we have to bear in mind that the whole SERS programme is a public redevelopment programme that is intended to generate benefits to the majority of the residents as well as to the nation. Yes, there are some people who are against the SERS scheme. As I have indicated earlier, we will try our best to mitigate some of their concerns. But it is not possible for us to stop the SERS programme for these three blocks just because of a few residents who are against the scheme.

Mr Chiam See Tong: Sir, I do not know how the Minister arrived at this 70% approval. But from our own research, we found that almost everyone we approached was not happy about moving out from these point block flats. They stand to lose an average ---

Mr Speaker: Mr Chiam, can I ask you to proceed to your supplementary question. You appear to be making a speech.

Mr Chiam See Tong: I am coming to my question, Sir.

Mr Speaker: Can you please proceed right away to your question?

Mr Chiam See Tong: Sir, as far as we know, most of these residents at the point block flats are unhappy because their compensation is only $300,000 and many of them bought at the resale value of $360,000 for a start. They already lose $60,000.

Mr Speaker: Mr Chiam, if you have no question, I will ask you to resume your seat.

Mr Chiam See Tong: I have a question, Sir. I would like to ask when would these buildings be demolished. I just want another clarification. He said that the floor area would be bigger. Is this in respect of the new flats that they are moving to or the ones that are going to be rebuilt? If they are going to be for the rebuilt flats, it does not benefit the residents there now.

Mr Mah Bow Tan: Let me try and answer Mr Chiam's questions. The first one is on the support level. What HDB does is to send out a survey form to each of the residents and the residents are asked to indicate, among other things, whether they support the SERS scheme and also what kind of flat types they want in the replacement site. This is to facilitate the planning for flats in the replacement site. The returns are collected and collated by HDB and that is how we get the 70%. It is not a figment of my imagination. It is part of a survey done by HDB. It is in writing and all the residents actually signed the returns and indicated in writing whether they support or otherwise. So it is, I believe, a fairly reliable indicator of the support level.

The other point that he made is that residents who had bought at $360,000 will now get compensation of $300,000. I think that is only half the story. If he goes into it in greater detail, he will find that the majority of the residents will come out very much ahead. They will get a new flat. They will get a flat which has got a brand new lease. They will get a new subsidised flat in a better area. They will get a discount of 20% over and above all that, plus all the other benefits. It is a deal which is simply too good to refuse for many people. But there are a few, as I have indicated earlier, who may still not be happy with the total package. We will try and help them. But, by and large, the majority of the residents do benefit from the SERS scheme and that is indicated very clearly by the kind of written support level that we have been getting over the last 30-over sites.

As far as floor areas are concerned, it is for the new replacement flats because there were some concerns that the replacement flats in some cases may be too small for the residents in Hillview Estate. Mr Ang Mong Seng did make a representation and HDB has found it possible to build a few of these larger flats. Not everybody would be interested in these flats, but for a few of them who are interested, HDB has found a way to cater to their interest. So these are for replacement flats, not for the existing flats.

Mr Low Thia Khiang: Sir, would HDB consider building larger flats in new estates if there is such a demand?

Mr Mah Bow Tan: Very good question. I have asked HDB that myself. The design of the new estates will take into account the demands for the new flat types that are being requested by residents, not just the size of the flat but also the pricing of the flat. So in this regard, the sizes that are being built in the new estates are just right, not only in terms of household family size, but also in terms of pricing. We can build flats which are much larger than what they are today. But at the end of the day, there are so many types of flats and so many number of flats that we can build of that particular size. We can build all 5-room flats of 150 sq metres. But there will be fewer 5-room flats for us to build. Then what? After that, the MP will come back and make a representation on behalf of his residents who cannot get flats. Our policy is very simple. We will try and house as many Singaporeans as possible in flats which are comfortable, which meet their requirements and, at the same time, are affordable. These are the key criteria.

Mr Chiam See Tong: Three more supplementary questions, Sir. First, when will these residents have to move out? Second, for the point block flats, will HDB review their compensation rate? And third, I believe in the last general elections, the residents there were promised upgrading. Did HDB inform the PAP candidate there that there would be upgrading? 1.30 pm

Mr Speaker: Order. End of Question time.

[Pursuant to Standing Order No. 21(3), Written Answers to Question Nos. 14, 16-21, 23-25 and 28-31 on the Order Paper are reproduced in the section, "Oral Answers to Questions Not Reached" (Cols. 1789 - 1802).]