HDB FLATS IN MATURE ESTATES (Balloting)

Dr S. Vasoo asked the Minister for National Development if he will give an appraisal of the recent public response to the balloting of Housing and Development Board flats in mature estates and if there are more future plans for such an exercise.

The Minister for National Development (Mr Mah Bow Tan): Mr Speaker, Sir, HDB launched an exercise to sell unselected flats in mature estates and Executive flats in non-mature estates on 15th October 1999. 1,170 units of 4-room flats, 5-room and Executive flats in the mature estates, as well as 1,500 units of Executive flats in the non-mature estates were offered for sale.

The flats in the mature estates were previously set aside for special schemes, such as the Selective En-bloc Redevelopment Scheme (SERS) and Relocation Programmes. As these flats were no longer needed for the various schemes, they were offered to eligible public applicants. Executive flats in non-mature estates which were not taken up by applicants on the waiting list were also offered.

Response to the offer has been very good. At the close of application on 4th November 1999, HDB received more than 13,000 applications, about five times the number of flats offered. Applications for flats in the mature estates were about 10 times higher than the number of flats offered. As for the Executive flats in the non-mature estates, applications received were about 1.5 times the number of flats offered.

HDB conducted a computer ballot and informed all the applicants of their queue positions. To help first-timers set up their homes early, they were accorded priority in the balloting. About 70% of the applicants shortlisted were first-timers. The selection exercise for the first batch of shortlisted applicants commenced on 7th January this year and was completed on 3rd February. The take-up for the flats has been encouraging. About 60% of the 2,670 flats offered were selected. The remaining flats will be offered to the other applicants according to their balloted queue positions.

HDB will consider conducting similar balloting exercises from time to time. In the last few years, it has embarked on the SERS programme to redevelop the older public housing estates. Through this programme, HDB has been able to make better use of scarce land and build more flats in the mature estates. When HDB has accumulated a sufficient number of surplus flats from the programme, it will consider offering them to eligible public applicants. As for Executive Flats in the non-mature estates, HDB will monitor the take-up rate during the subsequent selection exercises and offer the remaining unselected Executive flats in phases to the public over the next few years.

Dr S. Vasoo (Tanjong Pagar): Sir, first, in view of the overwhelming response for younger people to move into older estates, would the Minister consider stepping up the SERS programme in the older estates? Second, what other proposals has his Ministry got to revitalise older estates, like mine and other Parliamentary colleagues.

Mr Mah Bow Tan: Sir, this is exactly what the Ministry is embarking upon, to try and revitalise and bring back some of the vibrancy in some of the older estates. This has got benefits not just to the new applicants who are interested to come to these estates, particularly those in the city areas, but also those who are currently living there, the shopkeepers as well as the residents. So we are now looking at the exercise on a systematic basis to try and identify more areas for the SERS programme. However, we have to bear in mind that there is a certain limit to the number that we can do every year, not least because the capacity of the ability to absorb such new flats will also be limited. We have to look for replacement sites for a start. We have got to make sure that replacement sites are sufficient to take care of the residents who will be relocated and, thereafter, we can start the programme. While we want to move as fast as we can, there is a certain limit to how fast we can move. But, nevertheless, I would like to assure the Member that this is one of the priority areas that the Ministry is looking at.

Dr Vasoo: The old estates cannot wait to have their vibrancy increased. I am thinking whether the very old estates in the city area can be revitalised quickly.

Mr Mah Bow Tan: Sir, as I said, one of the most effective ways of revitalising the estate is the SERS programme. But of course that is not the only way to achieve that objective. Currently, there are already SERS flats in the area which have been earmarked for relocation of lessees from other locations. As and when there are surplus flats available in these particular locations, we will look into opening up these flats for allocation to new applications. And generally, as the Member himself has said, these flats are very popular with new applicants, especially the younger applicants. So with this particular programme, we will be able to go quite a long way towards the revitalisation programme.

But having said that, I also would like to mention to the Member that there are also other schemes that are currently available to these people to encourage them to move into the mature estates, including those involving the Member. For example, the CPF grant scheme actually encourages and facilitates the movement of younger applicants into this particular estate. With the CPF grant, if you consider the fact that applicants who wish to move nearer to their parents can apply and receive a grant of $40,000, I think that is a considerable sum of money which will help facilitate the movement of these people to the older estates. So one of the ways that the Member can help is to publicise such schemes to his constituents or the children of his constituents and encourage them to come back to the older estates.

Dr Vasoo: Can I ask the Minister whether the $40,000 grant that has been given could be reviewed to make it more attractive?

Mr Mah Bow Tan: At the moment, the sense is that the grant is sufficiently attractive.