HOUSING AND DEVELOPMENT BOARD FLATS (Demand and supply)

Dr Teo Ho Pin asked the Minister for National Development (a) what is the status of planned and actual demand and supply of Housing and Development Board flats from 1998 to 2000; (b) how many HDB building project tenders were called in 1999 and the first quarter of 2000 and not awarded till to date; and (c) what is the waiting time for both new flat applicants and upgraders.

The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee) (for the Minister for National Development): Mr Speaker, Sir, the HDB received 8,800 and 9,700 Registration for Flats System applications in 1998 and 1999 respectively, and an average of about 1,200 applications per month during the first five months of this year. As a result, the queue length for HDB flats has declined to about 37,000 as at 31st May 2000, compared to a peak of about 146,000 in the year 1996/1997. The shorter queue has enabled HDB to reduce the waiting time to about 1 to 1.5 years for first-timer applicants, and to about 3 to 4 years for upgrader applicants.

In view of the lower demand for new HDB flats, HDB has reduced its building programme from about 28,000 units in 1998 to 22,000 units in 1999. It is planning for a further reduction of the building programme for this year. Nonetheless, the decline in HDB building works will not have a significant impact on the construction sector as work on other public buildings is projected to increase this year.

On the status of HDB tenders, HDB called tender for 32 building contracts in 1999 and 9 building contracts in the first quarter of 2000. Of these, 14 contracts are still under evaluation, and the majority of which will be awarded between June and October this year.

Dr Teo Ho Pin (Sembawang): Sir, may I ask the Senior Parliamentary Secretary how many construction firms working on existing contracts have been asked by HDB to slow down their programmes, and whether the HDB will compensate the contractors if these construction works are slowed down?

Assoc. Prof. Koo Tsai Kee: Sir, I am not aware that HDB has asked any existing contractors to slow down the existing building programme. What HDB has done is to evaluate the 14 contracts that will be awarded between now and October this year. In view of the reduced demand for HDB flats, HDB is now looking at the tenders that are going to the market, and those which we have called for tenders but not yet awarded.

As regards compensation, for those tenders which are under the design and build category, HDB can consider it if contractors come to us and say, "You have called for tenders. We have put in effort for the tender and now you have decided either to defer or cancel it altogether." But so far, no contractor has come to us and asked for compensation.

Dr Teo Ho Pin: Sir, may I ask the Senior Parliamentary Secretary whether the HDB is prepared to relax the so-called offer of rejected flats for walk-in selection? There are new applicants for certain flats. Sometimes there are rejections. These flats are normally pooled and put up in advertisements for the next allocation. Can we open it up earlier so that applicants can walk in to select flats?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, we can consider that proposal.