HOUSING AND DEVELOPMENT BOARD FLATS (Purchase and rental)

Dr Teo Ho Pin asked the Minister for National Development if the Housing and Development Board will (i) allow single persons to purchase new 4-room flats; (ii) allow HDB lessees (within the 5-year occupation period) to downgrade to 3- or 4-room flats; and (iii) increase the income ceiling for rental flats to $1,000.

Assoc. Prof. Koo Tsai Kee (for the Minister for National Development): Mr Speaker, Sir, as a general policy, our public housing programme requires flat applicants to form a family nucleus to qualify for the purchase of a new flat from HDB. This is in line with the philosophy that the family is the basic building block of a strong and stable society.

However, to meet the housing needs of some Singaporeans who remain single and would like to live on their own, the HDB has in place two schemes, namely, the Single Singapore Citizen Scheme and the Joint Singles Scheme. Under the Single Singapore Citizen Scheme, singles who are 35 years and above can buy resale 3-room or smaller flats located outside the urban areas. The 3-room flats provide more than sufficient space for singles who live on their own.

Under the Joint Singles Scheme, two eligible single citizens can jointly purchase resale flats of any size anywhere in Singapore. The CPF Housing Grant Scheme is also open to first-timer single applicants who are 35 years or more. Today, the grant is $11,000 under the Single Singapore Citizen Scheme and double that, $22,000, under the Joint Singles Scheme.

Sir, as there are sufficient avenues to meet the housing needs of singles, I think for now there is no need to allow singles to purchase new 4-room flats.

Dr Teo also asked about downgrading during the first 5-year occupation period. In general, HDB requires lessees to occupy their flats for at least five years before they can sell them in the open market. This is to deter speculation on HDB flats, which are heavily subsidized.

However, there are two options available to HDB lessees if they need, for whatever reasons, to downgrade to smaller flats within the 5-year occupation period. First, they can surrender their existing flat to HDB and then purchase a resale flat from the open market; or they can mutually exchange their existing flat with another lessee, provided both parties have completed a minimum 1-year occupation period and meet the requirements of the scheme.

Dr Teo also asked about raising the income ceiling for rental flats. Sir, HDB reviews the income ceiling regularly to take into account changes in household incomes. In the case of rental flats, raising the ceiling from the current $800 per month to $1,000 per month may be against the Government's objective to help as many Singaporeans as possible become home owners. Nevertheless, I would like to assure the House that HDB does exercise flexibility to allow families with incomes exceeding $800 per month to rent HDB flats at subsidized rental if there are mitigating circumstances. HDB also has several assistance schemes, such as Sale of Flats to Sitting Tenants, Sale of 3-Room Buy Back Flats and Rent and Purchase Scheme, to help the lower income groups to own HDB flats.