SINGAPORE – There will be “many more” speeches on housing in Parliament over the next five years but Minister for National Development Khaw Boon Wan chose his first yesterday to lay out the priorities over the first two years.
He reiterated a commitment to help first-time flat buyers earning less
than S$10,000 a month get their first Housing and Development Board
(HDB) home “as soon as possible”, as well as address the housing needs
of families with a household income of less than S$1,500 per month.
“These are the two groups I can help most during my first two years,” Mr Khaw said. “But I am aware there are other groups of home buyers: The singles, the second-timers, the upgraders, the downgraders. I will attend to them more fully in due course.”
The Government has committed to build 50,000 Build-To-Order (BTO) units. If demand remains strong beyond next year, Mr Khaw said the Government has “the resources and the capacity to build more than 100,000 HDB flats during this term”. This may include BTO projects in the proposed Bidadari estate, which can potentially house up to 12,000 units.
Earlier yesterday, the HDB said plans to build ahead of order are continuing with seven BTO projects, despite the subdued response from home buyers. Among the seven BTO projects launched last month, three had relatively low application rates.
While the Government will not launch any BTO projects in Tengah during this term, Mr Khaw said it would put in infrastructure like roads.
In tandem, Mr Khaw said he was “tackling the issue of affordability head on” and has “stabilised the prices” of about 13,000 BTO flats. He noted the May, July and September BTO prices were “roughly comparable” to similar units launched in April.
“The upcoming BTO launch next month will repeat this pattern. Newlyweds eyeing new HDB flats do not need to worry that BTO price will run ahead of their income,” Mr Khaw said.
As for households earning less than S$1,500 per month and for whom home ownership is now out of reach, Mr Khaw said the Government would be building more rental flats and “using interim facilities” such as dormitories at the former Malayan Railway site in Tanjong Pagar. Since May, the Government has housed 1,400 more families and cut waiting time for a rental unit to six months.
Mr Khaw also revealed he would be reviewing the rental structure. Emeritus Senior Minister Goh Chok Tong had told him about tenants who worked to raise their income, only to see it going to the HDB through higher rental. “He has a point … we can consider introducing more rental tiers, with smaller increments in rental adjustments so the incentive to work harder and earn more is not unwittingly diminished,” Mr Khaw said.
He hopes to raise the chances of second-timers getting a BTO flat, which will reduce demand in the HDB resale market and moderate resale prices. Only 5 per cent of BTO flats are now kept for second-timers but they make up 40 per cent of applicants.
As for private housing, which makes up 23 per cent of the market, the Urban Redevelopment Authority will continue to release land parcels to meet demand. But Mr Khaw ruled out removing the cooling measures for now. “We will continue to monitor market conditions closely and, if need be, we will take further measures,” he said.
“These are the two groups I can help most during my first two years,” Mr Khaw said. “But I am aware there are other groups of home buyers: The singles, the second-timers, the upgraders, the downgraders. I will attend to them more fully in due course.”
The Government has committed to build 50,000 Build-To-Order (BTO) units. If demand remains strong beyond next year, Mr Khaw said the Government has “the resources and the capacity to build more than 100,000 HDB flats during this term”. This may include BTO projects in the proposed Bidadari estate, which can potentially house up to 12,000 units.
Earlier yesterday, the HDB said plans to build ahead of order are continuing with seven BTO projects, despite the subdued response from home buyers. Among the seven BTO projects launched last month, three had relatively low application rates.
While the Government will not launch any BTO projects in Tengah during this term, Mr Khaw said it would put in infrastructure like roads.
In tandem, Mr Khaw said he was “tackling the issue of affordability head on” and has “stabilised the prices” of about 13,000 BTO flats. He noted the May, July and September BTO prices were “roughly comparable” to similar units launched in April.
“The upcoming BTO launch next month will repeat this pattern. Newlyweds eyeing new HDB flats do not need to worry that BTO price will run ahead of their income,” Mr Khaw said.
As for households earning less than S$1,500 per month and for whom home ownership is now out of reach, Mr Khaw said the Government would be building more rental flats and “using interim facilities” such as dormitories at the former Malayan Railway site in Tanjong Pagar. Since May, the Government has housed 1,400 more families and cut waiting time for a rental unit to six months.
Mr Khaw also revealed he would be reviewing the rental structure. Emeritus Senior Minister Goh Chok Tong had told him about tenants who worked to raise their income, only to see it going to the HDB through higher rental. “He has a point … we can consider introducing more rental tiers, with smaller increments in rental adjustments so the incentive to work harder and earn more is not unwittingly diminished,” Mr Khaw said.
He hopes to raise the chances of second-timers getting a BTO flat, which will reduce demand in the HDB resale market and moderate resale prices. Only 5 per cent of BTO flats are now kept for second-timers but they make up 40 per cent of applicants.
As for private housing, which makes up 23 per cent of the market, the Urban Redevelopment Authority will continue to release land parcels to meet demand. But Mr Khaw ruled out removing the cooling measures for now. “We will continue to monitor market conditions closely and, if need be, we will take further measures,” he said.
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