SINGAPORE : The public housing sector is up for a makeover,
starting with a pilot plan to allow private developers to design,
build and sell HDB flats.
National Development Minister Mah Bow Tan also announced other
changes in Parliament, like relaxation of rental rules to encourage
residents to be more self-reliant.
MPs wanted the government to keep public housing affordable and to
relax rules to help lower income families.
A 2.4-hectare plot along Tampines Avenue 6 is where the first
Design, Build and Sell blocks will be built by the private sector
for the HDB.
Gan Kim Yong, MP for Holland-Bukit Panjang, said, "HDB should focus
on building smaller flats such as 2-room or 3-room flats, leaving
the larger ones to the private sector, which is more than capable
of building them. Smaller units will also be more affordable and
take up less of the savings."
Developers get to decide on flat mix and layout, but preserve the
character of public housing by not having fences or facilities like
a swimming pool.
The flats will be treated like other HDB-developed flats. The
National Development Minister called this a liberalisation of the
market and a milestone.
Mr Mah said, "They will be sold to Singaporeans who are eligible to
purchase subsidised public housing. The Ethnic Integration Policy
will also continue to apply. The liberalisation of the public
housing market is a key milestone in the development of our public
housing programme. I believe it will re-shape the way HDB provides
public housing in future. It will introduce different ideas; it
will bring different designs, different minds to bear on how we can
provide good public housing.
"But I want to assure Singaporeans, that even as we involve the
participation of the private sector in our public housing
programme, we will continue to provide housing subsidies for young
couples to set up home, to start a family and for those who need to
upgrade from their smaller flat. I hope that private sector
participation in the development of public housing will help to
enhance and enrich the HDB experience."
Flat buyers can expect modern designs and features, which property
watchers say could come at a premium.
Said Eric Cheng, division director at PropNex Realty, "I feel that
the prices will be at least 30 to 45 percent higher than the
current prices. The developer will be putting in more effort on the
concept of living. The developer will probably have the rights for
deferment payment, progressive payment and even collection of keys.
The developer therefore will probably renovate the place, where
there will be marble flooring with all the features and buyers
themselves would have saved $30,000 to $40,000."
Mr Mah made clear in Parliament that prices will be
affordable.
Said Mr Mah, "HDB-developed flats, along with HDB resale prices,
will set the benchmark for the prices of DBSS flats. This will
ensure that public housing remains affordable for Singaporeans. MND
will evaluate the pilot DBSS project carefully before deciding
whether to implement more widely. If we do, it will be done
selectively, probably in the more mature estates."
To keep them affordable, eligible first timers will receive a
30,000 or 40,000-dollar grant from the government.
Keeping flats affordable was topmost of MPs concerns, as well as
helping financially strapped flatowners.
Many urged a relaxation of eligibility for rental flats.
MP for Ayer Rajah, Tan Cheng Bock, said, "Ask HDB to apply this
rule but with a widened scope -- to buy back the flats at market
rates, especially the three-roomers for those in severe hardship,
and then rent them back the flat at subsidised rates."
Yatiman Yusoff, Senior Parliamentary Secretary for Information,
Communications and the Arts, said, "Over the last three years, I
have seen an increasing number of cases where HDB flat owners who
want to downgrade to smaller flats or sell their flats and move to
rental flats, facing great difficulties in financing their
needs."
But the answer was no, though Mr Mah said flexibility will be
exercised for those in genuine hardship.
He also announced new flexibility in sub-letting, such as reducing
the occupation period from 10 years to five, to allow elderly
Singaporeans and others to rent out their flats and earn some
income.
Other changes include reducing the time bar for those who wish to
apply for a second subsidised flat from 10 years to five.
Another announcement was the introduction of the Town Council Lift
Upgrading Programme, or TC LUP, where the Town Councils will be
allowed to use part of their sinking funds for lift upgrading
works.
It is estimated that some 300 to 400 blocks around Singapore will
benefit from this programme.
It is part of a plan to speed up the lift upgrading programme
island-wide, which will also see it extended to low-rise four- and
five-floor blocks.
But the cost must not be more than S$30,000 per unit.
The programme will also be speeded up, with more precincts eligible
this year.
The measures are part of plans to complete lift upgrading for all
eligible blocks in 10 years instead of 15, and will cost the
government some S$5 billion. - CNA