Amount Spent by HDB in Upgrading Programme for Homeowners in 2017 Compared to 2007

Mr Saktiandi Supaat asked the Minister for National Development (a) how much has HDB spent in its upgrading programme for home owners in 2017 as compared to 2007; (b) how many home owners benefited from the upgrading works; and (c) how have these works translated to enhancing the value of the flats.

The estimated expenditure spent in financial year (FY) 2017 on all Housing and Development Board (HDB) upgrading programmes was about $590 million. In FY2007, the total amount spent was about $580 million.

If we look at just the Main Upgrading Programme and the Home Improvement Programme (HIP) alone, about 253,000 flats have benefited from the upgrading works so far, out of a total of 450,000 eligible flats built up to 1986. Another 230,000 flats will benefit from the extension of HIP to cover the flats built between 1987 and 1997.

Upgrading works enhance the value of the flat in several ways, depending on the type of upgrading work. Under programmes, such as the Lift Upgrading Programme and the Remaking our Heartland Programme, the Government builds new amenities which improve the living environment and result in more convenience to residents and added vibrancy to the area.

As for programmes, such as HIP, the Government heavily subsidises the works to help resolve common maintenance problems of ageing flats. By keeping the flats in good condition, HIP helps flats maintain their value even as they age. Without HIP, potential buyers of older flats and flat owners would have to undertake the works themselves, which can cost up to about $25,000 per flat.