Debated in Parliament on 8 Jul 2013.
Ms Mary Liew asked the Minister for National Development (a) how does the Ministry measure the demand to determine the supply required for 2-room HDB BTO flats; and (b) in view of the national effort to improve wages for lower-income group, does the Ministry have any plans to review the monthly household income ceiling of $2,000 for such flats in non-mature estates to improve the eligibility and take-up rate of these flats among lower-income Singaporeans and how often are such reviews held.
HDB takes a long-term view in planning the supply of the various flat types. In 2006, we resumed building 2-room flats to help lower-income households own their home. 2-room flats also provide an affordable housing option for those seeking to right-size from a larger flat, because of changes in family or financial circumstances. From the BTO launch later this month, 2-room flats will also be made available to single Singaporeans.
In planning the supply of 2-room flats, HDB takes into account demand from the various buyer groups as well as longer-term socio-economic and demographic changes. While demand for new 2-room flats may be lower initially at BTO launches, take-up rates tend to improve subsequently when the flats are nearer completion. This is because they cater partly to buyers who are rightsizing and are, hence, looking for nearly completed or completed units which they can move into quickly. For example, the take-up rate for 2-room flats in Fernvale Crest increased from 48% at its June 2009 launch to 97% after its completion in 2013.
HDB reviews its policies regularly to ensure that they remain relevant. Last year, we raised the monthly household income ceiling for the purchase of 2-room flats in mature estates from $2,000 to $5,000. We are currently reviewing the income ceiling for the purchase of 2-room flats in non-mature estates and
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will finalise the review soon.
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