Debated in Parliament on 13 May 2013.
Dr Lam Pin Min asked the Minister for National Development (a) how is the pricing for HDB Build-to-Order (BTO) studio apartments determined; and (b) whether the prices are affordable for senior citizens, considering the much shorter lease for studio apartments compared to the other BTO flat types.
Studio Apartments (SAs) are purpose-built housing for elderly Singaporeans. They are conveniently located near community facilities and come in ready-to-move-in condition with elderly-friendly features, such as grab rails, alert alarm systems, built-in wardrobes, and kitchen cabinets complete with gas stoves and cooker hoods. These features are not provided in a standard BTO flat. HDB offers SAs on 30-year leases in various estates, in two sizes of 35 square metres and 45 square metres, to cater to different budgets and needs of the elderly.
Like other BTO flat types, SAs are priced taking into account such unit attributes of location, internal features, lease period, size, terms and conditions of sale, as well as the market conditions.
The SA Scheme helps elderly homeowners to realise the value of their existing homes for their retirement needs. For example, those right-sizing from a fully paid-up 3-room HDB flat to a SA are generally able to receive net proceeds of about $200,000. Second timers also do not need to pay a resale levy when they buy a SA. This further reduces their financial outlay. Elderly HDB homeowners who right-size their flats may also apply for the Silver Housing Bonus and receive a cash bonus of up to $20,000 from the Government.
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