Housing & estates — Topics

20 Oct 2022

Housing and Development (Amendment) Bill

The Housing and Development (Amendment) Bill was introduced to amend the Housing and Development Act 1959, presented by Minister for National Development Mr Desmond Lee.
The bill was read for the first time and scheduled for a second reading at a parliamentary sitting on 28 November 2022, with instructions for it to be printed.
The debate focused on legislative changes to the Housing and Development Act, though specific substantive points from speeches were not detailed in the provided text.

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20 Oct 2022

Home Owners with Private Bank Loans Affected by Rise in Interest Rates and Risk of Foreclosures

Mr Alex Yam questioned the Prime Minister on the proportion of homeowners affected by rising interest rates and the risk of foreclosures.
Minister Alvin Tan stated that one-third of mortgage holders already face higher repayments, but household debt remains healthy with low non-performing loans and few foreclosures.
Stress tests by MAS indicate most households can manage higher rates and income loss, though highly leveraged households may struggle.
MAS and MND are collaborating to monitor the situation and provide debt restructuring options for those in difficulty.
Further enhancements to workflow processes between government agencies and financial institutions are being considered to address worsening mortgage rate scenarios.

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20 Oct 2022

Impact of Rising Interest Rates on HDB Flat Owners on Private Bank Home Loans

About 80% of HDB flat owners with private bank loans are on mortgage packages that track market interest rates with some lag, while 20% have packages that move in tandem, causing their repayments to rise recently; HDB concessionary loan rates remain unchanged at 2.6%.
The Government has introduced prudential measures, such as raising the interest rate floor for computing Total Debt Servicing Ratio and Mortgage Servicing Ratio, to ensure borrowers can manage potential further rate hikes.
HDB offers financial assistance to borrowers with HDB loans, including deferring or reducing installments and extending loan tenure, while private bank borrowers are encouraged to contact lenders early for restructuring, with inter-agency support available.
The non-performing mortgage rate among HDB flat owners has stayed low and stable, and the Government remains committed to maintaining public housing affordability and accessibility.

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20 Oct 2022

Shortening Waiting Time for HDB BTO Flats in Support of Marriage and Parenthood Objectives

The government is increasing the supply of Build-to-Order (BTO) flats, with a commitment to launch up to 100,000 new flats from 2021 to 2025 if needed, and is working to offer more projects with shorter waiting times of three years or less, subject to site readiness.
The Parenthood Provisional Housing Scheme (PPHS) income ceiling of $7,000 will be retained to prioritize applicants less able to afford market rental, though HDB will consider case-by-case requests for those with higher incomes facing exceptional circumstances, while PPHS supply is being doubled.
To mitigate construction delays and supply chain risks, HDB is working closely with contractors, stockpiling materials, standardizing designs, and exploring new construction methods to enhance productivity and resilience.

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20 Oct 2022

Impact of 15-month Wait-out Period on Private Property Downgraders

The Minister explained that the 15-month wait-out period for private property owners buying non-subsidised HDB resale flats aims to moderate demand and prioritise affordable public housing for first-time buyers, with exemptions for seniors aged 55 and above moving to smaller flats and case-by-case assistance for those with extenuating circumstances.
Over the past three years, about one in ten resale flat buyers were current or former private property owners, a group that tends to pay higher cash-over-valuation amounts; this measure is a temporary response to the buoyant resale market since 2020.
The government has increased the supply of both public and private housing, with a 75% rise in confirmed list units for the Government Land Sales programme in 2022, and will continue to monitor market conditions to ensure housing remains affordable and accessible.
In response to supplementary questions, the Minister noted that the exemption for seniors is limited to 4-room or smaller flats to aid retirement adequacy, and while the wait-out period may affect rental demand, it is intended to moderate overall resale market pressure.
The government also highlighted precautionary measures against higher interest rates, such as adjusting loan-to-value limits, and reiterated that Singaporeans facing financial difficulties can approach HDB for case-by-case assistance.

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5 Oct 2022

Participation Rate in Enhanced Revitalisation of Shops Scheme in HDB Estates

Murali Pillai asked about the number of HDB shops that have opted for the enhanced Revitalisation of Shops (ROS) scheme in the past three years and steps to boost participation.
Desmond Lee noted that the last ROS batch in 2016 saw five out of 13 sites proceed with upgrading, affecting about 270 shops, with works completed between 2019 and 2021.
HDB is currently reviewing the ROS scheme after holding focus group discussions with stakeholders from 2021 to 2022 to gather feedback for improvements.
One key feedback was that the current 100% support requirement from shop owners can block upgrades even with majority support, prompting consideration of changes to enhance participation.
HDB is finalizing the ROS enhancements and will share more details in the coming months.

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5 Oct 2022

Plans to Build More Complexes with Integrated Inter-generational Care Facilities

HDB collaborates with various ministries and agencies to integrate childcare and eldercare facilities in new public housing developments to support inter-generational bonding and convenience for sandwiched generations.
Efforts are made to co-locate childcare and eldercare facilities in multi-storey carparks or community buildings in BTO developments, with examples like Kampung Admiralty showcasing integrated complexes.
HDB and URA continue exploring co-location of social communal facilities within single complexes, considering local needs, site availability, and funding timelines.
Under the "Designing For Life" roadmap, HDB plans to position more childcare and eldercare facilities near precinct amenities like three-generation playgrounds to enhance family interaction.

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5 Oct 2022

Low Take-up Rate for Climate-Friendly Households Programme

Leon Perera questioned whether the $150 e-voucher for energy-efficient refrigerators could be increased due to higher costs and suggested expanding the programme to cover items like bicycles.
The Ministry responded that the voucher amount was based on market surveys to cover the average incremental cost of efficient appliances and that outreach efforts are underway to improve take-up rates.
The programme, targeting low-income HDB households, will be reviewed after its December 2023 end date, with consideration given to extending it to more appliances, including non-electrical ones like bicycles.

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5 Oct 2022

Universal Concept for HDB Flats Built before 2006

Jessica Tan asked if the Universal Design concept, applied to HDB flats built from 2006, could be incorporated into older flats built before 2006 to better support seniors and residents with mobility challenges, and whether there are plans to do so.
The Minister of State responded that universal design principles are already incorporated into older blocks during upgrading, with programmes like the Lift Upgrading Programme and Neighbourhood Renewal Programme providing features such as ramps and resting points, while residents can also install grab bars and ramps under the Home Improvement Programme and Enhancement for Active Seniors (EASE) scheme.
Jessica Tan raised supplementary questions about addressing unevenness from scupper drains in older void decks and enhancing the EASE programme to include wider doorways and other features to accommodate wheelchairs more effectively.
The Minister of State acknowledged the feedback on scupper drains and noted that the EASE programme is being reviewed to explore additional items that enhance safety and mobility for seniors, considering the ageing population and future needs.

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4 Oct 2022

Requests for Housing Assistance Received by HDB and Outcome

From January 2020 to June 2022, HDB received about 22,600 requests for priority allocation of a new flat and 6,800 requests for public rental assistance.
HDB assesses each appeal on a case-by-case basis, considering factors like extenuating circumstances and availability of other housing options.
The Minister noted that HDB conducts public sales exercises and maintains a queue system to ensure fair allocation of subsidized flats.
Tables 1 and 2 provide annual breakdowns of appeals received and approved, though specific success rates are not detailed in the provided speeches.

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4 Oct 2022

Previously Owned Residential Properties Transacted by Agents With General and Exclusivity Agreement Clause Since 2019

Dr Tan Wu Meng asked the Minister for National Development about the annual number of sales of previously owned residential properties transacted by agents under general and exclusivity agreement clauses since 2019.
The Minister explained that Estate Agency Agreements are binding contracts between consumers and agents, with templates provided by the Council for Estate Agencies (CEA) to protect both parties' interests.
CEA does not track the use of these template agreements as their adoption is not mandatory in the industry.

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4 Oct 2022

Annual Sales of Previously Owned Residential Properties Since 2019

Dr Tan Wu Meng asked the Minister for National Development about the annual sales of previously owned residential properties since 2019, including the breakdown of HDB residences, first-time sellers, and first-time sellers of HDB residences.
Desmond Lee provided information on resale transactions and first-time sellers for HDB flats and private residential properties from 2019 to August 2022, which is detailed in a table.

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4 Oct 2022

Consent for Couples with Minor Children Undergoing Divorce to List Them in Respective Applications for HDB Flat

Mr Louis Ng Kok Kwang asked whether the Ministry would require divorcing couples with minor children to state in their matrimonial property plan if both parties consent to listing the children in their respective HDB flat applications, and if not, the reasons for withholding consent.
The Ministry of Social and Family Development responded that the matrimonial property plan is meant for dividing matrimonial assets, not for planning future HDB applications, and it is unlikely parties can plan for HDB applications at that stage.
Couples with minor children undergoing divorce are encouraged to agree on their children's care arrangements, and since each person can only be listed on one HDB flat application, divorced parents with shared care must agree before listing their child in a flat application.
HDB may exercise flexibility on a case-by-case basis by waiving the requirement for an ex-spouse's consent if parents cannot agree, to ensure the child has a stable housing arrangement.
Parents who need further support can approach HDB directly or seek help from the Strengthening Families Programme @ Family Service Centres or Divorce Support Specialist Agencies.

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4 Oct 2022

HDB Homes with Mortgages Financed by Commercial Banks

Sitoh Yih Pin asked the Prime Minister for the percentage of HDB homes with mortgages financed by commercial banks.
Tharman Shanmugaratnam, responding for the Prime Minister, stated that as of the second half of 2022, 42% of HDB households had outstanding mortgage loans.
Of these households with mortgages, 63% were financed by HDB and the remaining 37% by financial institutions such as commercial banks.

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4 Oct 2022

Making Public Renovation Permits Issued by HDB for Authorised Renovation Works

Murali Pillai asked the Minister for National Development whether HDB could publicly share renovation permits it issues for authorised works via its portal or another platform to help residents plan around disturbances.
Desmond Lee explained that HDB requires permits for structural works like wall demolition and hacking, with contractors mandated to notify nearby households five days in advance and display notices during renovations.
He noted that since July 2021, residents can use the OneService app’s Home Renovation Notice feature to see HDB-permitted renovation dates and receive alerts for their block.
Non-structural renovation works like electrical or carpentry do not require HDB permits, but HDB encourages contractors to minimise noise and inform neighbours in advance.
The existing systems aim to provide transparency and allow residents to prepare for disruptions, though some works remain unregulated by HDB.

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4 Oct 2022

Helping Singaporeans Navigate a High-interest Rate Environment

Mr Saktiandi Supaat highlighted that rising global interest rates will impact Singaporeans’ household and business finances, and proposed targeted interventions such as better financial education for borrowers, flexibility in housing loan policies, support for SMEs, and adjustments to the Total Debt Servicing Ratio framework.
Senior Minister of State Chee Hong Tat affirmed the government’s commitment to keeping essential services like housing, healthcare, and education affordable, noted that household and business finances remain generally healthy, and highlighted existing support schemes for education, housing, and businesses.
The government will monitor the situation closely, work with financial institutions to help borrowers, and rely on prudent policies and community efforts to support Singaporeans through the high-interest rate environment.

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4 Oct 2022

Net Loss for Central Weave BTO Development at Ang Mo Kio

Leong Mun Wai asked for the net loss, land cost, and overall government profit and loss position for the Central Weave BTO project at Ang Mo Kio.
The Minister confirmed HDB’s estimated development loss is about $250 million, rising to $270 million with CPF housing grants included.
The land cost for the project is about $500 million, determined by market valuation and paid back into the Past Reserves.
HDB prices flats based on market value with subsidies for affordability, and recorded an average annual deficit of $2.68 billion from 2019 to 2021.
The government emphasized that HDB does not profit from flat sales and aims to keep public housing affordable for all Singaporeans.

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4 Oct 2022

Affordability of Rising Public Housing Prices and Impact of Prices on Marriage and Fertility Rates

The Minister explained that rising HDB resale prices are driven by strong demand from household formation, smaller households, and delayed BTO construction, but emphasized that new flats remain affordable with subsidies and grants, and announced cooling measures like a 15-month wait-out period for private property owners and tighter loan limits to moderate demand and ensure prudent borrowing.
In response to concerns about housing prices affecting marriage and fertility, the Minister noted that while no specific studies have been conducted, policies prioritize first-time families with increased BTO supply, grants, and ballot advantages to support home ownership and family formation.
The government is ramping up public housing supply to 100,000 flats from 2021 to 2025 to meet demand, but officials declined to specify exact demand forecasts or predict when price moderation might occur, underscoring a commitment to monitor the market and intervene as needed.

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3 Oct 2022

Data on Applications for Interim Housing Assistance under Provisional Parenthood Housing Scheme

In 2021 and 2022, HDB received a high number of applications for the Parenthood Provisional Housing Scheme (PPHS), but only about half of those invited to select a flat did so, indicating many had other housing options.
Successful PPHS applicants are invited to select a flat and sign a tenancy agreement the month after applying, with keys issued immediately, allowing for immediate move-in without a waiting period.
Due to increased demand during the COVID-19 pandemic, PPHS supply remains limited and cannot accommodate all applicants, so HDB encourages other interim housing arrangements and offers Interim Rental Housing for low-income households on a case-by-case basis.

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3 Oct 2022

Quarter-on-quarter Change in HDB Rental Price Index and Average Rentals of HDB Flats in Open Market

Ms He Ting Ru requested quarterly data on HDB rental price index and average rentals by flat type for the past five years.
Minister Desmond Lee clarified that HDB does not publish a rental price index but provides median rental figures, which better reflect market trends than averages.
Median rentals for all flat types increased by $100 to $500 from the third quarter of 2017 to the second quarter of 2022.
The information is available on the HDB InfoWEB and presented in a table for reference.
The focus is on median rentals as a more reliable indicator of open market rental price movements.

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