Tag Archives: Khaw Boon Wan

Rental flats supply set to increase

Posted on 29 May 2011 | Comments Off on Rental flats supply set to increase

Minister for National Development Khaw Boon Wan said there is a shortage of rental flats in Singapore, and there is a need to ramp up supply by “ten of thousands”.

However, Mr Khaw said it will take some time to make up this shortfall, as the construction industry is unable to cope with the sudden surge in demand.

Mr Khaw spoke about the need to ramp up the supply of rental flats, during a youth forum at the Woodlands Community Club.

“Single mothers, divorcees (may) suddenly have no flat (or) no money to buy (one), so they are counting on rental (flats),” Mr Khaw said.

“Then there are all kinds of HDB rules that prevent them from renting. The rules are not frivolous.

“The problem HDB faces is that they are just short of rental flats. It’s quite clear in my mind — we need to ramp up the building of rental flats as quickly as we can. Not just by a few thousands; actually we need to (increase) by tens of thousands. And the earlier the better.”

This comes two days after the HDB announced the supply of new BTO flats will be increased this year from 22,000 to 25,000 units.

Mr Khaw said the HDB needs to build “almost similar numbers” of rental flats, but said there are challenges.

While Mr Khaw is keen to ramp up the supply of new flats quickly, he admitted the construction industry cannot cope with this sudden surge in demand.

The industry is used to building some 15,000 units a year.

As such, Mr Khaw said it will take some time to meet demand.

Mr Khaw added he needs to study the capacity of the construction industry to understand how fast flats can be built.

Meanwhile, Mr Khaw was asked at the forum, about the large presence of foreigners in Singapore.

Some in the audience said they felt threatened when it came to competition for jobs.

Mr Khaw acknowledged that too many foreigners were allowed in, the last few years, and there was a need to calibrate the numbers.

But he noted the relationship between economic growth and foreign labour, and said by reducing their numbers, Singaporeans are accepting there will be trade-offs.

Mr Khaw said: “We thought (taking foreigners in) was important to bring wages to people’s pockets, so that we can grow as fast as we can… (and) catch up with other countries.

“But now, we get the message that ‘we don’t want so much growth, that we are prepared to accept slower growth’.

“It actually affects the youth immediately, because when you slow down growth, it means that job opportunities also come down (and) starting pay also comes down”.

Other issues touched on at the forum included alternative pathways for youths who want to pursue the arts, and global competition.

Source : Channel NewsAsia – 29 May 2011

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HDB will build flats ‘ahead of demand’

Posted on 29 May 2011 | Comments Off on HDB will build flats ‘ahead of demand’

Just days into his new job as National Development Minister, Mr Khaw Boon Wan has instructed the Housing and Development Board (HDB) to build flats “ahead of demand” – a significant change in policy from the “Build To Order” (BTO) approach which has been in place for the past 10 years.

Mr Khaw’s announcement coincided with HDB’s launch of six BTO projects – the largest number launched at once. In addition, he confirmed that the number of BTO units this year would be increased from 22,000 to 25,000 units, by bringing forward projects scheduled for early next year.

Writing on his blog “Housing Matters”, Mr Khaw said: “Given robust demand, I told them proceed to build, knowing that the orders will definitely come.”

While his approach may appear to be one shunned by his predecessor Mah Bow Tan, Mr Khaw made it clear that the directive to “build ahead of demand” would only apply to “this period of demand backlog”.

Under the Registration for Flat System in the ’90s, the Government was building some 30,000 flats annually. But the system had its flaws, with Mr Mah saying on numerous occasions in Parliament that it was difficult to discern how much of the demand was genuine.

At one point, the Government was left with 31,000 unsold flats and it took the HDB five years to clear its stock of unsold flats.

Mr Khaw said the Government could return to the BTO approach “after we have stabilised the situation”.

The six BTOs would bring 4,000 flats into the market, in Tampines, Punggol, Pasir Ris and Woodlands.

Welcoming the news, Mountbatten Member of Parliament Lim Biow Chuan said it “shows that policies must adapt along the way”.

“While a number of MPs had suggested to Mr Mah to build a buffer stock of flats, Mr Mah had been ‘cautious’ as he had been questioned many times in Parliament over the excess supply of unsold flats,” Mr Lim said.

ERA Realty Network’s key executive officer Eugene Lim noted that the move would also allow Singaporeans to take possession of their flats faster.

Property firm Cushman and Wakefield’s vice-chairman Donald Han said HDB prices would be “affected if there is an oversupply” but demand would still remain in mature estates. “Market demand is very picky, people want good locations and good choices,” he said.

With the HDB planning to ease the S$8,000 income ceiling on flats -something hinted by Mr Mah during the General Election – Mr Khaw also pledged to “sustain the new pace of building” into next year in anticipation of strong demand.

He said: “One priority is to help young couples own their own homes as soon as possible, so that they can start their family and have babies. This is a national priority – promoting marriages and births – and MND must facilitate it to its best ability.”

There are some 15,000 first marriages among Singaporeans annually and 70 per cent of new couples get their first homes through the BTO system.

Source : Today – 28 May 2011

 

 

 

 

 

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