Tag Archives: Mah Bow Tan

More rental flats needed, say MPs

Posted on 30 May 2011 | Comments Off on More rental flats needed, say MPs

Members of Parliament (MPs) said there is a need to raise the supply of rental flats significantly, to match demand.

They said despite a shorter waiting time, there are still segments of the population who need rental flats quickly.

Their comments come a day after Minister for National Development Khaw Boon Wan said there was a need to ramp up the supply of these flats by “tens of thousands”.

MPs said based on their Meet-The-People sessions, demand for rental flats comes from low-income families and households facing difficult times.

MP for Tanjong Pagar Group Representation Constituency (GRC) Chia Shi-Lu said: “Giving a conservative estimate of five cases a week, 20 cases per month, and about 200 cases a year — and we spread that out among the 87 zones in Singapore — we’re looking at 15 to 16,000 applicants”.

Rental flats are meant to cater to poor and needy families who have no housing options.

Today, there are some 45,000 units in Singapore.

With rent as low as S$26 a month, the demand for such units is always high.

Even after tightening rules to prevent abuse of the system, the wait for one of these units can be relatively long.

HDB said the queue for rental flats is now about 1,700 applicants, down from 4,600 in 2009.

Waiting time has also been reduced from an average 21 months in 2008, to about eight months currently.

Even so, new cases continue to pour in every month.

In March this year, former National Development Minister Mah Bow Tan disclosed that HDB received 190 applications for rental flats each month last year.

On concerns from existing home owners that their property value may drop if rental flats were built in their neighbourhood, Dr Chia said more education is needed.

He said he has yet to see evidence of property values being affected by their proximity to rental flats, and added that other factors such as location and availability of amenities are likely to affect prices more.

MP for Holland-Bukit Timah GRC Liang Eng Hwa said rental blocks should be spread out across the island and integrated into neighbourhoods.

With the recent increase in Build-To-Order flats, and the proposal to have more rental units, Mr Khaw said the industry cannot cope with the demand for nearly 40,000 flats a year.

The industry currently has the capacity to build half that number, the Singapore Contractors Association said.

It faces many challenges in trying to ramp up supply so quickly – including a tight labour situation and rising costs due to rising foreign worker levies, higher dormitory and transportation costs.

In addition, there is the issue of sustainability.

Singapore Contractors Association 2nd vice-president Kenneth Loo said: “For the industry, it wouldn’t be good if (in) one year, we double the capacity, and the following year, we have to halve it”.

Channel NewsAsia understands HDB has been speaking to construction companies since last year about the possibility of ramping up the supply of new flats.

There are currently an estimated 20 regular HDB contractors.

Source : Channel NewsAsia – 30 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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