HDB singles scheme: More than 80% qualify, says Khaw

SINGAPORE — More than eight in 10 singles aged 35 and above here, excluding retirees, earn below S$5,000 and will thus qualify to apply for a new two-room flat from the Housing and Development Board (HDB), said National Development Minister Khaw Boon Wan in Parliament yesterday.

Addressing concerns from Member of Parliament (MP) Lee Bee Wah (Nee Soon GRC), who had asked for a time frame for the review of the salary cap for singles who can buy new flats, Mr Khaw said he preferred to “start cautiously” and assess demand before reviewing the cap.

“We do not know how long or how fast we will reach the end point, but let’s start off cautiously and progressively open up. That, I think, is a much better approach than to open up in a very liberal manner only to disappoint many at the first stage and we are forced to tighten up,” he added.

On Friday, Mr Khaw announced during the parliamentary debate on his ministry’s spending plans that from July, singles aged 35 and above, who earn less than S$5,000, would be eligible to buy new two-room BTO flats.

Yesterday, Mr Khaw said he had received feedback that the new scheme is something that only a few can enjoy. “This is not true,” Mr Khaw said, as he cited the fact that more than 80 per cent of singles aged 35 and above, excluding retirees, earn below S$5.000.

The National Development Ministry yesterday moved to address another segment of the housing market, as it announced that 20 per cent more rental flats will be provided this year — up from 50,000 units last year.

The Ministry’s Senior Parliamentary Secretary Maliki Osman also assured the House that the Government has no plans to adjust the public rental structure, even though market rents have increased significantly.

During yesterday’s debate, several MPs, including Mr Lim Biow Chuan (Mountbatten SMC) and Mr Png Eng Huat (Hougang SMC), raised concerns over the rental “cliff” that tenants face when their income rises above S$800.

For these tenants, the HDB waives their rent increase, so that they continue to pay the lower rent, for one tenancy term of two years, and they will not suffer a net loss in income, Dr Maliki said. “At the end of two years, if their income increase is still insufficient relative to the rent increase, the HDB will continue to suspend the rent increase. As a general rule, no one in the HDB’s 1-room and 2-room rental units will see their wage increases taken away by HDB through rental adjustments,” he added.

As to a call from MP Lee Li Lian (Punggol East SMC) to allow Singaporeans with foreign spouses holding long term visit passes here to be able to apply for public rental flats, Dr Maliki said the rules will be reviewed “from time to time”.

“More importantly, let me assure the MPs, that in our administration of the rules, we will be sympathetic and responsive to those in need,” he added.