More rental tenants bought homes in last 2 years: MND

SINGAPORE — The pace of home ownership for those living in Housing and Development Board (HDB) rental flats picked up over the last two years, according to figures released by the National Development Ministry.

While 1,440 households progressed to home ownership between 2008 and last year, more than 40 per cent of them — or 630 rental tenants — did so in 2011 and 2012.

The ministry said this as it responded to questions filed by Members of Parliament on the issue. It also pointed out that first-timer low-income households could buy a two-room flat for as little as S$16,000 in the latest Build-to-Order launch, after factoring in government grants.

Of the 49,500 public rental flats available, 48,200 units are occupied. By 2017, the number available will go up to 60,000 units.

There are currently 1,900 applicants waiting to be allocated a rental flat, Minister of State (National Development) Maliki Osman said.

Since 2011, more than half of those who applied for rental flats from the HDB were found to be ineligible for such units. Most of those rejected could afford to purchase a small flat or had family support.

“We have to turn down their applications, so that we can focus our help at the truly needy. Where there are genuine hardship cases, HDB does exercise flexibility, even if they do not fulfil the eligibility criteria,” Dr Maliki said.

Jurong GRC Member of Parliament David Ong asked if rental flats could be rented out expeditiously to cater to the high demand.

In response, Dr Maliki said the waiting time for rental flats has gone down from 21 months to an average of seven-and-a-half months.

Sumita Sreedharan