Less than 20% of vacant rental flats available for new tenants; supply however sufficient to meet demand: Faishal

SINGAPORE — Out of about 8,000 rental flats currently vacant, less than 20 per cent are available for use by new applicants, said Minister of State for National Development Associate Professor Muhammad Faishal Ibrahim in Parliament on Tuesday (March 1). 

He added however that there are no plans to increase the supply of rental flats as there are enough units to meet the current demand.

Assoc Prof Faishal, who revealed figures in response to a question by Sembawang Group Representation Constituency Member of Parliament Mariam Jaafar, said that half of the 8,000 vacant rental flats are reserved for flat owners affected by redevelopment projects or are due for redevelopment. 

“The other half are available to new applicants, of which two-thirds need to be spruced up before they can be let out,” he said.

He added that sprucing up works have been affected due to manpower shortages caused by the Covid-19 pandemic.

To overcome this, the Housing and Development Board (HDB) has appointed additional contractors to supplement its existing pool of term contractors, said Assoc Prof Faishal.

He added that it also then takes time for vacant flats to be matched to eligible new applicants as flat type, location and Ethnic Integration Policy limits need to be considered. 

Leader of Opposition Pritam Singh from the Workers' Party asked in a supplementary question if the Government plans to increase the supply of rental flats and how long it takes to get a flat ready before handing it over to the next tenant.

Assoc Prof Faishal, who referred to his ministry's answer to another parliamentary question last month, said that the waiting time is less than a year and that the situation has not changed much since then.

As to increasing the supply of rental flats, he said that the current numbers are enough to meet the demand and that the Government will continue to watch the situation carefully.

“HDB will continue to prioritise and expedite flat allocation for applicants who are in urgent need of a rental flat, such as applicants with medical needs, or other exceptional circumstances,” he said.