Amount Spent by HDB in Upgrading Programme for Homeowners in 2017 Compared to 2007
Ministry of National DevelopmentSpeakers
Summary
This question concerns HDB upgrading programme expenditures and their impact on flat values as raised by Mr Saktiandi Supaat. Minister for National Development Lawrence Wong stated that FY2017 spending was approximately $590 million, compared to $580 million in FY2007. To date, 253,000 flats have benefited from major upgrading works, with another 230,000 units to be covered under the Home Improvement Programme extension. These government-subsidised works help maintain property values and resolve maintenance issues that could otherwise cost owners up to $25,000. The programmes further enhance the living environment through new amenities and increased convenience, ensuring that aging flats remain vibrant and well-maintained.
Transcript
85 Mr Saktiandi Supaat asked the Minister for National Development (a) how much has HDB spent in its upgrading programme for home owners in 2017 as compared to 2007; (b) how many home owners benefited from the upgrading works; and (c) how have these works translated to enhancing the value of the flats.
Mr Lawrence Wong: The estimated expenditure spent in FY2017 on all HDB upgrading programmes was about $590 million. In FY2007, the total amount spent was about $580 million.
If we look at just the Main Upgrading Programme (MUP) and the Home Improvement Programme (HIP) alone, about 253,000 flats have benefited from the upgrading works so far, out of a total of 450,000 eligible flats built up to 1986. Another 230,000 flats will benefit from the extension of HIP to cover the flats built between 1987 and 1997.
Upgrading works enhance the value of the flat in several ways, depending on the type of upgrading work. Under programmes such as the Lift Upgrading Programme and the Remaking our Heartland Programme, the Government builds new amenities which improve the living environment, and result in more convenience to residents and added vibrancy to the area. As for programmes such as the HIP, the Government heavily subsidises the works to help resolve common maintenance problems of aging flats. By keeping the flats in good condition, HIP helps flats maintain their value even as they age. Without HIP, potential buyers of older flats and flat owners would have to undertake the works themselves, which can cost up to about $25,000 per flat.