Challenges in Ramping Up HDB Flat Supply
Ministry of National DevelopmentSpeakers
Summary
This question concerns MP Chong Kee Hiong’s inquiry on expediting HDB flat construction and the challenges in ramping up supply. Minister for National Development Lawrence Wong explained that HDB shortens waiting times by calling tenders once designs are ready and utilizing productivity measures like precast technology. He identified site availability and infrastructure requirements, such as transport and sewerage, as primary challenges to increasing production. To assist those with urgent needs, HDB is studying constructing some projects ahead of their sales launches to provide flats with shorter waiting times. The government will continue to monitor the market and calibrate flat supply to be responsive to the housing needs of Singaporeans.
Transcript
27 Mr Chong Kee Hiong asked the Minister for National Development whether more resources can be allocated to expedite the construction of HDB flats for young couples and what are the challenges, if any, HDB faces in ramping up new flat supply.
Mr Lawrence Wong: Helping young couples own their first home is one of our key priorities. The ramp-up of Built-To-Order (BTO) flat supply between 2011 and 2014 has helped to clear the first-timer demand backlog. Most first-timers are now able to select a flat within their first or second application, and definitely on their third try. We will monitor the market closely and calibrate our flat supply to be responsive to the housing needs of Singaporeans.
To shorten waiting time for flat buyers further, the Housing and Development Board (HDB) has since 2011 been calling tender for many projects as soon as designs are ready, instead of the previous practice of doing so only after 70% of flats have been booked. Hence, waiting time today is mainly down to construction time. In this regard, HDB has also adopted various productivity measures in the design and construction phases, such as the use of precast technology, to expedite construction.
In terms of challenges in ramping up new flat supply, immediate site availability is one, as time is often needed to ensure that existing encumbrances and uses on the sites are cleared. There is also a need to ensure that there will be sufficient infrastructure capacity, such as transport, sewerage and drainage, to support the new housing developments.
Nonetheless, we recognise that some young couples want a new home as quickly as possible. HDB is studying how we can advance the construction work of some BTO projects and build them ahead of their sales launches. While it is not feasible to do so for the entire flat supply due to land constraints and risk of over-supply, we can potentially do this for some projects every year. This will provide some flats with a shorter waiting time to cater to couples who need a new BTO flat more urgently.