Past and Projected Data on Attribution of HDB Housing Demand
Ministry of National DevelopmentSpeakers
Summary
This question concerns MP Leong Mun Wai’s inquiry regarding quantitative data on HDB housing demand drivers, including smaller household sizes, aspirations for larger units, population growth, and non-local rental demand. Minister Desmond Lee replied that from 2001 to 2021, HDB dwelling units increased by 29% while the resident population grew by 10%, with the average household size shrinking from 3.57 to 3.09. To meet robust demand driven by these demographic trends, HDB is on track to launch up to 23,000 flats annually in 2022 and 2023, representing a 35% increase from 2021. Minister Desmond Lee also noted that non-citizens renting HDB flats account for a small proportion of total stock and are regulated by a subletting quota to maintain the heartlands' character. HDB continues to plan supply comprehensively by balancing demographic shifts, socioeconomic conditions, and land constraints to ensure housing adequacy.
Transcript
14 Mr Leong Mun Wai asked the Minister for National Development what is the quantitative data on the attribution of the HDB housing demand observed in the past 20 years and projected for the future that is due to (i) smaller household sizes, (ii) aspirations for larger units, (iii) growing residential population and (iv) rental demand from the growing non-local population.
Mr Desmond Lee: HDB adopts a comprehensive approach in planning new flat supply, taking into account demographic and socioeconomic trends, prevailing market conditions and the supply of resale flats on the open market.
Over the past 20 years, the total number of HDB dwelling units has increased by 1.2% per year from about 850,000 in 2001 to about 1.10 million in 2021. The number of residents living in HDB flats grew by around 0.5% per year, from 2,812,400 in 2001 to 3,091,000 in 2021. Over the same period, the number of HDB dwelling units increased by 29%, while the number of residents living in HDB flats increased by 10%. The average household size among resident households living in HDB flats shrank from 3.57 to 3.09.
For the near future, we expect housing demand to be robust due to strong household formation and societal trends towards smaller households. To meet this demand, HDB is on track to launch up to 23,000 flats per year in 2022 and 2023, a 35% increase from 2021. In doing so, HDB provides flats of different sizes and types within the constraint of Singapore’s very limited land.
Non-citizens renting HDB flats account for a very small proportion of the stock of HDB flats. In 2014, the non-citizen quota for subletting of flats was implemented to prevent the formation of foreigner enclaves and to maintain the Singaporean character of our HDB heartlands.