Proposal for HDB Rents to be Based on Per Capita Income

31 Ms Joan Pereira asked the Minister for National Development whether the Ministry will consider charging rentals under HDB's Public Rental Scheme based on per capita income instead of the household income.

Mr Lawrence Wong: The Housing and Development Board's (HDB's) public rental rates are calibrated to provide subsidies where they are most needed and to encourage rental households to purchase home ownership flats when they are ready. More than half of HDB's rental households pay basic rents, which are now set at $26 a month for a 1-room flat and $44 a month for a 2-room flat. The remaining households pay higher monthly rents based on their household incomes. The majority of HDB rental tenants have a household size of three or less.

However, HDB recognises that some households do face difficulties paying higher rents, for example, due to medical needs or a large number of dependants. This is why HDB already exercises flexibility to allow tenants to pay a lower rent depending on each household’s circumstances.