Proposal to Ramp Up Construction of HDB Flats as Families Become More Financially Prudent Amidst COVID-19 Pandemic
Ministry of National DevelopmentSpeakers
Summary
This question concerns Mr Kwek Hian Chuan Henry’s proposal to ramp up HDB construction, especially in mature estates, while reducing private developments as families become more financially prudent. Minister Desmond Lee responded that the BTO supply was increased from 14,600 units in 2019 to approximately 16,700 units in 2020 to provide varied options. He noted that while mature estate BTO supply is limited, homebuyers can access resale grants of up to $160,000, and private housing supply has already been reduced. Minister Desmond Lee stated that housing supply is calibrated holistically by factoring in economic conditions, population trends, and market sustainability. The government will continue to monitor the COVID-19 situation to ensure housing supply meets the evolving demand and aspirations of the population.
Transcript
46 Mr Kwek Hian Chuan Henry asked the Minister for National Development whether HDB can consider ramping up the number of flats constructed, especially in mature estates, and reduce the number of upcoming condo developments as families become more financially prudent during this COVID-19 period and beyond.
Mr Desmond Lee: The Government plans the supply of public and private housing units under the respective Build-To-Order (BTO) and Government Land Sales (GLS) Programmes carefully, taking into account factors such as prevailing economic and housing market conditions, as well as longer-term demographic and population trends. This is to ensure that the injection of housing units meets demand over the near to medium term, while being sustainable for the entire housing market.
To meet demand for public housing, HDB has increased the BTO flat supply from 14,600 units in 2019 to about 16,700 units this year. The flat supply includes a good mix of units in the mature and non-mature estates, to provide a range of choices to home seekers with different budgets and needs.
Given the limited supply and high demand for BTO flats in the mature estates, flat buyers who wish to buy flats in the mature estates can consider buying a resale flat in the open market, where first-timer buyers may receive up to $160,000 in housing grants.
For private housing, URA has reduced the supply of private residential units on the Confirmed List for the 2H2020 GLS programme, after considering the COVID-19 situation, the economic slowdown and uncertain business outlook.
The Government will continue to monitor the impact of the COVID-19 situation on the housing market closely, and calibrate the near and medium term supply of public and private housing units holistically to account for potential shifts in the housing demand and aspirations of the population.