Trends for Residents in Public Rental Housing Subsequently Owning Their Own Homes
Ministry of National DevelopmentSpeakers
Summary
This question concerns the proportion of public rental residents transitioning to home ownership and young adults forming new rental households, as raised by Ms Mariam Jaafar. Minister for National Development Desmond Lee stated that about 4,600 households moved to home ownership in the last five years, with 36% moving within five years and 32% within five to ten. Approximately 440 young adults aged 35 or younger applied for their own rental units upon forming a family nucleus during this same period. The Minister noted that most buyers purchased subsidised Build-To-Order flats using government grants and one-to-one guidance from the HDB Home ownership Support Team. Coordinated support also continues through the Community Link initiative to uplift rental families with children by working with the Ministry of Social and Family Development.
Transcript
88 Ms Mariam Jaafar asked the Minister for National Development (a) what proportion of residents in public rental housing (excluding those on interim rental housing who are waiting for their BTO flats to be completed) go on to own their own homes within three, five and 10 years; and (b) what proportion of young adults in public rental housing go on to apply for another rental unit when they form their own family nucleus.
Mr Desmond Lee: In the last five years, about 4,600 public rental households moved to home ownership, or about 2% of rental households per year. Among these households, 36% moved to their own homes less than five years after they entered public rental, 32% in five to 10 years, and the remaining 32% after more than 10 years. Less than 10% moved to home ownership within three years as households in public rental would generally need some time to stabilise their social or financial situation before purchasing a home. In addition, more than three quarters of the rental households who achieved home ownership bought subsidised BTO flats, which typically have a waiting time of at least three years.
Over the same time period, about 440 young adults aged 35 or younger who were previously occupiers in a public rental flat went on to rent another flat when they formed their own family nucleus.
We will continue to support public rental tenants to buy their own homes by providing generous grants and one-to-one guidance from HDB’s Home ownership Support Team. We will also continue to work closely with MSF and other partners under the Community Link initiative to provide coordinated support to uplift families with children staying in public rental flats.