Oral answer by Ministry of National Development on shortening waiting time for HDB BTO flats in support of marriage and parenthood objectives

Oct 20, 2022

Questions No: 3572 and 3621

Questions by: Ms Denise Phua Lay Peng and Ms Foo Mee Har

*3572 Ms Denise Phua Lay Peng asked the Minister for National Development to encourage marriage and parenthood, whether the Government will consider (i) advance construction of more HDB BTO projects to shorten the waiting period of first-time applicants and (ii) extension of the Parenthood Provisional Housing Scheme to couples awaiting their BTO flats and whose household income is between $7,000 and $14,000, instead of only to those earning $7,000 and below.

*3621 Ms Foo Mee Har asked the Minister for National Development what specific measures can the Government implement to shorten the waiting time for new HDB BTO projects to less than three years going forward.

Answer:

          Since 2018, HDB has been offering BTO flats in some projects with shorter waiting times of around three years or less. This is achieved by bringing forward the construction works for specific sites that are ready for development. To date, close to 11,000 BTO flats with shorter waiting times have been offered, of which around 7,200 were offered between 2020 and 2022, that is, during the pandemic.

The pipeline of shorter waiting time flats has been impacted during the pandemic due to construction delays and disruptions as well as higher BTO demand. 

To meet the strong housing demand, HDB has ramped up the supply of BTO flats to 23,000 flats per year in 2022 and 2023, or a 35% increase from last year, and is also prepared to launch up to 100,000 new flats from 2021 to 2025, if needed. Where possible, we also endeavour to launch more BTO projects with shorter waiting times, subject to site and infrastructure readiness.

While waiting for the completion of their new flats, most flat buyers continue to stay with family members or relatives, or rent on the open market. The Parenthood Provisional Housing Scheme (PPHS) provides an additional temporary housing option for eligible households.

Given the limited supply of PPHS flats, the income ceiling of $7,000 was introduced in August 2021, along with some other criteria, to prioritise those who are less able to afford renting on the open market. The income ceiling of $7,000 is pegged to the typical income ceiling for 3-room BTO flats in the non-mature estates. It is also well above the median monthly household income of PPHS applicants, which was $5,700 before the income ceiling was introduced and $4,400 in the past year since the income ceiling was put in place.

While we are on track to double the supply of interim flats for PPHS between 2021 and 2023, the supply remains limited. As such, we will retain the income ceiling so as to continue prioritising those who are less able to afford renting on the open market.

Households whose incomes exceed the $7,000 ceiling but who need help with temporary housing due to exceptional circumstances, such as high medical expenses or other needs, may approach HDB. HDB will consider their requests on a case-by-case basis.