Written Answer by Ministry of National Development on applications for flats under the Public Rental Scheme in 2021

Feb 15, 2022

Mr Edward Chia Bing Hui: To ask the Minister for National Development (a) what is the number of flat applicants under the Public Rental Scheme in 2021; (b) how many of these applications have been successful; (c) how many of these successful applicants are placed on the waiting list and what is their estimated waiting time; (d) what is the Ministry’s current assessment of the housing situation in Singapore; (e) whether the Ministry can provide an update on its plans and alternative housing options for Singaporeans.

Answer:

In 2021, HDB received 10,240 requests for rental flats, of which 3,230 or 32% were approved. The remainder comprised general enquiries on eligibility, incomplete requests where HDB is still waiting for a further response from applicants, and requests from applicants who did not meet the eligibility conditions.

There are 1,800 approved applicants currently awaiting allocation of a rental flat, and the average waiting time is less than a year. While the total number of vacant rental flats exceeds the total number of approved applicants, a majority of the vacant rental flats need to be spruced up before they can be let out. Manpower shortages in the construction industry have resulted in a slightly longer wait for flats to be spruced up. Applicants will also need to be matched to the flat type and location they applied for. Flat types and application zones that are more popular tend to have a longer waiting time due to limited supply.

HDB has taken steps to expedite sprucing works, such as engaging more contractors to complete the works, and to facilitate key collections as quickly as possible. For applicants who are in urgent need of a rental flat, such as those with medical grounds or other extenuating circumstances, HDB will prioritise and expedite flat allocation. In 2021, about 40% of approved applicants were given priority allocation.

In terms of the overall housing situation, there is currently strong demand for public housing, as shared previously with this House. To meet this demand, HDB will ramp up the supply of BTO flats over the next two years, by launching up to 23,000 flats per year in 2022 and 2023. This represents a significant increase of 35 percent from the 17,000 flats launched in 2021. The increased supply of flats will provide more housing options for Singaporeans.

Our public housing policy continues to prioritise homeownership as a key tenet of Singapore’s social compact. The Government provides significant subsidies to ensure that homeownership remains attainable for Singaporeans. For those who are not ready for homeownership, other than the Public Rental Scheme, there is also the Interim Rental Housing (IRH) for lower-income households who are in the queue for rental flats or awaiting completion of their flats. IRH is offered on a case-by-case basis to those with no other temporary housing options. Other households awaiting completion of their flats can also apply for the Parenthood Provisional Housing Scheme (PPHS), for which HDB is doubling the supply over the next two years, or seek available options in the rental market.

MND closely monitors trends and social norms to identify market gaps, and we are constantly studying how Singaporeans’ preferences and aspirations evolve over time. We will continue to develop our public housing programme and offerings, to ensure that public housing remains responsive to the changing needs of the population.