Written answer by Ministry of National Development on the impact of 10-year minimum occupation period for HDB flats under the Prime Location Public Housing model on projected birth rate

Nov 7, 2022

Mr Zhulkarnain Abdul Rahim: To ask the Minister for National Development

(a) whether the Ministry has conducted any studies on how the 10-year minimum occupation period (MOP) for HDB flats under the Prime Location Public Housing model may impact projected birth rate trends and impede or discourage young couples from having any or more children for the duration of this extended MOP, especially those living in smaller-sized flats; and

(b) if not, whether it will consider conducting such a study.

Answer:

HDB flats are meant for long-term owner-occupation, and the minimum occupation period (MOP) ensures that flat buyers purchase HDB flats with the intent of living in the flat. This safeguards HDB flats for households with genuine housing needs, and deters speculative purchases, thereby helping to keep HDB flats affordable.

2        Given the prime locations and the additional subsidies provided for flats offered under the Prime Location Public Housing (PLH) model, it is even more critical that we reduce possible speculative demand and prioritise flats for genuine owner-occupiers. The MOP for PLH flats is therefore set at 10 years. PLH projects also offer 3- and 4-room flats for young couples starting a family. In addition, the MOP for other new and resale flats in non-PLH projects remains at 5 years. This gives home seekers a range of housing options to meet different needs.

3        We are committed to support the marriage and parenthood aspirations of Singaporeans. To meet the strong housing demand, HDB has been ramping up the supply of Build-To-Order (BTO) flats. HDB will launch up to 23,000 flats per year in 2022 and 2023, and is prepared to launch up to 100,000 flats in total from 2021 to 2025, if needed. With effect from the Aug 2022 BTO exercise, more BTO units in non-mature estates will also be set aside for first-timer applicants. Buyers can also choose from a wide range of resale flats for different budgets and needs, and these flats are generally ready for immediate occupation.

4        We will continue to review our policies to ensure affordable and accessible public housing for all Singaporeans, and to support Singaporeans in owning their first home.