Written Answer by Ministry of National Development on whether higher one-off housing grants for those who want to switch to resale flats in view of the rising prices and short-term rental financial assistance will be provided

Jul 5, 2021

Mr Chong Kee Hiong: To ask the Minister for National Development with regard to applicants who have to forgo their BTO flats due to further construction delays arising from the COVID-19 pandemic, whether the Ministry will consider providing (i) higher one-off housing grants for those who want to switch to resale flats in view of the rising prices and (ii) short-term rental financial assistance for those renting apartments especially for young couples starting their families. 

Answer:

The construction industry is one of the sectors hardest-hit by the COVID-19 pandemic. The Circuit Breaker last year, coupled with the stringent safe management measures imposed at worksites, and the tightening of border controls for workers from South Asia, have led to delays for many private and public sector projects, including HDB’s Build-to-Order (BTO) projects.

We recognise that the delays to the completion of BTO flats have caused inconvenience to flat buyers. HDB is working with its contractors and consultants to expedite construction work as much as possible, while ensuring that project quality and safety standards are not compromised.

Meanwhile, flat buyers are encouraged to find alternative housing arrangements with family members, relatives or on the open market. Where they are unable to do so, first-timer applicants who are waiting for their BTO flats can apply for temporary housing under the Parenthood Provisional Housing Scheme (PPHS). Given the limited supply of PPHS flats, we are considering how to finetune allocation to give priority to families in greater need of temporary housing. We are also studying ways to increase the supply of temporary housing to better support affected flat buyers in need of housing. We will provide more details on these measures when ready.

For low-income households with no family support and no other housing option, HDB will consider offering Interim Rental Housing (IRH) on a case-by-case basis.

Today, flat buyers who cancel their flat booking will either have to forfeit their option fee, or five per cent of the flat purchase price, and wait out a one-year period before they can apply for subsidised housing again, whether a new flat from HDB or a resale flat with grants. These measures are in place to ensure that buyers are serious when they buy a flat, and do not deprive others with urgent housing needs of the opportunity to do so.

However, we recognise the challenges faced by flat buyers given the COVID-19 situation and HDB will consider waiving forfeiture based on an assessment of the flat buyers’ specific circumstances. This includes flat buyers who have been affected by BTO delays and who cancel their BTO flats to buy a resale flat due to urgent housing needs. The waiver of the one-year wait out period will allow first-timer families with urgent housing needs to receive housing grants if they decide to buy a resale flat. Resale flats are generally available for immediate occupation, and buyers can choose from a wide range of flats, according to their preferences and budget. Eligible first-timer families can receive up to $160,000 in grants when they purchase a resale flat. As the existing housing grants are already substantial, we currently have no plans to provide a once-off housing grant. Nevertheless, we will continue to monitor the market situation and explore how we can better support home buyers with urgent interim housing needs.