Written Answer by MND on whether there is an oversubscription of HDB flats under the Parenthood Provisional Housing Scheme in light of the projected BTO construction delays coupled with increased prices in the property market due to the pandemic

May 11, 2021

Dr Shahira Abdullah: To ask the Minister for National Development in light of the projected BTO construction delays coupled with increased prices in the property market due to the pandemic (a) whether there is now an oversubscription of HDB flats under the Parenthood Provisional Housing Scheme; (b) what additional measures will be taken if there is an oversubscription; and (c) whether there will be an introduction of further measures that may further help young couples who need a home to start a family in the current climate.

Answer:

The Parenthood Provisional Housing Scheme (PPHS) provides an additional temporary housing option for households awaiting the completion of their new flats. 

In 2020, HDB offered 160 PPHS flats and received 2,350 applications, compared to the 1,370 applications received in 2019. While the number of applications has increased, not all applicants may be in urgent need of temporary housing, or some may have other options, as about 40% of successful PPHS applicants did not turn up for flat selection. 

The supply of PPHS flats is limited and depends on the availability of vacant flats, such as those in vacated blocks that are not immediately needed for redevelopment. HDB is working towards a more stable supply, and more options for families who need temporary housing. Meanwhile, on a case-by-case basis, HDB may offer interim rental housing to those with no other housing options. 

Besides buying new flats from HDB, first-timer buyers with urgent housing needs may consider buying a flat on the resale market and can receive up to $160,000 in housing grants. They can choose from a wide range of resale flats, which are generally ready for immediate occupation, according to their preferences and budgets. 

The recent tightened border measures for short term visitors and long term pass holders (including Work Permit and S-Pass Holders) with recent travel from India, has severely constricted the supply of workers needed for the construction industry and will inevitably result in a further delay for ongoing BTO projects. Barring unforeseen circumstances, projects could be delayed by a further 3 months, on top of the 6 to 9 months previously communicated. HDB will update affected flat buyers progressively. MND and HDB will continue to monitor the situation closely, and see how best to render assistance to those affected by the delays.