Building Affordable Homes of Value
As demand for public housing remains strong, we continued to provide a steady supply of new flats this Financial Year (FY) to meet Singaporeans’ housing needs. At the same time, a new housing model was launched and policies enhanced, to keep public housing affordable and inclusive.
In FY2021, HDB launched 17,322 Build-To- Order (BTO) flats across sales exercises in May, August, and November 2021, as well as February 2022. The flats, which are priced with generous subsidies, were offered across 26 projects in mature and non-mature towns. We offered another 4,292 flats for sale under the Sale of Balance Flats (SBF) exercises in May and November 2021.
In addition, 1,422 flats were available for open booking. Under this sales mode, buyers can submit an online application and book a unit as early as the next working day.
On top of the subsidised prices, eligible flat buyers, particularly first-timers, continued to enjoy generous housing grants of up to $80,000 to help them with the purchase of their new HDB flat.
Commitment to Flat Buyers
HDB has been working hard to deliver on our public housing projects, as the construction industry gradually recovers from the impact of COVID-19. Close to 15,000 home owners collected keys to their new flats in FY2021, even more than those who did so pre-pandemic in 2019.
To reduce construction delays, we helped contractors prioritise work areas, secure manpower and material supplies, and get approvals for less noisy construction works to carry on over weekends and Public Holidays. In addition, a package of financial assistance measures was rolled out to help ease contractors’ financial pressure from pandemic-induced spikes in manpower costs, supply chain constraints, and other operating expenses.
Waterway Sunrise II was the only project this FY where the delay has exceeded one year, in part exacerbated by poor contractor performance, and will be completed beyond the Delivery Possession Date. We brought on board a replacement contractor to complete the project and will compensate flat buyers the maximum reimbursement sum that they are eligible for under the COVID-19 (Temporary Measures) Act.
To help affected buyers who are unable to find alternative housing arrangements, we increased the supply of temporary housing under the Parenthood Provisional Housing Scheme for first-timer families, and offered Interim Rental Housing to low-income households. We also waived forfeiture for affected buyers who wish to cancel their flat booking and buy a resale flat due to urgent housing needs.
Keeping Housing in Prime Locations Inclusive
In this FY, 3 projects were offered under the new Prime Location Public Housing (PLH) model — River Peaks I & II in November 2021, and subsequently King George’s Heights in February 2022.
The PLH model was announced in October 2021 to keep public housing in central locations affordable, accessible, and inclusive. If left solely to market forces, these flats with their attractive locations and attributes, would likely only be affordable to those who are better-off. Hence, flats under the PLH model are priced with additional subsidies that will be recovered when flat owners subsequently sell their flat. Other policy measures include a longer Minimum Occupation Period of 10 years, restrictions on renting out the whole flat, adjusted priority quota for flat allocation under the Married Child Priority Scheme, and ringfencing the pool of eligible resale buyers to those who meet the prevailing BTO conditions. These measures aim to discourage property speculation and ensure that public housing continues to reflect the diversity of Singapore’s society.
Promoting a Stable and Sustainable Property Market
Despite the economic impact of COVID-19, transaction volume and prices were high for HDB resale flats amidst a low interest rate environment. To encourage financial prudence as well as moderate the increase in housing prices, property cooling measures were implemented. From 16 December 2021, the Total Debt Servicing Ratio threshold for buyers taking a loan from approved Financial Institutions was tightened from 60% to 55%, along with a reduction of the Loan-to-Value limit for those taking a housing loan from HDB, from 90% to 85%.
Complementing these measures, we announced that we would increase the public housing supply by about 35% in 2022 and 2023, up from 17,100 flats in 2021, to cater to strong housing demand. If needed, up to 100,000 flats in total will be launched from 2021 to 2025.
Teo Hui Qing was part of the team that developed the Prime Location Public Housing Model. It was anticipated years ago that a new housing model would be needed, given the limited locations that were available and suitable to meet housing needs. Laying the groundwork early helped the team to brainstorm a wide range of options for the model, evaluate each option thoroughly, and seek the public’s views.
“It was my first time facilitating public engagement sessions on our housing policy. Many turned up at the focus group discussions and sent feedback through surveys and emails. A few also gave very detailed proposals — almost like a mini thesis! Knowing that people were thinking hard about the topic gave me a greater sense of responsibility over the project, as I recognised that we were deliberating matters close to people’s hearts. PLH is part of our efforts to bring new public housing to the heart of our city, while keeping them affordable and accessible over time. I think it is worth investing all the time and effort to consider the PLH model holistically.“
Teo Hui Qing
Senior Estate Manager
Supporting EIP-Constrained Flat Owners
Some home owners may face difficulty selling their flats at a reasonable price when the ethnic quotas in their block or neighbourhood have been reached. These quotas are part of the Ethnic Integration Policy (EIP) and play a key role in ensuring a balanced mix of ethnic groups in HDB estates and prevent ethnic enclaves.
To augment existing assistance measures for EIP-constrained home owners, we announced that we would buy back flats from eligible EIP-constrained flat owners. Under the EIP buyback assistance, we will determine the buyback price and make an offer for the flat at a fair price after a professional licensed valuer has valued the subject flat. The flats bought back by HDB will be subsequently offered for sale to the public through the Sale of Balance Flats exercises or open booking. A household’s eligibility to book the flat will depend on the prevailing ethnic proportions in the block and neighbourhood when they are invited to select a flat.
Helping Seniors Age in Place
In March 2022, it was announced that HDB will launch the second batch of Community Care Apartments (CCAs) in the later part of 2022, at Health District @ Queenstown. Jointly developed by the Ministry of National Development, Ministry of Health and HDB, CCAs integrate senior-friendly housing with care services that can be scaled according to individual care needs, with the aim of better supporting seniors to age in place independently.
About 200 CCAs will be offered in the project along with other flat types, with common facilities such as roof gardens, fitness stations and community living rooms, to promote social interaction among residents.
Stronger Support for Those in Need
Rental tenants who are working towards home ownership will also benefit from two enhancements to the Fresh Start Housing Scheme which were announced in March 2022. The first is an increase in the Fresh Start Housing Grant from $35,000 to $50,000 for eligible families who want to buy a home of their own. These families also have more housing options, as they can now buy 3-room flats with a shorter lease, as compared to only short-lease 2-room flats previously.
From this FY, singles also need not find a flatmate first before applying for a public rental flat. Under the new Joint Singles Scheme Operator-Run (JSS-OR) model, a Social Service Agency is appointed as the operator to pair tenants up based on factors such as gender, age, and living habits, to foster a comfortable and supportive environment. The JSS-OR is an alternative to the current Joint Singles Scheme where two or more singles jointly apply for a public rental flat.
The pilot JSS-OR flats in Bedok North and Buangkok Crescent come with partitions as well as basic furnishings and appliances to provide tenants privacy and help them move in easily. To better support lower-income singles in need of rental housing, HDB has extended the JSS-OR model to a third site at Bukit Batok West.
As part of the team looking at rental flats, Shirley constantly explores ways to improve the living conditions of low-income vulnerable citizens. During the COVID-19 Circuit Breaker in 2020, when Singaporeans were required to stay home, rough sleepers were offered temporary shelter in shared 1- and 2-room rental flats. This presented an opportunity for Shirley and her team to better understand the challenges faced by rough sleepers, and their needs and preferences. These findings provided input to the JSS-OR model.
“It is heart wrenching to hear stories from people who have no homes to return to. There are various reasons why people end up rough sleeping, and HDB’s JSS-OR model hopes to address some of these challenges on the ground, such as needing to find a co-tenant before applying for a rental flat. We piloted the model at two sites, and they were 5 times oversubscribed, suggesting that our new housing typology fills a need. Though humble, these JSS-OR flats offer our tenants a safe sanctuary – their home.”
Shirley Ong
Principal Estate Manager