http://www.todayonline.com/hotnews/EDC091124-0000073/Buffer-flats-for-urgent-needs-Mah
'Buffer flats' for urgent needs: Mah
05:55 AM Nov 24, 2009
SINGAPORE - To meet the demand for public housing, the Housing and Development Board (HDB) projects it needs to build some 10,000 to 12,000 flats annually over the next five years.
That should provide sufficient flats for all first-time homebuyers, usually young couples, National Development Minister Mah Bow Tan said in Parliament yesterday.
But even as the HDB anticipates demand, does it do enough to meet the housing needs of those who book their flats and have to wait until they are built?
MP Cynthia Phua (Aljunied) asked if the Government would set aside 10 per cent of new flats as buffer accommodation. "There are a lot of families who are in urgent need of a home over their head, for example, a pregnancy before marriage," she said.
As this and other housing issues got an airing in Parliament, Mr Mah revealed for the first time that while the policy does not set out to have a buffer, in the "scheme of things" a buffer of that size already exists.
"These are the flats which are available from other programmes like Sers (Selective En bloc Redevelopment Scheme) flats and some buy-back flats," he said. Flats marked for redevelopment, and which have yet to be demolished, are available through a managing agent at "reasonable rentals".
In addition, there are now 2,000 flats available under the Sale of Balance Flats and extra flats from the Build-To-Order (BTO) scheme.
"We will build when, say, the take-up rate is 70 per cent, so there will always be another 30 per cent not taken up ... Once the programme is launched, we will put this 30 per cent on the market for sale," he said.
BTO projections are flexible
The BTO scheme, Mr Mah added, may rely on HDB's medium-term projections but is flexible enough to be ramped up.
For example, HDB is offering 13,500 flats this year, up from the 6,000 originally planned, due to strong turnaround in the second half of the year.
"If the take-up of BTO flats remains strong, we will continue to push out more flats under BTO next year - at least one every month if necessary," he said.
PropNex CEO Mohamed Ismail believes the current HDB supply and projections are "adequate", and
that any more would be an "oversupply" which could "dampen the asset value" of flats, given that there is a "continual supply of resale flats".That should provide sufficient flats for all first-time homebuyers, usually young couples, National Development Minister Mah Bow Tan said in Parliament yesterday.
But even as the HDB anticipates demand, does it do enough to meet the housing needs of those who book their flats and have to wait until they are built?
MP Cynthia Phua (Aljunied) asked if the Government would set aside 10 per cent of new flats as buffer accommodation. "There are a lot of families who are in urgent need of a home over their head, for example, a pregnancy before marriage," she said.
As this and other housing issues got an airing in Parliament, Mr Mah revealed for the first time that while the policy does not set out to have a buffer, in the "scheme of things" a buffer of that size already exists.
"These are the flats which are available from other programmes like Sers (Selective En bloc Redevelopment Scheme) flats and some buy-back flats," he said. Flats marked for redevelopment, and which have yet to be demolished, are available through a managing agent at "reasonable rentals".
In addition, there are now 2,000 flats available under the Sale of Balance Flats and extra flats from the Build-To-Order (BTO) scheme.
"We will build when, say, the take-up rate is 70 per cent, so there will always be another 30 per cent not taken up ... Once the programme is launched, we will put this 30 per cent on the market for sale," he said.
BTO projections are flexible
The BTO scheme, Mr Mah added, may rely on HDB's medium-term projections but is flexible enough to be ramped up.
For example, HDB is offering 13,500 flats this year, up from the 6,000 originally planned, due to strong turnaround in the second half of the year.
"If the take-up of BTO flats remains strong, we will continue to push out more flats under BTO next year - at least one every month if necessary," he said.
PropNex CEO Mohamed Ismail believes the current HDB supply and projections are "adequate", and
But should the economy recover well, a buoyant resale market would result in buyers having to pay more cash above flat valuations, he said.
"In that case, the Government should be prepared to release more than the projected number of 12,000 flats per year," he said, as newly-married couples would not have enough cash on hand.
Mr Mah noted that 80 per cent of new flat buyers pay for their mortgage loans fully using their Central Provident Fund monies.
His message for new home buyers, though: Do not expect to walk into HDB and buy a ready-to-move-in flat as soon as they get married, even with a buffer stock.
They can shorten the waiting time by booking a new flat ahead of their marriage under the Fiance-Fiancee Scheme, and move in once they get married. "Forty per cent of first-time flat buyers make use of this scheme today," he said.
Those who want a flat immediately upon marriage can buy a resale flat, using housing grants.
Member of Parliament Lam Pin Min (Ang Mo Kio) wanted to know if the HDB would refund the registration deposit under the Fiance-Fiancee Scheme, if matrimonial plans "genuinely" failed.
To laughter in the house, Mr Mah wondered how Dr Lam would define "genuine", but added that his ministry would "look into it, as (they) have always done".
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