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22-10-11, 20:08
http://www.straitstimes.com/PrimeNews/Story/STIStory_725158.html
Khaw's housing priorities
First home will be kept affordable, more rental flats will be available
Published on Oct 20, 2011
By Daryl Chin & Tessa Wong
NATIONAL Development Minister Khaw Boon Wan has made it clear that his priority for the next two years will be to tend to the housing needs of two key groups: newlyweds and vulnerable families.
Newlyweds will be provided an affordable first home at prices which should not rise faster than their incomes, he has pledged.
As for needy families earning less than $1,500 a month, the Government will make more rental flats available, at subsidised rates which will also come under review.
There was no mistaking the thrust of Mr Khaw's maiden speech in his new portfolio in Parliament yesterday, which he titled Happiness Is An Affordable First Home For All Newlyweds.
'I commit to help all newlywed first-timers earning below $10,000 per month to get their first HDB home as soon as possible,' he declared.
'This will help meet an important social objective of helping them settle down and start their families.'
Already, the Housing Board (HDB) is pushing out 50,000 new flats in the next two years, he said.
'If the demand remains strong, we have the resources and the capacity to build more than 100,000 Housing Board flats during this term of Government,' he added.
Part of this infusion might come from starting Build-to-Order (BTO) projects in new areas like the Bidadari estate located near Upper Serangoon, which can yield about 12,000 units.
He also tapped Tengah town which is located near Chua Chu Kang as another possibility in the longer term.
Once infrastructure such as roads, drainage and the like is completed, Tengah town could yield about 56,000 units.
Besides supply, the minister touched on affordability of public housing.
He acknowledged some home buyers' worries that HDB flat prices will continue to rise amid current market conditions, leading to panic demand.
Having participated in three BTO launches, Mr Khaw said prices of new flats have been 'stabilised', and should remain that way as long as construction costs do not rise dramatically.
He emphasised that as long as their expectations were realistic, newlyweds eyeing new Housing Board flats 'do not need to worry that BTO price will run ahead of their income'.
Mr Khaw's pledges are a relief for buyers like police officer James Tan.
The 26-year-old and his fiancee have a combined income of just under $10,000 and hope to land their dream home soon.
'It does take a load off my mind, that our problems are being addressed,' he said.
Other first-timers, like bank executive David Lee, 23, said that more could be done to address the needs of those who urgently needed flats.
Mr Lee currently stays in a rented room in Tampines with his wife, 27, a housewife, and their one-year-old daughter.
He had tried unsuccessfully to buy a Sengkang BTO unit last year.
'It's not good for the mental development of a child to not stay in her own home,' he said.
Naming vulnerable families as the top priority in his speech, Mr Khaw believes having more rental blocks will ease their housing needs somewhat.
There are currently 44,000 such households living in rental flats and 1,600 more waiting in the queue.
Other home buyers will be tended to 'in due course'
In his rally speech earlier this year, Prime Minister Lee Hsien Loong announced that the Government would be raising the supply of rental flats, which can be leased for as little as $30 a month, to 57,000 by 2015.
'We are speeding up the building programme and using interim facilities which come along, including delaying the demolition of the blocks placed under the Selective En Bloc Redevelopment Scheme (Sers),' Mr Khaw said.
Another site for such flats would come in the form of two blocks of dormitories located at the previous Malayan Railway in Tanjong Pagar which are currently undergoing a clean-up for such use.
The minister also said he was reviewing the rental structure to introduce more rental tiers.
This issue cropped up after he was told of tenants who managed to earn more, but saw their extra income flowing back to the Housing Board as they now had to pay higher rentals.
This is because a first-timer household earning less than $800 would pay about $30 for a one-room unit, whereas those earning less than $1,500 could pay up to $120 per month.
The review is to ensure that 'the incentive to work harder and earn more is not unwittingly diminished', he said.
Mr Khaw also promised to attend to other groups of home buyers such as singles, second-timers, upgraders and downgraders in due course.
'Meanwhile, because all housing segments are inter-linked, our solutions at helping the newlywed first-timers will also help to moderate the other market segments,' he noted.
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[email protected]
Khaw's housing priorities
First home will be kept affordable, more rental flats will be available
Published on Oct 20, 2011
By Daryl Chin & Tessa Wong
NATIONAL Development Minister Khaw Boon Wan has made it clear that his priority for the next two years will be to tend to the housing needs of two key groups: newlyweds and vulnerable families.
Newlyweds will be provided an affordable first home at prices which should not rise faster than their incomes, he has pledged.
As for needy families earning less than $1,500 a month, the Government will make more rental flats available, at subsidised rates which will also come under review.
There was no mistaking the thrust of Mr Khaw's maiden speech in his new portfolio in Parliament yesterday, which he titled Happiness Is An Affordable First Home For All Newlyweds.
'I commit to help all newlywed first-timers earning below $10,000 per month to get their first HDB home as soon as possible,' he declared.
'This will help meet an important social objective of helping them settle down and start their families.'
Already, the Housing Board (HDB) is pushing out 50,000 new flats in the next two years, he said.
'If the demand remains strong, we have the resources and the capacity to build more than 100,000 Housing Board flats during this term of Government,' he added.
Part of this infusion might come from starting Build-to-Order (BTO) projects in new areas like the Bidadari estate located near Upper Serangoon, which can yield about 12,000 units.
He also tapped Tengah town which is located near Chua Chu Kang as another possibility in the longer term.
Once infrastructure such as roads, drainage and the like is completed, Tengah town could yield about 56,000 units.
Besides supply, the minister touched on affordability of public housing.
He acknowledged some home buyers' worries that HDB flat prices will continue to rise amid current market conditions, leading to panic demand.
Having participated in three BTO launches, Mr Khaw said prices of new flats have been 'stabilised', and should remain that way as long as construction costs do not rise dramatically.
He emphasised that as long as their expectations were realistic, newlyweds eyeing new Housing Board flats 'do not need to worry that BTO price will run ahead of their income'.
Mr Khaw's pledges are a relief for buyers like police officer James Tan.
The 26-year-old and his fiancee have a combined income of just under $10,000 and hope to land their dream home soon.
'It does take a load off my mind, that our problems are being addressed,' he said.
Other first-timers, like bank executive David Lee, 23, said that more could be done to address the needs of those who urgently needed flats.
Mr Lee currently stays in a rented room in Tampines with his wife, 27, a housewife, and their one-year-old daughter.
He had tried unsuccessfully to buy a Sengkang BTO unit last year.
'It's not good for the mental development of a child to not stay in her own home,' he said.
Naming vulnerable families as the top priority in his speech, Mr Khaw believes having more rental blocks will ease their housing needs somewhat.
There are currently 44,000 such households living in rental flats and 1,600 more waiting in the queue.
Other home buyers will be tended to 'in due course'
In his rally speech earlier this year, Prime Minister Lee Hsien Loong announced that the Government would be raising the supply of rental flats, which can be leased for as little as $30 a month, to 57,000 by 2015.
'We are speeding up the building programme and using interim facilities which come along, including delaying the demolition of the blocks placed under the Selective En Bloc Redevelopment Scheme (Sers),' Mr Khaw said.
Another site for such flats would come in the form of two blocks of dormitories located at the previous Malayan Railway in Tanjong Pagar which are currently undergoing a clean-up for such use.
The minister also said he was reviewing the rental structure to introduce more rental tiers.
This issue cropped up after he was told of tenants who managed to earn more, but saw their extra income flowing back to the Housing Board as they now had to pay higher rentals.
This is because a first-timer household earning less than $800 would pay about $30 for a one-room unit, whereas those earning less than $1,500 could pay up to $120 per month.
The review is to ensure that 'the incentive to work harder and earn more is not unwittingly diminished', he said.
Mr Khaw also promised to attend to other groups of home buyers such as singles, second-timers, upgraders and downgraders in due course.
'Meanwhile, because all housing segments are inter-linked, our solutions at helping the newlywed first-timers will also help to moderate the other market segments,' he noted.
[email protected]
[email protected]