Desmond Lee
Singapore
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“If the Member would file a Parliamentary Question, I will have it properly checked because it is a legal matter. And lastly, on subsidies, when I said, "broadly reflects", I wanted to be very accurate because we provide price ranges for each project. So, when you see 5-room flats in Central Weave @ AMK, they are 5-room flats on different floors, and therefore, the price before grant is different. The comparable resale prices which is put right next to the BTO prices are again in a range because you have probably a variety of resale transactions around the area. You must also adjust for comparability. Some professional work needs to be done to adjust for tenure, adjust for condition, amenities, and so on, and these are professional matters. I wanted to be accurate to say, "broadly reflects" because there are all these considerations will be taken into account. I hope that addresses the Member's questions.”
“Thank you, Sir. I welcome the Leader of the Opposition's clarification that Workers' Party does not support PSP's proposals on the Affordable Homes Scheme and the Millennial Apartments Scheme. Whichever way it votes on the Motion later, I think that clarity is helpful for the record and to understand the Workers' Party's position on affordability, accessibility and the proposed reset by PSP. On the 2003 ERC report, I do not have the report with me at this point in time. I will have to go back and view that. I would just say this – that as part of Forward Singapore, we have already embarked on a number of conversations with people from across different walks of life and also received lots of representation by Singaporeans and organisations. In fact, there is another one going on tomorrow night where people would want to share their views about public housing. There are many platforms for Singaporeans and well-wishers to contribute their ideas, views, data and so on. On Annex 5, the Member is asking us to give a sense of why the demand has shot up. In the interest of not prolonging the debate, I have covered some of that in the opening speech as to the kind of dynamics and the interplay of factors which led to the spike in demand. But I think there are, of course, other factors as well. Firstly, there is the fact that first-timers have a much larger share of the flat supply than second-timers. For second-timers, they are applying for a variety of reasons – some because they need housing, some because they see the wide gap between resale prices and BTO prices. These are all views that one can make as to what interplay of reasons led to this market psychology. On the POFMA question, let me go back and have it properly addressed.”
“Mr Speaker, just three matters. First, we do not want to prolong the debate. The points made by Mr Leong on the NIRC are clearly wrong, but we will have the opportunity to debate this in the coming Budget debate. I just want to make sure that we put that on record. Secondly, Mr Speaker, I want to make a clarification. Earlier in response to the learned Member Louis Chua, I mentioned that the Shorter Waiting Times flats of 2,000 to 3,000 will be by 2024. That is wrong. In my opening speech, I said 2025. And I want to apologise and put that on record. Thirdly, Mr Speaker, I thought that we should settle this before we start voting on both Motions and the Workers' Party's amendment of our Motion. In deciding how to vote on each Motion, including PSP's Motion, I invite the Members of the Workers' Party or the Leader of the Opposition to spell out clearly your position or the Workers' Party's position on PSP's Motion as well as on the Affordable Homes Scheme and the Millennial Apartments Scheme.”
“But we accept today that there is demand, we have to build, we have to prioritise better, we have to reduce the 40% of BTO applicants who do not select flats and there are things that we have to do to fix today and to make things sustainable for tomorrow. On your question about Shorter Waiting Time flats, we aim to reach levels that we had prior to COVID-19 of between 2,000 and 3,000 a year, from 2024 onwards, by 2025. [Please refer to the clarification later on in the same debate, Official Report, 7 February 2023, Vol 95, Issue No 82.] But as I said in my opening speech and just now, we want to re-calibrate so that a larger proportion of our overall supply of new flats has waiting times of two years plus, or below three years. That provides more choice, together with BTO flats that we build more productively. And I think 2.5 years or three years before COVID-19, the waiting times were certainly less than the waiting times today. If you look at the new projects that we build for Singaporeans, the quality of the buildings, the height of the flats, the amenities that we build, the services that we provide, the design of the buildings, I think you would accept that they are quite a different class of public housing than what you cited in the 1980s and 1990s. A lot of that accounts for why it does take time despite productivity measures. The sites we are building in are complicated sites and some of them are more challenging to build. Some private developers will probably not touch those sites. But we go in for it, we know we want this site for public housing and we go for it. So, we will re-calibrate our supply but overall, there will be a flat mix for Singaporeans.”
“I thank the Member for his clarification. On his first point, I hope the Member understands where we are coming from and that we meant well when I said what I said earlier. We acknowledged that there is a high demand today. It is clear from the high BTO application rates across the board, but especially in mature estates and choice locations, that there is high demand. There is broad-based demand but there is also market psychology at work and COVID-19 had a lot to do with that. We and my colleagues and the construction industry are working very hard to make the land available, to take over land to develop public housing, to do the land preparation, to do the work expeditiously but safely and productively. And it was quite clear from the data that before COVID-19 struck, we were building higher than what Workers' Party had proposed and the application rates were low and the resale prices were soft. To say both to PSP and the Workers' Party that, "Oh, before COVID-19, you all should have anticipated, you should have done this and done that", I think reeks of applying perfect hindsight. I do not think it is fair to my colleagues. I just hope you understand why. And then knowing full well what you had proposed in 2019, to come to this House and then before in COS and Parliamentary Questions repeatedly to make the allegations against my colleagues in the different departments that we did not plan ahead, I decided today I think better set the record straight because the Workers' Party did not disclose that when you did this report, the Workers' Party had asked for a reduction in BTO supply to almost half of what we put up, based on your assumptions.”
“Sir, I replied to Mr Gerald Giam in a Parliamentary Question recently, in a supplementary question that the Chief Valuer is an independent office, and there are provisions in the Constitution to ensure that. But he or she will apply the valuation principles that are accepted and value land on the basis of its use. Public housing land is zoned for public housing and I think the Chief Valuer would be in command of the necessary information to understand what public housing is about. We can share information with him or her, and it is available publicly. But to say that we should – I do not know whether the Member is asking us to – persuade the Chief Valuer to accept his method of valuation as something that is acceptable, I think the profession as a whole would not accept the Member's strategy of valuation. But it is always open for Workers' Party to make representations to the relevant departments to advance reasons why the Workers' Party's method of valuation is professionally acceptable. There are institutions and associations that are professional valuers and the Chief Valuer himself or herself is a professional.”
“In that regard, Mr Speaker, I do not know whether it is right to say it now or later, I propose that we reject the PSP Motion, we reject the Motion for the reasons I have said. Stand with us, support our Motion, support the plans for today and tomorrow, and let us work together on our public housing journey. As for the Workers' Party's proposal, I think the fact that we have a commitment to the twin goals implies this spirit of always wanting to improve, that there are issues that we face today and tomorrow's challenges are something we have to keep an eye on. I think that is evident from the opening speech, that is evident from my colleagues' speeches, that is evident from the speeches of speakers in the House. For the Leader of the Opposition to characterise our Motion as us sitting on our laurels and, therefore, necessitating this late amendment, I think it is misplaced. And, therefore, I propose that we reject the PSP Motion, vote down the Workers' Party's attempts at politicking and stand with us, stand with public housing, stand with giving every Singaporean a stake in housing but address with all humility the pain points and challenges that they face today as a result of COVID-19 and tomorrow as a result of the changes in society that Singapore is going through. Mr Speaker, I beg to move. [Applause.]”
“He said: “An enlightened public leader will carefully weigh the pros and cons of each policy option, never downplay the trade-offs, never sacrifice the long-term benefits for short-term gratification.” He also cautioned all of us in this House that if we were to give in to the “appealing rhetoric that understates the trade-offs and real costs", “eventually, it is still the people and the man in the street that suffer the most”. Sir, the PSP’s Motion has noble intentions, but the claim by the PSP that our public housing system is fundamentally broken is something that we cannot accept. It is not a perfect system, there are things we need to improve today and tomorrow, but to say it is fundamentally through and through unaffordable and inaccessible and needs a radical change of the kind that he is proposing together with his party, is something we cannot accept. And if I may say, I believe the Workers' Party also agrees with the Affordable Homes Scheme as part of supporting the Motion, but you can clarify. And as we said, we think the proposals put forward by the PSP do not address today's problems and certainly do not address tomorrow's problems. Instead, today we have a system that seeks to ensure affordability and accessibility in public housing for Singaporeans, while allowing them to have a stake in Singapore, to enjoy the fruits of economic progress and income growth through the asset of their home so that they can build up their nest egg. Disruptions from the pandemic have caused imbalances, which we are working hard to address. As I said earlier, our system is not perfect, but we keep improving it and striving to make it better. And we have a strategy to ensure public housing remains affordable and accessible into the future.”
“And that is our commitment to those twin goals. Public housing has been and remains accessible and affordable broadly to Singaporeans. And in the next lap, we will face new challenges in terms of ageing infrastructure, more binding land constraints, climate change and we will need our resources, our reserves and our wherewithal to go through them. As I set out in my opening speech, we disagree with the PSP’s claims in its Motion and decided to table our own Motion. One reason is because we believe that we must maintain housing accessibility and affordability while keeping sustainability in mind, and upholding a culture of politics, where we discuss hard truths and trade-offs in a transparent manner, robust manner, even if they may not all be popular. Throughout this debate, Members from both sides of the House also agree that fiscal sustainability is imperative. In fact, Mr Leong and the PSP’s position seems also to have shifted, from pricing flats based on median incomes in the 2020 manifesto; to December 2022 where they proposed eliminating land cost totally from the cost of developing public housing; to today, a deferred payment scheme where owners pay the full cost of land with accrued interest only when they want to sell the flat, as we learnt yesterday. I think Mr Leong and many Members may disagree whether it is a mischaracterisation or whether it is military strategy, I think it is quite clear to most of us, including objective observers, that there has been a change. I welcome the convergence of both sides of the House on this principle of sustainability, which lies at the heart of our Motion. I was quite taken by what Mr Cheng Hsing Yao said, and I would like to quote briefly from him. He spoke sensibly and passionately about policy trade-offs yesterday.”
“For choice projects in the mature estates, we must study carefully how to continue to keep BTO prices there affordable, and Members have given many useful suggestions in this regard. For the resale market, we can also continue to ensure that it grows as an asset for a good part of its duration, for the good part of a buyer’s life and yet remain affordable. Today, resale prices are as they are, and we have put in cooling measures to address them. But in the long term, resale prices will be kept affordable and yet remain largely as an appreciating asset for the nest egg of Singaporeans through a combination of grants and policy measures such as PLH and others, as well as measures to ensure that the property market does not run ahead of economic fundamentals. More importantly, we do this by growing the economy and growing the incomes of Singaporeans at every level. So, their incomes grow, and their ability to spend, their ability to invest, their ability to look after their families grow. Mr Speaker, this debate has been very valuable in allowing us to clarify and put forward clear facts to address the concerns of Singaporeans. And by no means are we saying through this Motion that all is well and good and that nothing needs fixing, and it is a perfect system. As I said in the opening speech and as reported in the papers, our system is far from perfect but it has achieved through the generations, the outcomes that we have laid on the table today. And there are things that we have to tackle today. There are the imbalances of COVID-19 but there are also work-in-progress pieces as part of social policy to ensure affordability and accessibility as our households change, our society matures, our economy evolves and expectations change.”
“These include the relocation of Paya Lebar Airbase which frees up land for us to build some 150,000 new homes equivalent to the number of homes in Punggol and Sengkang combined. The Greater Southern Waterfront has not just infrastructure but also provide for affordable housing in that area. It will also be transformed into a new major gateway and location for urban living along our southern coast, including 6,000 new public housing units to be built on the Keppel Club site. And these are some of the exciting new bounds in our ambition as a distinctive city and enduring home. Second, we will continually redevelop older parts of our city and in due course, also rejuvenate our older estates through the Voluntary Early Redevelopment Scheme, or VERS. This provides us the opportunity to redevelop towns in a sustainable manner and ensure equitable housing through the generations. But will we, the people of Singapore today and tomorrow continue to afford public housing? Yes. First, we build and price BTOs to ensure affordability for Singaporeans of various income levels. Access to BTOs is based on income eligibility and other criteria. This allows us to ensure BTO flats can continue to remain affordable over the long term. Second, for mature estates, we will price flats affordably but as I described at length earlier, we cannot price them like non-mature estates. We have implemented the Prime Location Public Housing (PLH) model to ensure that flats in the central locations remain affordable at the point of sale and subsequent resale. But they come with additional conditions to ensure equity and fairness, so that we ensure a good mix of Singaporeans from more diverse walks of life, while ensuring fairness between PLH owners and other flat owners.”
“So, I was speaking about the new housing models that cater to seniors – and we are not done yet. We are not done yet. We continue to make an extra effort to help the lower income own their own homes, so that their next generation will have a leg-up in life, which another social element behind public housing. To ensure that we help lower-income groups fulfil their home ownership aspirations, our housing grants are tiered such that they receive more in grants. We have also introduced the ComLink Rental Scheme, enhanced the Fresh Start Housing Scheme and set up the Home Ownership Support Team to closely support rental families towards progress, stability and the path to home ownership. And I was cheered when I heard Ms Janet Ang speak earlier about actual families that she works with. I have talked about the past, a few years before COVID-19, to show how we have kept building and keeping pace with housing demand and needs, how we try to build a model to anticipate, how during the COVID-19 black swan event, things turned out the way they are, what we are doing, the commitment that we have made to address these issues openly, assiduously, transparently, and my colleagues at MND and HDB and many other agencies are working really hard to tackle today's challenges. But we also must look at affordability and accessibility and the public housing of Singapore into the future as well. So, the important question is, will we have enough land and resources to build new and better homes for younger Singaporeans, and the generation after them and the generation after that. We do. And we will be able to find the space to build homes for Singaporeans for the long term. There are a number of ways we do this. First, we will be making some big moves to create space.”
“My colleague Minister of States Assoc Prof Faishal Ibrahim has already explained how we proactively planned ahead and made provisions to help seniors monetise their flats to supplement their retirement. Because one important theme that came up in this debate was whether housing gives you a peace of mind, build up a nest egg and affords retirement adequacy. And we have also come up with new and better housing schemes such as the Community Care Apartments. 9.33 pm”
“And so, we think this is one-dimensional and my colleague Senior Minister of State Sim Ann had already addressed this and keeping in mind time and that my learned colleague Mr Leong has to speak after this. So, instead, we want to offer a variety of housing options of different sizes in different locations at different price points to cater to varying housing needs from our flat buyers. Sir, in over 50 years, we have provided housing for a nation in what Ms Janet Ang rightly pointed out – a city-state, very limited land, no resources but for the industry of people and their imagination, their will power, their drive, their willingness to sacrifice and see the big picture. We have done this against the odds. Not us, but our forefathers have set the right example. They demonstrated the ethos of hard work, prudence, selflessness and sacrifice. They not only resettled in and housed a generation – and it was by no means an easy feat – but also built up the resources that we enjoy today. We must embrace the same values and not pursue housing policies that benefit ourselves at the expense of future generations. But we should also embody our pioneers' spirit of always seeking to do better and to overcome our constraints with creativity and far-sighted planning. Therefore, we started a series of Housing Conversations with Singaporeans under Forward Singapore since last year to hear their aspirations and ideas, their hopes and fears. We will study their ideas, including the suggestions we hear from Members from both sides of this House during these two days of debate, so that we fulfil that commitment to the twin goals of continually ensuring affordability, accessibility and continuing to improve our housing system.”
“0, if you look at the Parliamentary Question data that we have given to you for the HPI that Singaporeans at different income levels have, you will see that it is at five generally for non-mature estates and for lower-income families, it is around three or less. The charts show that. Most importantly, the vast majority use CPF and pay little to no cash. Those are indicators of affordability. Mr Lim Biow Chuan also very eloquently explained that the fact that people are prepared to spend and invest in a property as opposed to renting because they cannot afford – all these are indicators that give you a sense that BTOs are broadly affordable. So, if the Workers' Party says they will want to make significant changes to the Motion because they think that a lot more work needs to be done for affordability, then I think they have not explained how in bringing the HPI from the current level to three; and in fact, for some, it is already below three and you are going to raise it to meet your HPI of three artificially, by increasing prices for the lower income to meet your dogmatic three, I think an important question is how will you fund it? Will you fund it by, like how Assoc Prof Jamus Lim has said, valuing housing so much like a social good, like a park, like a hospital, like a school, or like roads – $1 a metre he said. So, while the proposal sounds attractive, it ignores the trade-off that far lower prices would attract even more flat applicants, whether they genuinely need housing or not. It also does not address the windfall gains enjoyed by flat buyers, some of whom may be from the higher income levels and, quite apart from first-time BTO sale, how do you ensure the affordability of the resale market over time. That dogmatic proposal achieves none of that.”
“Yes, there are speculators, but I think most Singaporeans look for a home but hope that also helps with their retirement adequacy, gives them a sense that their asset will appreciate. Yes, there will be ups and downs based on the market cycle. But I think it is not incongruent to expect both, especially if this is the single largest expense or investment of your life. So, therefore, we clearly charge below construction costs and land costs whereas the PSP's proposal is, well, you live here forever. It is an expense, it is a user fee. But the moment you resell, based on the land costs from I do not know how many years ago when you first bought from us, we will accrue the interest and if you bequeath to your children, they will pay the land costs and interests over two generations. I think, clearly, without even the interest accruing, the fact that you expect the buyer of a flat to pay for construction and land costs at a point when they finally need to sell and move, is just plainly more expensive and more unaffordable for Singaporeans than the existing model. Many Members have already explained why they think Mr Leong Mun Wai's Affordable Homes Scheme will not work and will not solve the issues we are facing today or tomorrow. Mr Leon Perera and Mr Gerald Giam reiterated the Workers' Party's proposal to peg non-mature estate home prices at three times the median annual household income. I will not go into detail on this because I think there was very robust discussion between Workers' Party's Members of Parliament and my colleague Senior Minister of State Sim Ann on this issue of affordability. But whether it is a HPI of 5.0 or 3.”
“This is more than what private developers typically disclose. We understand private developers, as I said in my opening speech, do things differently which is probably more intuitively to most of you. They look at the cost of development, cost of marketing, and recover that cost and price for profit and return. But HDB is pursuing a social objective. Deficits are a function of achieving those goals of affordability and accessibility. Let me turn to why – and I am not sure whether I need to go into this but many Members, including my colleagues have explained. As a result of what I have just described, the PSP's proposal is going to be far more expensive to those whom in the ordinary nature of things, buy because they want to have a home and then at some point in time, they need to sell. Most people do not go into the housing market either thinking this is a home for the rest of my life or going in as a pure speculator. I think it is perfectly human to say, when I buy a home, it is a home. I am going to spend money, I am going to invest in it. It may make money, it may lose money, it may break even. I hope to live there. It is a lot of effort to move in, renovate and move in and there is social capital to invest in your neighbours and all that, with children in the schools nearby. But it is not wrong for some of these people to say at some point in time, my life circumstances have changed and I need to sell – not sell to make money but sell because it is part of life's circumstances. So, I think if PSP ascribes to everyone who is a reseller that you must then punish them with a certain way of pricing on resale, then I do not think that is being fair to Singaporeans. That is not being fair to our own human nature when we are buying homes.”
“Are we giving people in certain projects more discounts or subsidies than others? Whether there are more discounts and subsidies, again, depend on those factors, but the broad market discount across all projects, barring PLH, in the same launch is broadly in the same parameter to ensure there is equity. But later on, when they sell, it depends on the resale market, it depends on the condition of the flat. Property valuers will tell you that, property agents will tell you that, your residents who buy and sell instinctively know that. Okay, maybe we can clarify over coffee later if you need more information. [Laughter.] So, that is the extent of the difference. For PLH, we give additional market discount in order to make sure that the sticker price before grants is still within reach of Singaporeans. We have to give extra subsidy. That is why for your mature estate BTO prices, they have to be higher generally than in non-mature estates because they account for the difference in location, the valuations, the amenities, the distance to the city, so, a number of factors and also because we try to apply an even-handed extent of market subsidy. You can see that information on the brochures. I have said that. This is the third time I have said that. In terms of HDB as a transparent developer, I have said that it is more transparent on pricing than others. Construction costs, if you care to know, most private developers will not tell you that. It is all a part and parcel of their financial statements. But construction costs are published on HDB's website and GeBIZ, and the cost of building flats and the revenue from sale of flats can be found in HDB's financial statements. All of these are audited. All of these are subject to the Auditor-General's overall supervision.”
“Because apart from significant market discounts, you would be familiar with the grants that we give – Proximity Housing Grant, Enhanced CPF Housing Grant, so on and so forth. That has got various parameters, so it is not so straightforward. It depends on means testing, it depends on flat type, it depends on whether you tap on the scheme for Proximity Housing Grant to open up that grant to yourself. That gives you a sense of the picture. The proceeds from the sale of flats – and all this is not new; I have said this a number of times – the proceeds that HDB collects is less than land and construction costs. And they are every year. And that is why Mr Leong Mun Wai's proposal is far more expensive to the ordinary citizen than it is under our scheme and Members who have spoken understand what this is so. The land and construction costs every year is more for our HDB projects than the proceeds we collect because of the discounts we give in terms of market subsidy as well as the grants that are means tested or based on flat type, based on proximity, based on Fresh Start, based on this and that, and the proceeds we collect are significantly less than how much we spend. That is why I explained in the opening speech, if you were listening carefully, that the development cost, which is how much we spend and how much we collect are on two parallel tracks and they converge when you see that there is a gap, a deficit, between how much you spend and how much you collect. That is the $3.85 billion deficit in HDB's Home Ownership Programme in the last financial year – and two-point something billion dollars before that and one-point something billion dollars before that. That is for all the projects. The Leader of the Opposition makes a good point about whether there is equity.”
“You asked for more information but the information is already there and explained at length to the Member. Look at the information when we put out at every launch. For every project, we have the range of BTO prices, which are subsidised, and right next to it is a column of the comparable resale prices. We have to make some adjustments because depending on the level, depending on the amenities, depending on the tenure, we have to make adjustments and these are adjustments made using valuation principles. So, once you have done that, you can see that this difference in the brochures, in the information that we put out, for every launch, for many, many years already, broadly reflects the extent of the market discount, which is real and which buyers can realise after MOP when they sell because the BTO price is significantly below market. But I have also taken pains to explain to the Member that we have to make adjustments. We have to recognise that for each flat type, there are different floors and so we put the range. Likewise, the comparables also have different flat heights. So, we put the range to be transparent. That difference broadly reflects the extent of the market subsidy for the projects. And you can see today that it has become very large compared to, say, 10 years ago. It is very clear. That – and I did not mention in my opening speech – in turn feeds the psychology when you see the resale prices going up and BTO prices remaining almost the same. There is the sense that BTO is a better deal now, better go for it, especially in good locations. But as I also explained to the Member, if you want to know the extent of the subsidies for each project, you also have to take into account the other half of the picture.”
“They can finance their HDB loan completely with CPF, with little to no cash needed. The MSR figures are even lower for those at lower-income percentiles with the higher grants they receive. To give an example, using the average price of $342,000 for a 4-room BTO flat in a non-mature estate in 2022, a family with a household income of $5,000 can receive $45,000 in housing grants and affordably purchase the BTO flat at an MSR of 21%. In other words, they can service their mortgages entirely from their monthly CPF contributions, with no cash outlay. This is an appropriate time in which I deal with the Leader of the Opposition's questions repeatedly about transparency and the extent of the subsidies given to buyers in the mature estates and the non-mature estates. I have explained and my colleague Ms Indranee Rajah has tried to explain. In fact, in this speech, just moments earlier, and in my opening speech, I tried to explain and break down how we price HDB flats. Also, in reply to Mr Gerald Giam in a Parliamentary Question, I thought I tried to explain very clearly and answer some of his questions. When we build HDB flats, we look at the market comparables for HDB because it is public housing. Then, we determine the affordability indicators for different income levels, the mortgage servicing ratios, and we then know that we need to price it at a certain level so that buyers can be able to afford at the indicators that are in the report card, as what we say each time when we announce on affordability. And these prices are significantly lower than what the resale market can bear. I will just wind back. HDB is already the most transparent on its pricing and costs than any other property developer. You can look at the brochures.”
“Mr Leong proposed the Affordable Homes Scheme, which as my colleague, Senior Minister of State Sim Ann and many Members of this House have explained, is not a better alternative to addressing the challenges of affordability and accessibility, compared to what we have today and compared to what we intend to do and are studying to do. Minister Indranee Rajah has also explained that if the occupiers of flats under this scheme do not sell the flats, then by leaving land costs out of the equation of this proposal, it is effectively a draw on the reserves. We have also heard many suggestions on improving public housing affordability. We have shared that we price new BTO flats based on affordability, not at the median level as the Workers' Party has repeatedly called for, or what was originally in the PSP's manifesto of 2020 – though, having heard Mr Leong, I am not sure if the manifesto still stands. We have shared that we price new BTO flats based on affordability for different income levels. Based on the market value of the comparable flats, we then apply a significant discount to ensure they remain affordable to first-time buyers across different income levels, not just at the median. On top of that, we provide additional grants for first-timer families, with more grants to those who need them the most. With this approach, today, HPI, or Home Price to Income ratio, is less than three after grants for those at the 25th percentile – or households at the bottom 25% in terms of total household income. In 2022, almost nine in 10 first-time BTO flat buyers have mortgage servicing ratios (MSRs) of less than 25%. What it means is not just a statistical fact. Nine in 10 of these families use less than a quarter of their total household income to pay for their mortgage instalments.”
“Secondly, you cannot be certain how market psychology would work and there is a confluence of factors that come together to determine housing market sentiments. This shows just how difficult it is to accurately predict residential property demand, or for that matter, the direction and size of movements in the property market. We therefore need to be careful in calibrating flat supply to meet demand. Most importantly, it is important for us not to try to ascribe a wrong set of reading of the facts because before COVID-19 struck, the data, in terms of application rates across the board, as well as resale prices, indicated that the housing market was relatively stable – until around the time of COVID-19 when the situation changed. And in fact, think about the crises. During the Asian Financial Crisis, demand vanished and prices plunged. COVID-19 is a crisis of a different sort, but it is still a crisis. The exact opposite happened: demand went up. Today, with perfect hindsight, we still make conjectures as to what we think caused this change in movement. I described, or attempted to describe, just some of those broad strokes in my opening speech. So, I think it is very important for us to recognise what we ourselves had said in 2019 as we sit here and try to pontificate about what the Government had or had not done. Several Members, Mr Leong Mun Wai and Mr Jamus Lim for instance, have also put forward proposals that effectively will result in a draw on past reserves. Most of the points have been dealt with by my colleague, Minister Indranee Rajah, but in fact, Mr Jamus Lim sought to justify that paying lower land price is a way of "being present" for the current generation.”
“Even the Workers' Party is cognisant of the implications of an oversupply, as seen in their 2019 Working Paper on HDB resale prices. But today, with perfect hindsight, they are asking about actions of the years before. This indicates that vulnerability. The paper mentioned, "Assuming an average household size of 3.3, this would mean that around 9,000 or so new dwelling units are required annually. Completions within the same time period have far exceeded the resident population growth. Private vacancies have only started to inch down, but there are still around 12,000 private units completing up to 2022." And then it goes on to say, "Will the HDB have a vacancy rate problem, compounded by a still steady stream of 16,000 to 17,000 BTO units in the last few years, which will continue to increase supply up to 2022?" This was a report commissioned within the Workers' Party, quoting experts from the property sector. In 2019, they cautioned HDB from persisting in building 16,000 to 17,000 BTO units, instead saying: would vacancies cause problems? Better just go down to around 9,000 BTO units or so because they made a lot of assumptions. They marshalled a lot of data and experience, and this was the recommendation. So, in 2019, the Workers' Party was recommending that HDB should only build 9,000 dwelling units or so. To put this into context, HDB launched around 16,000 flats in 2018, the year before the report; 15,000 flats in 2019; and 17,000 flats in 2020. The rest is recent history. Had we tapered down our supply to the Workers' Party's levels in 2019, or listened to you and your experts, I think our BTO shortage would be even greater today. So, I think we all accept that the best of models cannot, firstly, fully account for black swan events.”
“Then COVID-19 hit, the dynamics shifted rapidly and we are in the current situation where demand for housing shot up. The housing market is highly sentiment-driven and demand can suddenly appear, or disappear. Let me give a real example. At the height of the property boom in the mid-1990s, there were as many as 150,000 buyers in the queue for public housing and the wait for a flat could be as long as seven years. However, when the Asian Financial Crisis struck in 1997, the queue vanished, virtually overnight, some say. HDB ended up with 31,000 unsold flats, which took more than five years to clear. Because of the unintended oversupply, home buyers could walk in to buy ready flats in the early 2000s. However, home owners paid a heavy price, with flat prices, or resale flat values, staying depressed. Some who bought flats just before the crisis ended up with negative equity and even lost their homes and hard-earned savings. The many unsold flats represented a waste of taxpayers' money. The holding cost incurred from the vacant housing stock is not inconsequential. It was money that could have been spent on other uses – healthcare, education and other areas, especially after a financial crisis. People who were sitting in this House at the time were asking lots of questions. The Auditor-General was asking lots of questions. I can tell you that if you were to look at the records, the mood was quite the opposite of what you are hearing today. Several Members of Parliament like Miss Cheryl Chan and Mr Sitoh Yih Pin also pointed out that the danger of oversupply is real. Should there be a persistent or significant oversupply of housing, this imposes a downward pressure on the housing market, which in turn hurts the asset values of all flat owners.”
“So, we are already building aggressively and at large scale. We should also remember that HDB is not the only one ramping up, especially after the pandemic. Since the pandemic started to subside, the overall pace of building and construction on our island has gone up very significantly. Individuals, businesses, private developers, organisations, Government agencies are all pushing ahead with their important projects while doing catch-up on COVID-19-related delays suffered by existing projects. Fiscal resources, foreign manpower and construction capacity are not without their limits. Several Members, including Ms Hazel Poa, Mr Louis Chua and the Leader of the Opposition, have suggested that the Government has under-estimated demand and under-built the supply of flats. Ms Hazel Poa suggested that the Government knows the number of marriages and the immigration numbers. The Leader of Opposition has indicated a wider range of parameters. We do in fact have models that take into account many considerations – marriages, births, deaths, income levels, economic conditions and cycles, demand for different housing types and so on – in trying to project the real demand for flats and for property in general. However, as we all know, it is not a perfect science and it certainly cannot account for sudden shocks and what sudden shocks can cause in terms of human psychology and market behaviour. In fact, for many years before COVID-19 hit, application rates for BTO flats were low and in fact, the resale market was soft. I had mentioned all of these in my opening speech. I trust Members, including Members of the Opposition, had listened to that. In fact, my colleague, Senior Minister of State Sim Ann, had emphasised those points.”
“We must not enhance housing accessibility and affordability of this generation, by robbing our future generations, whether of land or fiscal resources, or the reserves which are intended to put them in better state, through thick or thin. This is what a responsible Government should do. Above all, we must continue to build a nation of home owners, for this generation and the next, to continue the legacy our forefathers have started. We firmly believe in home ownership, as it provides us the stability to build our families and raise our children, give us a sense of rootedness in Singapore and allow us to have a stake in our country's progress. Home ownership has worked for us and we need to continue with the good work to make it work for the next generation. That is why we sell HDB flats on 99-year leasehold, which strikes a balance between providing a home-for-life, asset appreciation and enabling us to rejuvenate our city and build new homes for the next generation too. Ms Hazel Poa, the Leader of the Opposition and Mr Louis Chua asked why we did not build even more and even faster. At the same time, several Members have sounded a word of caution, taking a longer-term view and looking at the lessons of the past. I have just said that we are already doing that. Today, we are already overseeing almost 100 BTO projects island-wide, at different stages of construction. There are almost 80,000 HDB flats under construction, as we speak. We will press on. This high tempo will continue and by about 2025, we expect to have about 150 BTO projects going on at the same time. By contract value, HDB is not just the largest housing developer, but also exceeds all the other private residential housing contracts combined by more than 50%.”
“In the brochure itself, members of the public as well as Members of this House can see the range of BTO prices before grants as well as the market comparables for HDB resale prices nearby, which after adjustments, will give you a broad sense of the gap between what is available on the resale market and what is available as subsidised housing in a choice mature estate. But what I have also emphasised is that this Government needs to provide affordable and accessible public housing, not just for this generation but also for future generations of Singaporean. This is long-term sustainability. We are a small city-state, 720 square kilometres with many competing needs and our scarce land needs to be carefully stewarded. We will create space to meet the needs of today's Singaporeans and tomorrow's generation, but this will involve rejuvenating and recycling land, and building more intensively. Resources are limited. Singapore has no natural resources to rely on. We have to create and build up the fiscal resources needed to support the home ownership aspirations of Singaporeans. So, how do we allocate limited resources for public housing among potentially unlimited housing needs, while reflecting our values as a nation? We will prioritise first-timer families who need housing to build their families. We will help lower-income households more because we believe in housing as a social leveller. Our housing policies also reflect our values of prudence and sustainability. We must not subsidise housing at the expense of other equally important needs for Singapore.”
“We acknowledge the concerns of first-timer couples trying to set up their very first home and have been studying ways to better help them get their first homes faster. We understand the concerns that people have raised about higher BTO prices in mature estates. We have sought to address some of these concerns through the Prime Location Public Housing (PLH) Model in the more central and very attractive locations in Singapore. I thank Mr Xie Yao Quan, Ms Janet Ang and Ms Denise Phua for their suggestions to expand the PLH model to other locations. We will continue to review our housing models to ensure affordability and accessibility of flats in other mature estates and choice locations, while avoiding an excessive windfall gain to those who successfully book a flat in such areas. In fact, the Leader of Opposition spoke about Central Weave @ AMK. The price he cited was that of the most expensive 5-room flat on the top floor in a location in the heart of Ang Mo Kio Central, next to a hawker centre, next to a wet market, next to two shopping malls, next to the MRT station, next to the bus interchange, next to parks and other amenities. It was a conscious decision to build public housing, as opposed to private housing. Recently, there were GLS sites and launches of private housing in Ang Mo Kio, not in Ang Mo Kio Central. The prices for private housing, which I think you can compare and are clear for all to see, is that there is a clear distinction in prices between the HDB flats in this project in Ang Mo Kio Central and private housing launched by the private sector.”
“Mr Speaker, in my opening speech, I explained clearly that the supply tightness and the spike in resale prices we face today is a recent phenomenon triggered by COVID-19 disruptions. We all went through this together. We are taking active, concrete steps to resolve the imbalance and address the concerns that Singaporeans have raised. We are decisively ramping up the housing supply and will launch up to a total of 100,000 new flats between 2021 and 2025. Members may recall that we announced this in 2021, in the midst of fighting COVID-19. We will also launch more Shorter Waiting Time flats, of around 2,000 to 3,000 flats per year by 2025, and we will recalibrate our building programme over time so that they make up a larger proportion of new flat supply, with flat supply comprising BTO flats, Shorter Waiting Time flats as part of BTO flat supply, Sale of Balance Flats and Open Booking of Flats, on top of the resale market options. Mr Xie Yao Quan, Ms Denise Phua, Mr Louis Chua and Mr Leon Perera had called for building ahead of demand and building Shorter Waiting Time flats. We have priced BTO flats to ensure affordability and kept BTO prices stable in the last two years. To prevent the resale market from running ahead of economic fundamentals, we implemented two rounds of cooling measures and are seeing some moderation in the rate of increase in resale prices. We are still closely monitoring the housing market and we hope that Members can be patient and watch as it develops. I have also committed to Singaporeans that we will not stand by but will continue to enhance the accessibility and affordability of public housing.”
“Thank you, Mr Speaker. First, I would like to thank Members on both sides of this House who have shared your views on public housing. It is an important topic for this House. It is an important topic for Singapore and this discussion is taking place at the time that we are in, after the COVID-19 pandemic. Sir, in many other cities, housing is largely a matter of personal responsibility. Residents look for their own housing on the open market, do their sums, borrow if they have to and find their way – whether to buy, rent or some other arrangement. Governments intervene largely by enabling private developers to build and sell homes to people. They may provide public housing but this is usually as a social safety net for the lower income. In Singapore, we have taken a very unique approach, one that has been developed over the decades since Independence and continually improved to achieve two very important fundamental objectives. First, public housing is social policy. We are building homes to give Singaporeans a roof over their heads, but we are also building diverse communities for Singaporeans to live, bond and experience life together. In doing so, we build a nation as one people. Second, we want to give Singaporeans a stake in the nation by having a home they call their own and sharing in the progress by unlocking the value of their homes and growing their nest egg. Today, 90% of Singaporean households own their HDB homes. To achieve this, we harness a combination of national policy and Government resources on the one side and elements of the open market on the other side, to help unlock the value of people’s homes. But in so doing, we must be very clear-eyed about long-term sustainability, as many Members who spoke during the debate have underscored.”
“Singaporeans enjoy a significant housing subsidy when they buy a new flat from HDB, or a resale flat in the open market with a CPF Housing Grant. To ensure a fair allocation of our limited housing subsidies, those who buy a second subsidised flat from HDB receive a smaller subsidy than first-timer buyers, by paying a resale levy on or before collecting the keys to their second subsidised flat. HDB does not track the collection of resale levy by whether the first subsidised flat was sold before 3 March 2006, or on and after that. The breakdown of the range of resale levy collected from second-timers (STs) buying a new flat between FY2010 and FY2021, based on the flat type of their first subsidised flat, is in Table 1 below. ST flat buyers can use the proceeds from the sale of their first subsidised flat to pay the resale levy, which is payable in cash. Those with extenuating circumstances who require assistance with their resale levy, such as households that are facing financial difficulties, can approach HDB and we will see how best to help them. For example, on a case-by-case basis, HDB may allow the incorporating of the resale levy into the purchase price of the second subsidised flat so that the resale levy need not be paid upfront in cash. HDB does not track the resale levy forgone through a waiver or reduction. STs may also consider buying a resale flat, for which they are not required to pay a resale levy. Eligible applicants may also apply for a Proximity Housing Grant of $20,000, if the resale flat they are buying is within four kilometres of their parents' home.”
“Singaporeans enjoy a significant housing subsidy when they buy a new flat from HDB, or a resale flat in the open market with a CPF Housing Grant. To ensure a fair allocation of our limited housing subsidies, those who buy a second subsidised flat from HDB receive a smaller subsidy than first-timer buyers, by paying a resale levy on or before collecting the keys to their second subsidised flat. HDB does not track the collection of resale levy by whether the first subsidised flat was sold before 3 March 2006, or on and after that. The breakdown of the range of resale levy collected from second-timers (STs) buying a new flat between FY2010 and FY2021, based on the flat type of their first subsidised flat, is in Table 1 below. ST flat buyers can use the proceeds from the sale of their first subsidised flat to pay the resale levy, which is payable in cash. Those with extenuating circumstances who require assistance with their resale levy, such as households that are facing financial difficulties, can approach HDB and we will see how best to help them. For example, on a case-by-case basis, HDB may allow the incorporating of the resale levy into the purchase price of the second subsidised flat so that the resale levy need not be paid upfront in cash. HDB does not track the resale levy forgone through a waiver or reduction. STs may also consider buying a resale flat, for which they are not required to pay a resale levy. Eligible applicants may also apply for a Proximity Housing Grant of $20,000, if the resale flat they are buying is within four kilometres of their parents' home.”
“In the past 10 years, the proportion of tenants who rented HDB flats from existing flat owners ranged from 5% to 8% for Singaporeans, 13% to 16% for permanent residents, and 76% to 82% for foreigners. To prevent the formation of foreigner enclaves, HDB implemented a non-citizen quota in January 2014 to cap the number of flats that can be wholly rented out by flat owners to non-Malaysian non-citizens, at 8% in each neighbourhood and 11% in each block. Most of the tenants renting from HDB flat owners fall within the 30 to 39 age group.”
“There are currently no plans to review occupancy limits for non-purpose-built accommodation that are not foreign worker dormitories. Occupancy limits are already differentiated based on the size of the accommodation. The occupancy limit for 1- and 2-room HDB flats is four unrelated persons, while the occupancy limit for 3-room and larger HDB flats, as well as private residential property is six unrelated persons.”
“For mortgage loans taken up with the Housing and Development Board (HDB), only flat owners are allowed to be the borrowers of their housing loans and they are liable for the loan repayments. HDB does not enter into any agreement with third parties who do not own the flat to make the HDB loan repayments on someone’s behalf.”
“The number of HDB flats completed each year depends on a variety of factors such as the number of flats that commenced construction in preceding years, and attributes of individual projects such as site availability, storey height, number of units, design, site conditions and constraints, which in turn affect the construction period. Projects with challenging site conditions or more complex designs may also take a longer time to construct. The combination of these different factors resulted in the lower number of completed flats in 2019. We have ramped up our supply and resources to reduce the extent of the delays to BTO projects brought about by the COVID-19 pandemic and are working hard to deliver affordable and quality homes for Singaporeans. In 2022, HDB delivered more than 20,000 flats across 22 housing projects, the largest number of flats and housing projects in the last five years. The number of flats completed increased by 50% from 2021. However, there remain constraints at certain planned BTO sites. For example, space constraints limit the number of temporary construction lifts and machinery on-site. Where possible, we have optimised construction time through the use of technology, while complying with safety regulations and quality standards. Nonetheless, we will sustain our efforts to deliver affordable homes as soon as possible, while not compromising on quality and safety.”
“There are currently 3,218 Sigma brand lifts installed in public housing estates. As lift owners, Town Councils are responsible for the maintenance and replacement of lifts in HDB estates. Today, the Government already provides a 50% matching grant for every dollar contributed by Town Councils to their Lift Replacement Fund (LRF), which is ring-fenced for lift replacement expenditures. The tender restriction on Sigma was lifted in October 2020 as the performance of Sigma lifts has improved and is comparable with lifts in other public housing estates. Hence, there may not be a need for such lifts to be replaced earlier. Town Councils can work closely with their respective lift maintenance contractors to identify the root causes of lift breakdowns and address them proactively. Nevertheless, if the Member has any specific feedback to raise regarding the performance of Sigma lifts in her constituency, please surface them to HDB and we can take a closer look.”
“Flat owners must seek HDB’s approval before renting out their flat or bedroom(s). They must also register their tenants with HDB and comply with the occupancy cap and other terms and conditions. The occupancy cap, set at four persons for 1- and 2-room flats and six persons for 3-room and larger flats, serves to minimise the potential disamenities caused by overcrowding in our public housing estates and maintain a conducive living environment for all residents. As long as the total number of occupants complies with the occupancy cap, HDB will approve flat owners’ requests to include additional tenants, such as the spouse or other next-of-kin of an existing tenant. Owners will be requested to provide the relevant supporting documents for HDB’s verification. The occupancy cap does not apply if all the tenants renting a whole flat are from the same family unit. Requests to exceed the occupancy cap are assessed on a case-by-case basis. For flat owners in extenuating circumstances such as financial hardship, HDB may consider exercising flexibility and allow a temporary increase in occupants.”
“The Government will continue to study options to augment the range of housing and care options available to seniors depending on their care needs, income and level of family support.”
“The Community Care Apartments (CCAs) are a new initiative that expands the continuum of housing-cum-care options for seniors. CCAs integrate senior-friendly design features with care services that can be personalised as seniors’ needs evolve. The care services and social programmes offered will cater to seniors across a wide range of care needs and enable seniors to age-in-place independently within the community. We have launched two CCA pilot projects so far, at Bukit Batok and Queenstown. Both sites are still under construction, and will yield a total of about 410 units when completed. The first CCA pilot at Bukit Batok is estimated to be completed in 2024, while the second CCA pilot at Queenstown is expected to be completed in 2028. The current expected waiting times for these flats from the median month of flat selection to expected completion are about 35 and 59 months respectively. The public response to CCAs has been positive. We are studying the feedback received as we develop the longer-term plans for CCAs and will share more when ready. Apart from CCAs, seniors may also consider other housing and care options. For seniors who prefer to continue living in their current homes, they can tap on centre-based and home care services. HDB’s Home Improvement Programme (HIP) and Enhancement for Active Seniors (EASE) Programme have also helped about 280,000 households in making their homes more elderly-friendly. For those who are looking to right-size, they can choose to buy a 2-room flexi flat on a shorter lease. Some of these flats are located close to eldercare facilities. For seniors with higher care needs, they can consider nursing homes.”
“Under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), wildlife species are listed under three appendices, depending on how threatened or endangered the species are. Appendix I species are threatened with extinction but can be traded under exceptional circumstances. For example, CITES allows Appendix I specimens to be traded for non-commercial purposes such as for scientific research. Most CITES-listed shark species are in Appendix II, where their survival may be threatened if trade is not regulated. While commercial trade of such species is allowed, all CITES species brought into Singapore must be accompanied by CITES permits in accordance with CITES rules and regulations. The National Parks Board (NParks) conducts regular inspections on importers, relies on tip-offs from other regulatory agencies and international partners and carries out market surveillance, to identify shark’s fin shipments that may not have the necessary CITES permits. Accordingly, our inspection process goes beyond a simple sampling approach. To confirm if these shipments contain CITES-listed species, frontline officers use an Artificial Intelligence-based mobile application known as the Fin Finder to help them visually identify shark species quickly and accurately. Further DNA testing is then conducted on suspicious shipments at NParks’ Centre for Wildlife Forensics.”
“The National Parks Board (NParks) carries out regular training for officers involved in the enforcement of the Endangered Species (Import and Export) Act (ESA) and the Wildlife Act (WA), to ensure that they are well equipped to take on their responsibilities. The training covers the implementation of CITES provisions and Singapore’s legislative framework, as well as investigative methods, including the identification of wildlife species regulated under ESA and WA. NParks also leverages science and technology to support officers involved in the enforcement of these Acts and ensures that they are trained in the use of such tools. For instance, our researchers at the Centre for Wildlife Forensics are trained to use molecular methods such as DNA barcoding to aid in species identification. Lastly, to keep up with developments in the field and to share best practices, NParks officers attend international conferences and workshops, such as those organised by INTERPOL on combatting wildlife crime. These efforts have helped us to strengthen Singapore’s enforcement against wildlife-related offences under ESA and WA.”
“The sale and purchase of a Housing and Development Board (HDB) resale flat is premised on the caveat emptor principle, as with the sale and purchase of resale private properties. Flat owners are responsible for the maintenance and repairs needed to upkeep their flats. Generally, they would have to engage their own contractor to carry out any repairs within their flats. On a case-by-case basis, if they need help, HDB may assist to check and offer advice to the flat owners on the remedial repairs. HDB will also provide a list of repair contractors to flat owners if they encounter difficulties in engaging one. However, the decision lies with flat owners if they wish to proceed with the repair and whom they intend to engage. For maintenance issues arising from external sources such as wall seepages, HDB will work with the Town Council to provide advice or assistance to the flat owner to address such issues. HDB does not collect comprehensive data on repairs done within flats by owners, or information on repairs effected by Town Councils through their integrated estate management systems. Buyers of HDB resale flats are advised to inspect and be satisfied with the condition of the flats that they are purchasing before committing to the purchase. Home buyers may engage a Qualified Person, for example, a building surveyor, to help them with the inspections before the purchase if they find it necessary.”
“Private property owners affected by the 15-month wait-out period may have also turned to the HDB rental market, contributing to the demand. Between 30 September 2022 and 30 November 2022, HDB received 1,284 appeals from PPOs or ex-PPOs to waive the 15-month wait-out period. Thus far, 902 appeals have been processed and about 38% of them were successful. The majority of successful appellants had already committed to buy the resale flat, with an Option to Purchase (OTP) that was obtained before 30 September 2022. HDB is progressively reviewing the remaining appeals received. HDB evaluates each appeal carefully on a case-by-case basis based on individual merits of the case, such as whether the appellants have committed to the purchase of a resale flat prior to 30 September 2022, or whether the appellants are in financial difficulties and do not have viable housing options.”
“As part of the property cooling measures introduced on 30 September 2022, private residential property owners (PPOs) and ex-PPOs are required to serve a wait-out period of 15 months after the disposal of their private properties before they are eligible to buy a non-subsidised resale flat. This is a temporary measure to help moderate demand for resale flats. Nevertheless, to support seniors in right-sizing to enhance their retirement adequacy, the 15-month wait-out period does not apply to those aged 55 and above, including their spouses, who are moving to a 4-room or smaller resale flat. Besides the cooling measures, HDB has ramped up the flat supply by about 35%, from about 17,100 BTO flats being launched in 2021 to about 23,200 BTO flats being launched in 2022. We will continue to launch up to 23,000 BTO flats this year. There has been some moderation in the resale market, as HDB’s Resale Price Index in the fourth quarter of 2022 registered an increase of 2.3% over that in the third quarter of 2022. This is lower than the 2.6% increase in the third quarter of 2022 and is the lowest quarter-on-quarter increase in 2022. Total resale volume has also moderated. For 2022, the total resale volume was about 10% lower than in 2021. We will continue to closely monitor and adjust our polices where necessary, to ensure a stable and sustainable property market. Median rents for HDB flats have increased in recent quarters, due to strong demand for rental accommodation from various groups such as Singaporeans temporarily renting while waiting for the completion of HDB and private properties that had been delayed due to COVID-19 as well as people coming to Singapore to work or study.”
“Depending on the outcome of the assessment commissioned by HDB, the Singapore Standards Council will assess the need to further review the relevant standards, on top of the periodic review carried out every five to eight years to ensure their relevance. Correspondingly, HDB will also assess the need to further review the specifications and maintenance practices for flats.”
“They can also engage a paint specialist to recommend a more optimal repainting method for any unique situation. If necessary, they may approach HDB for further advice. For newly-completed HDB blocks which are handed over to the Town Councils for management and maintenance, a six-year warranty period for external painting is also provided. This warranty covers defects or imperfections such as peeling paint, discolouration and mould growth. During this warranty period, Town Councils can approach the building contractor and their paint specialist to rectify any defects or imperfections identified. The external walls of all HDB developments are painted with one coat of water-based sealer and two coats of algae-resistant emulsion paint. The water-based sealer enables better paint adhesion to the surface and is commonly used on external walls before the application of algae-resistant emulsion paint. The algae-resistant paint contains biocide which prohibits the growth of algae culture and gives the paint its algae resistant properties. The sealer and emulsion paint used in HDB blocks complies with the Singapore Standard 579 and the Singapore Standard 345 respectively, and they are also commonly used for buildings in Singapore, for both public and private sector projects. These standards, which have helped ensure that external façade walls remain clean and clear of mould over the last 20 years, were most recently reviewed with industry experts in 2021 to ensure that the standards are updated and remain relevant to the industry. These standards were also used in numerous other HDB projects, where no such incidents of mould growth have been identified, including developments located near water bodies.”
“This study is expected to take about three to four months to complete. Nonetheless, HDB has assessed that the mould growth observed for affected blocks does not affect structural components and poses no risks to the structural integrity of the building. Mould growth is not limited to a building’s exterior. Mould is also commonly found indoors, such as in bathrooms, where the higher humidity and dampness create a more conducive environment for mould to grow. There are several factors that determine the presence and magnitude of the health risks caused by mould. For example, the level of risk faced by an individual is influenced by the individual’s activity patterns and proximity to mould, including the duration for which the individual is exposed to the mould, as well as the individual’s current health, such as whether he or she has any chronic illnesses, particularly, respiratory related. The impact of mould on one’s health would hence, for example, be less arising from the mould on the facades than in the bathroom. Nonetheless, the technical study mentioned will be identifying the species of mould found at Anchorvale Parkview and Matilda Court for further risk assessment. To rectify mould growth on external walls, thorough cleaning of the external walls and patching of cracks is conducted, before repainting with sealer and algae-resistant paint. This is usually carried out by Town Councils as part of their management and maintenance of the common property. The recommended schedule for Town Councils to carry out Repair and Redecoration (R&R) works is seven years. Nonetheless, Town Councils have the discretion to decide whether to slightly advance or defer such works beyond the recommended schedule, depending on their operational needs.”
“My response will also cover the matters raised in the question by Assoc Prof Dr Jamus Jerome Lim which is scheduled for a subsequent Sitting. I would invite the Member to seek clarifications if need be. If the question has been addressed, it may not be necessary to proceed with the question for future sittings. Prolonged exposure to severe environmental conditions, such as high temperatures and intense rainfall, may generally accelerate the deterioration of building façade materials. To ensure that façade deterioration is detected and rectified in a timely manner, the Building and Construction Authority (BCA) implemented the Periodic Façade Inspection (PFI) regime last year. Under the regime, buildings that are more than 20 years of age and over 13 metres in height must be inspected by a trained professional every seven years. This will help building owners to ensure that their building façades are safe and well-maintained throughout the lifespan of their buildings. BCA is also conducting a study on the impact of changing climatic and weather conditions on the service life of façade materials, which will contribute to the identification of more durable façade materials and the development of best practices for their maintenance. BCA will continue to review its requirements regularly to ensure that they are on par with international standards and take into account the latest climate projections. To determine the cause of mould growth observed at Anchorvale Parkview and Matilda Court, HDB will be commissioning an independent professional technical study. The scope of this study will also address why some blocks are more susceptible to mould growth and include recommendations to remedy the current situation and to prevent future recurrence.”