Desmond Lee
Singapore
“The Leadership, Enrichment, Achievement, Participation and Service (LEAPS) 2.0 is a framework for recognising student participation and achievement in secondary school co-curricular programmes.”
“The Ministry of Education (MOE) is mindful of the impact that rising temperatures may have on our students, teachers and officials taking part in the National School Games. Matches are scheduled only after students have had the time to train and become progressively more heat acclimatised.”
“As shared in Parliament in March 2026, the proportion of students with special educational needs (SEN) in mainstream schools has remained stable, at around 7% of the overall student population. This stability is observed across both primary and secondary schools.”
“The Ministry recruits and assesses applicants based on merit and suitability for the teaching profession, regardless of gender. We look for individuals with a passion for teaching, a belief in the potential of every child, and who possess the values and character to make a positive difference in students' lives.”
“Over the past five years, an average of 750 teachers resigned from the Education Service annually, representing a resignation rate of around 2%.”
“MOE has also progressively strengthened open access within the Primary 1 Registration Framework through Phase 2C, which is open to students regardless of whether they have prior connections to the school. MOE had increased the number of reserved Phase 2C places from zero to 20 in 2014; and from 20 to 40 in 2022.”
The complete record
Every one of 3,698 lines we hold for Desmond Lee, in date order, each linked to its source. Free to read, in full, without an account. Page 27 of 74.
“As we listen to different feedback and proposals, we should be frank about our challenges and the trade-offs and explain how we seek to meet the competing needs of Singaporeans in the current generation as well as future generations. The Government has always been frank and upfront about all these matters. (In English): Mr Speaker, Sir, our public housing is not perfect, but it has made housing accessible and affordable for Singaporeans and we must always keep improving it. Ninety percent home ownership in a cosmopolitan city is not something that many other major cities have been able to achieve. But these achievements are not just our own. Our predecessors worked so hard to build public housing for Singaporeans, worked so hard to pay for their own homes and above all, worked so hard to build up our reserves so that the next generations, including our own, would have a better life than them. So, we, the beneficiaries of their foresight and prudence, should inherit these same values and do the same for the next generation. [Applause.] [(proc text) Question proposed. (proc text)] 5.31 pm”
“After that, we will also recalibrate our building programme so that SWT flats will form a larger proportion of our supply of new flats. In terms of demand, we will continue to review how we can better allocate flat supply to first-timers, especially those who are getting married as well as those who have young children, and who are looking to buy their very first home. We are also looking at measures to reduce the rejection rate for BTO applications to ensure that BTO flats are prioritised for those with genuine and urgent housing needs. We will consider if more housing support can be given to first-timers buying a resale flat. We will announce these new measures when ready. We are not just building more flats in the mature estates but also consciously moderating the prices there. For example, we launched the Prime Location Public Housing (PLH) model where public housing in prime and central locations will come with additional subsidies to ensure that they remain affordable and accessible for Singaporeans. We are also considering how to prevent locational premiums from pricing out all but the most well-off buyers, while avoiding an excessive windfall gain for those who successfully book such a flat in the mature estates. The Government has been committed to home ownership for our citizens since day one of our nation building. As a responsible Government, we will always ensure that housing policies remain sustainable as we continue to improve them. Our predecessors have worked hard to build the public housing system for Singaporeans so that we and our next generations will be able to have a better life than them. We are the beneficiaries of their foresight and prudence and should do the same for the next generations.”
“If HDB does not pay for fair market value for state land, it means that we are reducing the value of reserves and allocating more of it to today's housing. By doing so, we are reducing the resources available to meet the other needs of today's generation as well as the needs of future generations. Mr Leong deliberately avoids these trade-offs and sugarcoats the tough realities that we all face. But the Government cannot and will not take such an irresponsible approach. Mr Speaker, this Government has been committed to home ownership for our citizens from day one of nation building. Embedded in this commitment is also our vision for a strong and cohesive nation and an inclusive society. But what this Government believes equally in is to be frank about our challenges and trade-offs and explain how we seek to meet the competing needs of Singaporeans in the current generation as well as balance the needs of this generation with the needs of future generations. Mr Speaker, Sir, let me say a few words in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] The Government understands that Singaporeans are concerned about public housing because of three key reasons: (a) high resale prices over the past three years; (b) the apparently high BTO flat prices in mature estates; and (c) the uncertainty in getting a chance to book a flat and the long waiting times for BTO flats. The Government is working hard to ensure that public housing remains affordable and accessible. In terms of supply, we are committed to launch up to 100,000 new flats between 2021 and 2025 if needed. We also intend to launch around 2,000 to 3,000 Shorter Waiting Time (SWT) flats per year from 2025 onwards. These flats will have waiting times of under three years.”
“That was a major motivation for us to create and develop the CPF system and I have explained how, with the CPF, public housing today is more affordable to most Singaporeans. It is easy to ask, why not make flats even cheaper? As a society, we have to debate and agree on how affordability should be fairly defined because ultimately, we, the people of Singapore, are all collectively paying for it. We already allocate substantive fiscal resources to support the Home Ownership Programme. In the last financial year, HDB incurred a deficit of $3.85 billion on its Home Ownership Programme. Many of us may not appreciate what this means. To put this into perspective, the revenue from the 1% GST increase this year is less than half of this. What about the needs of our citizens for healthcare, education, transport and so on? We have heard many alternative proposals, including from Opposition Members of Parliament, and we give them the benefit of the doubt that the intent is to improve the lives of Singaporeans. But they are not as frank about the trade-offs. For example, Mr Leong Mun Wai says that BTO flats can be even cheaper if HDB does not have to pay for state land at fair market value. I have already explained that HDB does not price based on cost recovery. BTO flat pricing and BTO development costs are two separate and independent things. So, what Mr Leong has repeatedly asserted is plain incorrect. More importantly, land is part of our reserves. Proceeds from land sales do not come to the current Government as revenue for spending. The proceeds go back to the reserves in order to preserve the value of the reserves. We invest the reserves and use part of the investment returns to fund the Government's annual Budget and support the needs of current and future Singaporeans.”
“Our position is that we must maintain housing accessibility and affordability while keeping in mind other needs that Singaporeans have and ensuring that what we do is not at the expense of future generations of Singaporeans. In essence, land in Singapore is extremely limited and we allocate limited land and resources to support housing needs with a few key principles in mind. First, we are committed to home ownership because a home that we can call our own roots us to Singapore and provides the basic stability for our families and our children to grow up in. So, our HDB flats are kept affordable with significant subsidies and grants for first timers and as a home for life. Our housing policies are strongly geared towards ensuring that HDB flats are meant for living in, not for speculation. Second, we want public housing to be inclusive. We tier our grants to support the lower-income more so that despite their circumstances, they can still buy a home to build their families and their children can have a good environment to grow up in. For those who are not ready for home ownership, we provide public rental housing at heavily subsidised rates and paired up with ComLink to provide holistic social support for our tenants. Our policies, such as the Ethnic Integration Policy, also seek to promote social cohesion. We have recently made provisions to keep HDB flats in very central and attractive locations within the reach of the average Singaporean through the Prime Location Public Housing model. Third, we believe that individuals have a key role to play too. Each one of us has to do our part to save up and meet our own housing needs.”
“After that, over a period of time, we will recalibrate our building programme so that SWT flats form a larger proportion of our supply of new flats than today. In this way, we reduce waiting times and better support the home ownership as well as marriage and parenthood aspirations of Singaporeans. In terms of demand, we will continue to review how we can better allocate flat supply to meet the most urgent housing needs. In our public engagements, there has been one consistent point of agreement – that first-timers should be prioritised, especially those who are getting married as well as those with young children and who are looking to buy their very first home. We are therefore studying how we can provide even more support for such first-timer families looking to buy their first homes. We are also looking at measures to reduce the high rejection rate for BTO applications to ensure that BTO flats are prioritised for those with genuine and urgent housing needs. And we will consider if more housing support can be given to first-timer couples or first-timers buying a resale flat to help them in their home ownership aspirations. We will announce these new measures when ready. But in improving our policies on housing, we must as a responsible Government always ensure that they remain sustainable. They must enable us to continue providing Singaporeans with accessible, affordable housing not just now or for the next election term, but decade after decade, for the next generation of Singaporeans and the generations after that. That is why we disagree with the Progress Singapore Party’s (PSP) implicit claims in its Motion and decided to table our own.”
“We are not just building more flats in the mature estates but also consciously moderating the prices there. For example, we launched the Prime Location Public Housing (PLH) model where public housing in prime, central locations come with additional subsidies to ensure that they remain affordable and accessible to Singaporeans. The quid pro quo is that they come with additional conditions. However, flats in desirable locations in the mature estates cannot be priced at the same level as other flats. Even Mr Leong acknowledges the need for "price differences between locations" in his Facebook post. We are considering how to prevent the locational premiums from pricing out all but the most well-off buyers while avoiding an excessive windfall gain to those who successfully book such a flat in the mature estates. In addition, I would like to encourage first-timer couples not to put your family plans on hold and consider a BTO flat in a non-mature estate first. On our part, I would also like to assure Singaporeans that we are doing our utmost to improve the accessibility and affordability of HDB flats. We know that policies cannot remain static as the aspirations and needs of our people change and our society evolves. That is the reason why we have been engaging thousands of Singaporeans as part of our Forward Singapore engagements over the past few months. In terms of supply, we are committed to launching up to 100,000 new flats between 2021 and 2025 if needed. Once we get over this current challenge, we intend to launch more Shorter Waiting Time (SWT) flats from 2024 onwards. We aim to reach pre-COVID-19 levels by launching around 2,000 to 3,000 SWT flats per year by 2025, with waiting times of under three years.”
“We hear the reasons and aspirations of young couples. They want to stay near parents and living nearer to transport nodes can save time in terms of going to work. They tell us because buying a home is one of their single largest life decisions, they feel they cannot compromise on location. If it is the single most important buy, it must not be a "second-best" that they have to live with for years to come. We can understand their point of view. However, many people think the same way. But mature estates are already built up and available new land is limited. Despite these constraints, we have been doing our best to launch more projects in the mature estates in the last few years. But the irony is this – the more BTO flats we supply in mature estates, the more buyers join the queue. Why? Because Singaporeans can see that the subsidy in a BTO flat is real and realisable and that it means that after the Minimum Occupation Period (MOP), they can sell the flat if they need to move and make capital gain. This is especially the case for flats in mature estates because they are highly sought after. Would it then help to price these flats even lower? If we did so, we would be increasing the windfall gain that successful buyers enjoy and even more may join the queue. The result would be higher demand, greater competition for BTO flats in mature estates and greater anxiety among flat buyers all around. At the end of the day, this will not help first-timer couples who are looking for a flat to build their families. It will also be unfair to all the families who failed to secure a flat in a mature estate and so missed out on the large windfall gain. So, what have we been doing?”
“] Close to 70% of the BTO flats that were launched last year, 2022, across all estates can be affordably purchased with a household income of $8,400 at a MSR of 25% or less, meaning that these households use a quarter or less of their household income to pay for the mortgage instalment. Third, after two rounds of cooling measures last year, we are seeing some moderation in the rate of increase in resale prices and we are keeping a close watch. This is set against the context that 90% of Singaporeans own their homes today. More remarkably, around 85% of our low-income households own their homes. Generally, our HPI ratios are four to five times. This means that it takes around four to five years of total household income to buy a home. If you look at Annex 9, it shows how we compare with other major cities. [Please refer to Annex 9.] In London, Los Angeles and Sydney, it is between eight and 15 times income, so between eight and 15 years of total household income. In Hong Kong, it is more than 20 times. So, while there are concerns over resale prices, public housing remains broadly accessible and affordable today. Why not make it even cheaper? My colleagues and I have been engaging a broad spectrum of Singaporeans on public housing in the past few months. One of the concerns is over access to flats in mature estates. Many young couples have not been successful in securing a BTO flat because they are trying hard to secure one in a mature estate. This can be seen from the first-timer BTO applications to mature estates which is about 1.6 times that to non-mature estates in 2022. The pandemic has also exacerbated this, as the highest application rates to mature estates over the past six years have all been in the last three years of this pandemic.”
“In non-mature estates, BTO flats are typically priced at around a Mortgage Servicing Ratio (MSR) of 25% or less, to ensure that buyers can use less than a quarter of their household income to pay for the mortgage instalment with little to no cash outlay. In mature estates where the locations are more diverse, MSR can exceed 25% in certain areas, with HPI of around five times or more. We also establish the market value of our new flats, based on the recent transacted prices of comparable resale flats nearby. Please refer to Annex 7. [Please refer to Annex 7.] As you can see, we have kept BTO prices relatively stable even as median household incomes have increased. To launch BTO flats at selling prices that are below market and are affordable to flat buyers across different income levels, we have to apply a substantial market discount. On top of this, we provide generous grants. Eligible first-timers can enjoy the Enhanced CPF Housing Grant (EHG) of up to $80,000, with more in grants provided to those with lower incomes. Mr Leong Mun Wai claims that the Government has somehow lost its way and public housing is way too unaffordable. Let us look at the facts. First, for first-timers who apply for BTO flats in non-mature estates, virtually everyone gets a chance to select a flat within three tries. Second, more than eight in 10 buyers who collected their keys to BTO flats or bought resale flats last year, 2022, can service their monthly mortgage fully from their CPF contributions with little to no cash outlay. The median Singaporean household income is $8,400. Do you know the proportion of BTO flats that would be affordable to this family? Is it half of all BTO flats because it is median? The answer is no. Please refer to Annex 8. [Please refer to Annex 8.”
“We completed more than 20,000 homes last year, 2022, the highest annual number in the past five years, reflecting a concerted effort by HDB and the contractors working together to catch up on lost time to help to complete delayed projects. And we will press on to finish building another 20,000 flats this year, deliver more keys to waiting home buyers. We have also ramped up the supply of BTO flats to meet the higher demand. In 2022, we launched over 23,000 new flats. We will launch another 23,000 new flats this year. Between 2021 and 2025, in total, we will launch up to 100,000 new flats if needed. We had earlier introduced Shorter Waiting Time (SWT) flats before the pandemic, so you wait less than three years for a flat. While there have been some delays, more than 8,000 of such flats will be completed in the next two years. We have done more to prioritise First-Timer (FT) young couples. Since August last year, we have set aside at least 95% of 4-room and larger BTO flats for FT families, both in mature and non-mature estates. Despite strong demand and rising construction costs in these past two years, we have kept BTO prices almost flat. Please refer to Annex 6. [Please refer to Annex 6.] In 2019, a 4-room BTO flat in a non-mature estate was priced at $341,000 on average before grants. In 2022, the average price was $342,000. The price has barely changed. We do so by setting BTO prices based on affordability outcomes rather than just pass on rising costs to buyers. For instance, construction costs shot up almost 30% in this period. But we do not price BTO flats based on cost. Instead, we look at the household income across different levels and establish what the prices of flats should be to make them affordable to flat buyers.”
“When people saw that the supply of BTO flats was disrupted and project completions delayed, some decided to get a resale flat instead, so, demand for resale flats went up. Others got worried and decided to join the BTO queue even earlier because they did not know if they could indeed successfully ballot for one on time and they also saw that the waiting times got lengthened because of COVID-19. So, the demand for BTO flats also went up, causing further anxiety. Take a look at Annex 5. [Please refer to Annex 5.] Over the last three years of the pandemic, first-time BTO applicants increased by 80% and second-time BTO applicants grew even more by a whopping 140%, compared to the preceding three years from 2017 to 2019, pre-pandemic. At the same time, there has been a marked shift in social norms. Young Singaporeans want to move out to live on their own earlier. This trend may have been accentuated by the pandemic, as many people worked from home and wanted more space of their own. As a result, housing demand spiked. There was also a sharp rise in the resale prices. On the ground, young couples shared with us their concern about the sharp rise in the resale prices, the perception that choice BTO projects in mature estates are more expensive and the overall worry that HDB flats may be out of reach. In fact, their parents worry even more. We fully appreciate these anxieties, even as we work hard to ensure that BTO flat prices remain stable. We know that Singaporeans are unhappy about the longer wait times and the delays. So are we. My HDB colleagues have been working hard to catch up on lost time. Please refer to Annex 4 again.”
“In fact, these numbers have been skewed because of the higher application rates in the earlier years by singles. If you take that away for 3-room and larger flats, the application rate in the non-mature estates was very low – one point something, two point something before COVID-19 hit. The Home Price to Income ratio (HPI) – Members will be familiar with this concept – HPI measures broadly the number of years of total household income that it takes to pay for a home. Let me draw Members' attention to Annex 2. [Please refer to Annex 2.] Look at the chart. In 2012, the HPI for a 4-room flat in a non-mature estate was six. So, about six years of total household income to afford a home. From 2015 onwards, the HPI had dropped and remained below 5. This is because the annual increase of BTO flat prices in non-mature estates is less than 1%, lower than the 3% annual increase in incomes. Members, please refer to Annex 3, the next page. [Please refer to Annex 3.] You can see that HDB resale prices also stayed fairly stable and even somewhat softer. This was the period prior to COVID-19. In fact, from 2013 to 2019, the HDB Resale Price Index (RPI) experienced almost six consecutive years of decline, falling by around 12%. But in the last three years, supply has become tight and resale prices have risen. Why did this happen? First, our building programme took a very hard hit during COVID-19. Construction work was halted for a few months, there was a severe worker shortage, the supply of construction materials was disrupted and we had to shore up construction firms all over Singapore. As you can see from Annex 4, in 2019, before COVID-19 hit, we completed some 12,000 flats. [Please refer to Annex 4.] In 2020 when COVID-19 hit, we completed fewer than 8,000 units.”
“Members may also access these materials through the MP@SGPARL app. In the course of my presentation, I will refer Members to the various annexes and then you can follow as I speak. Mr Speaker, Sir, I beg to move, "That this House affirms the importance of keeping public housing affordable and accessible while protecting the interests of current and future generations of Singaporeans, and endorses the commitment of the Government to these twin goals.” Sir, this Government is committed to keep HDB flats affordable and accessible for Singaporeans. This has been the work of several generations and we will continue to work hard to deliver this commitment. We help Singaporeans own their homes by: (a) building public housing in step with demand; (b) by pricing new flats affordably and providing generous grants to first-time buyers; and (c) by maintaining a stable and sustainable property market where asset values increase in tandem with economic growth. In the past 10 years before COVID-19 hit, we had a fairly stable market. We grew HDB supply in step with demand. This is because we saw household sizes falling as part of societal trends, with the nuclearisation of families and more singles wanting to live alone. We opened up access to better meet housing aspirations of singles. May I refer Members to Annex 1. [Please refer to Annex 1.] If you look at the chart, you will see that from 2001 to 2021, while the number of residents living in HDB flats increased by only 10%, we had increased the total number of HDB flats by 29% – almost a third. In fact, if you look at the boxes at the bottom of the chart, we have the 2011, 2016, 2021 BTO application rates, these were lower before COVID-19 and spiked up during the COVID-19 years.”
“With your permission, Mr Speaker, may I ask the Clerks to distribute the annexes before I begin my speech?”
“Flat owners who rent out their flat must comply with the applicable Terms and Conditions (T&Cs). These include the need to conduct regular checks on their tenants to ensure that there is no breach of the T&Cs, that the flat is only occupied by the registered tenants and that tenants do not create nuisance to the neighbours. HDB may terminate the rental approval if flat owners fail to adhere to any of the conditions within the T&Cs. In the last five years, HDB received a total of about 600 pieces of public feedback on nuisance caused by tenants. For such feedback, HDB generally adopts a mediative approach, and advises flat owners to remind their tenants to be mindful of actions which may cause disturbance to other residents. This approach resolved about 80% of the feedback received. Hence, the vast majority of such feedback is resolved without the need for any tenancy actions. For the remaining cases where the nuisance persists, the flat owners took action to terminate the tenancy with the tenants.”
“Generally, greenfield sites are land parcels that were not previously developed, while brownfield sites are land parcels that have been previously developed or are vacant, infill parcels amidst existing developments. Approximately half of the sites used for public housing developments over the past 10 years were greenfield, for example, in Punggol, Tampines North and Tengah. The brownfield sites were mainly infill developments in mature towns, for example, Bukit Merah and Kallang Whampoa. Annually, there were about 10 to 20 greenfield sites, that yielded approximately 5,900 to 14,900 flats. For brownfield sites, there were about five to 20 sites, that yielded approximately 2,900 to 13,100 flats. Details of future Build-To-Order (BTO) launches depend on the prevailing demand and will be shared when ready.”
“HDB flats are primarily meant for owner-occupation, and hence all flat owners are subjected to a five-year Minimum Occupation Period (MOP), or a 10-year MOP for Prime Location Public Housing (PLH) flats, before they can sell their flat on the open market. As at December 2022, there are about 379,700 flats purchased from HDB that have not been resold by their first owner. Flat owners resell their flats for various reasons, such as to purchase a larger flat to accommodate a growing family, or to right-size for their needs. They may also prefer to move nearer to ageing parents or their children for mutual care and support.”
“Information on the breakdown of private residential property transactions for each of the last 10 years is in Table 1.”
“Between 2017 and 2021, HDB offered about 21,200 2-room Flexi flats. In 2021, HDB launched the first Community Care Apartment (CCA) pilot at Bukit Batok with about 170 units. About 18,300 seniors applied for the 2-room Flexi flats, and about 600 seniors applied for the CCAs. Seniors who are successful in their applications can select their preferred lease tenure during their flat booking appointment. For 2-room Flexi flats, as with other flat types, application rates vary across projects depending on their locations and attributes. To maximise applicants' chances of securing a flat, HDB invites more applicants for flat booking than the available flat supply, as some applicants who are successful in the ballot may not book a flat. Overall, between 2017 and 2021, about four in five seniors who applied for the 2-room Flexi flats were successful. The remaining one in five seniors were unsuccessful as they applied for popular projects which were over-subscribed. For the CCAs, about one in two applications were unsuccessful. About half of the seniors who were unsuccessful in their applications for 2-room Flexi flats or CCAs were already living in a 4-room or larger HDB flat at the point of application.”
“Since 2018, the Housing and Development Board (HDB) has offered close to 11,000 Build-To-Order (BTO) flats with shorter waiting times of less than three years. The number and proportion of such flats launched each year are tabulated in Table 1. BTO flats with shorter waiting times are achieved primarily by starting construction works before the BTO projects are launched for sale, often about one year ahead. To meet strong housing demand in the near-term, HDB will be launching up to 23,000 flats in 2023, with a total of up to 100,000 new flats from 2021 to 2025 if needed. Where possible, HDB will launch BTO projects with shorter waiting times. Details on flats with shorter waiting times in our sales launches will be announced at a later date.”
“Town Councils (TCs) are autonomous legal entities formed under the TCs Act and managed by elected Members of Parliament. The TCs are responsible for their financial sustainability, through managing their income and expenses prudently. We understand TCs face higher costs due to higher energy prices, manpower costs and costs of maintenance services. Such cost increases are not unique to Singapore and the Government has taken steps to partially cushion the impact on residents. To help TCs cope with costs, the Government provides grants such as the Service and Conservancy Charges (S&CC) Operating Grant, Lift Maintenance Grant, GST Subvention Grant and Lift Replacement Fund Matching Grant. Collectively, these grants to TCs amount to about $239 million a year. The Government will continue to monitor the larger macroeconomic environment, cost drivers affecting TCs, their income sources and overall financial positions, and assess if further funding support is required.”
“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. Between 30 September and 30 November 2022, HDB received about 120 appeals from PPOs/ex-PPOs who had commenced divorce proceedings prior to the introduction of the 15-month wait-out period, with the intention to purchase a resale HDB flat after the divorce. Thus far, 64 appeals have been processed, and about 52% of them were successful. HDB is progressively reviewing the remaining appeals received. HDB evaluates each appeal carefully on a case-by-case basis based on the individual merits, such as whether the appellants have made some form of commitment to the purchase of a resale flat prior to 30 September 2022, or whether the appellants are in financial difficulties and would not have viable housing options.”
“URA has an existing bonus Gross Floor Area (GFA) scheme to incentivise private developers to provide indoor communal spaces. Today, most private developers provide communal facilities such as function rooms to cater to residents' needs. These communal spaces can be used for private wakes, if the Management Corporation Strata Title (MCST) of the private residential development allows it. There are also other spaces available for funeral wakes, including purpose-built funeral parlours and places of worship.”
“As at end 2022, 16,200 households who were servicing their HDB loans were in mortgage arrears of three months or more. This represented 6% of all households with outstanding HDB loans. The corresponding figures as at end 2021 were 18,200 and 6.5%. Of these households in mortgage arrears, about half had at least one flat owner aged 55 years and above. Nevertheless, about three-quarters of households with at least one flat owner aged 55 years and above have fully paid off their housing loans. To help households in mortgage arrears, HDB provides one-to-one financial counselling and may assist them through measures such as allowing them to temporarily reduce or defer their loan instalments, or extend their loan tenure to reduce their monthly instalments. HDB may also refer households in financial hardship to other agencies for financial aid or other support services. For those with prolonged financial difficulty, HDB will help them explore long-term solutions, such as including working adult children as joint owners to help with the loan instalments, or right-sizing to a flat within their means. We encourage flat owners facing financial difficulties to approach HDB early, to explore options for support.”
“For the Public Rental Scheme, all applicants who meet the eligibility criteria will be placed in the queue and allocated a flat when their turn is due. HDB will expedite the allocation for applicants who are in urgent need of a flat, such as those with medical grounds or other exceptional circumstances. The Parenthood Provisional Housing Scheme (PPHS) provides an additional temporary housing option for households awaiting key collection for their new HDB flats. While we are progressively increasing the PPHS supply from 800 units in 2021 to 1,800 in 2023, the supply remains limited. Currently, families looking for temporary housing may turn to the open rental market. Providing subsidies or grants for renting flats in the open market is likely to induce demand and drive up market rents, which would compound rather than help solve matters. As such, we have no plans to provide such rental subsidies. For low-income households with no family support and no other temporary housing options, HDB may offer them Interim Rental Housing on a case-by-case basis.”
“HDB introduced the Price-Quality Method (PQM) framework for all new HDB coffeeshop tenders in September 2018, and for new supermarket tenders in October 2019. By not focusing solely on price, the PQM framework enables HDB to select quality tenants to better serve residents, with an emphasis on good track record, productivity and community initiatives, as well as the provision of affordable food and grocery options. As part of their tender bids, new coffeeshop operators have committed to offer budget meal options, typically around $3, with one option at each stall. Meanwhile, new supermarket operators have committed to provide budget-priced options in 20 different essential grocery categories. The provision of these budget options is monitored by HDB through regular on-site inspections and engagement with the operators. After the initial three-year tenancy, HDB will review whether to renew the tenancy based on factors such as compliance with the tenancy agreement and whether the operator continues to serve the local residents well, including through the provision of affordable options. To ensure that halal food options are available for Muslim residents, new HDB coffeeshop operators are required to provide at least one halal food stall within their premises. This requirement was introduced in 2005.”
“With the easing of COVID-19 measures and the reopening of Singapore’s borders, there has been strong demand for rental accommodation both in the private and HDB rental markets, which has led to an increase in rents. Rental rates of HDB flats on the open market are private arrangements between the owners and tenants, and dependent on various factors, such as location and provision of fittings and furniture in the rental property. It would not be appropriate for HDB to interfere in private rental agreements. To facilitate informed decision making by owners and tenants, HDB publishes the median rent of flats in various locations with rental approvals under HDB’s Rental Statistics page. HDB implemented the Non-Citizen (NC) quota for renting out of flats in January 2014 to prevent the formation of foreigner enclaves and to maintain the Singaporean character of our HDB heartlands. Once the NC quota for a block or neighbourhood is reached, no further applications, whether a new or renewal application, will be accepted for renting to the affected group of non-citizen tenants. This helps to allow Singaporeans better access to rent a flat. Nevertheless, we will continue to monitor the housing and rental market conditions closely and review our housing policies to ensure they remain relevant in meeting the housing needs of Singaporeans.”
“The cost of land reclamation projects completed in the last 10 years ranges from around $270 to $850 per square metre. Land reclamation cost varies across projects, depending on the nature of the project and prevailing costs for materials and manpower.”
“Mr Speaker, I refer to the exchange I had with Member Mr Leong Mun Wai this afternoon regarding the Parliamentary Question on valuation of HDB land. In the course of the discussion, he asked me where, which post or which speech I was referring to when I spoke about his reference to the historical cost of land. At that point in time, I did not pull out the exact reference, but I would like to put it on record now. And that is a post on the 8 December 2022, where the Member referred to the cost of land or the modest sum, given under the Land Acquisition Act, between the 1970s and 1980s to the Pioneer Generation, who surrendered the land to the Government. And then, he went on to ask for land costs to be taken out of the picture.”
“There was an exchange between the hon Member and Senior Minister of State Sim Ann last year. And further, Facebook and social media posts. I think we leave that for the debate. If the Member tells us that he does not think Government should charge HDB at historical prices, then I think that advances the discussion. Basically, a step forward. 3.02 pm”
“We all recognise that resale prices have gone up. The reasons for this have been articulated before. That is why, amongst other things, we have made two rounds of cooling measures to moderate demand. We are also mindful of the headwinds that may come our way this year – economic headwinds, geopolitical headwinds, very high mortgage interest rates. So, all in, let us keep an eye on the resale market, both private and HDB. People are being rather prudent and careful as they should be. There are macro prudential rules to constrain overstretching. And if you have read news articles at the early part of this year, there have been reports that suggest that the property market is stabilising. It may be too early to draw definitive conclusions, but our overriding objective is to ensure stability in the property to ensure it does not run away from economic fundamentals. So, I think that is important. On top of that, we continue to study how to ensure that both BTO and the resale market continue to remain affordable for different groups of Singaporeans at different income levels. That study continues.”
“But look at the average BTO prices. They have remained relatively stable – of course, adjusting for different locations. That must mean that you have to adjust the subsidies even for projects launched in succession in an area, in order to ensure that there is stability.”
“I think we can deal with this more thoroughly in a debate on a Motion. The short answer is if you look at every brochure when we have a launch – and I am sure the Member has got residents come up to him to say, "Which one, 3-room, 4-room, which floor" – and if you look at the range of BTO prices, we made the effort to put the comparable resale price next to it. That is a sense, broadly, of the whole range of market subsidies that are given to Singaporeans. But we have to bear in mind that based on each family's circumstances, additional grants may or may not be available. So, it will vary, not just project by project, but also depending on who buys it. So, not just subsidies but also grants that a flat buyer receives. And we have provided the cost of construction, which is put out and published. The overall amount of money that Government uses as taxpayer dollar to fund home ownership is public information; it is a huge figure, with some breakdown. And we also put it in the brochure, not just for Members of Parliament but for individual buyers to get a sense of the range of the difference between the resale prices that are comparable and the prices that they are being asked to pay. Again, prices come in a range due to different floor, different facing, different block. And of course, as I have said before, the subsidies that we provide, on top of the grants, will vary from launch to launch, from year to year, even within the same town, because and especially when resale prices fluctuate a lot. I mean, when the market is flat, the subsidy is roughly about the same. But just think about it: you have resale prices shooting up 28%, 29% in the last two years. I may be getting my figures a bit wrong but broadly, you know the resale price has gone up a lot.”
“And the deficit has been growing, especially the last two years. So, that is first and foremost, the fallacy in the Member's question; and I hope that by this explanation, you understand how it is done. I go to the Member's first question where you asked how we ensure that resale price increases in the last two years do not overly push up BTO prices. I think what I have just explained answers that. In order to keep the price of BTO flats relatively steady, despite all these resale price increases, we first look at transactions of resale flats that are comparable. But then, we have to apply the appropriate subsidies and grants in order to bring down these costs to an affordable level for Singaporeans. That is why from year to year, from launch to launch, the subsidies have to be adjusted – because of location, because of resale prices – to ensure that relative stability in the BTO market prevails. We can have further debate on this when the PSP and the Government debate this. We welcome the WP to participate as well.”
“First, let me put it beyond any shadow of doubt: the Office of the Chief Valuer is independent. It is in the Constitution his powers and his protection are set out in law. And that answers his second question clearly. There is presidential protection on the Office of the Chief Valuer. Second, the Member asks how to ensure that the Chief Valuer's valuations do not overly impact the cost of BTO flat prices. We have explained previously that HDB does not price HDB flats to recover the cost of land and construction. The Member may be thinking about what the private sector does. The private sector developer bids for a piece of land. It has to be very careful how much it bids for. It then says, "Okay, let me call my consultant and contractor to ask about the costs of development. And then, let me set my per-square-foot price or price my units in order to recover my costs and also to make a profit." That must be it – being a profit-driven private sector. But I have said – and my colleagues and my predecessors have said – we do not price HDB flats to recover cost of land and construction. The land and construction prices fluctuate. And in some time in our history, including in the last two years, these prices fluctuated a lot – material prices, labour cost and land cost have gone up quite a bit because of the pandemic. If it were so, then, would you not see BTO prices shooting up? In fact, the average price of 4-room flats in non-mature estates has remained fairly constant before the pandemic in 2019 and last year, despite the resale market having gone up 28% to 29%. Why is that so? First, we do not price HDB flats to recover costs of land and construction. And that is why HDB collects far less than the costs it has to pay out.”
“Finally, while I said I would leave the debate on HDB affordability to another time – and as PSP has said, they would also debate in Parliament on this point – I will just make this final related point for Members to consider. We spend considerable amounts of national resources to keep our BTO flats affordable: at the house price-to-income ratios being comparable to other countries, where you can see the stark difference; at the mortgage servicing ratios as they are.”
“If our reserves are well-husbanded and grow, they give greater assurance that our future generations of Singaporeans will have resources to deal with crises, catastrophe and calamity, like pandemics, like war, like economic crises, like climate emergencies. If they grow, they not just benefit the security of our future generations, but they also benefit us today. While Government cannot touch the proceeds from land sales which go to the reserves and are then re-invested, part of the growth in value of our reserves, the Net Investment Returns Contribution (NIRC), is used to fund today's needs such as healthcare, housing, subsidies, security and so on. So, when state land is sold to HDB, HDB must put back into the reserves the fair market value (FMV) of the land, turn the land that is in our reserves into its equivalent value of money at this point in time, so the reserves are not worse-off or diminished. And FMV is determined by professional valuation principles. Mr Leong's proposal for HDB to pay historical price to the reserves means putting back into the reserves far less than what the state land is really worth today. This is a raid on the reserves, plain and simple, and will diminish the resources available for your children and their children. When Mr Leong advances his argument, it is about affordable housing, cheap housing; it is about valuation approach. So, it is complicated, with lots of charts, but the end product is housing will be a lot cheaper, but hey presto, with no need to pay more today by you. He says everything else but through sleight of hand, he hides from you the plain fact that he is really wanting to raid our reserves.”
“Or imagine one of our Pioneer Generation Singaporeans, one of our seniors, maybe in the past earning $500 a month, maybe more, maybe less; and who may have paid say $50,000 for his flat back in the early days. Today, because Singapore has done well thanks to his generation's hard work and contribution, it is certainly worth a lot more. When you go and do house visits, many seniors tell you proudly they are still living in the flat but it is worth a lot more. If you adopt Mr Leong's new approach, would this senior be required to sell at just above $50,000 or even with say, COV, cash over historical value? Would his children and descendants inherit a flat valued as it was back then in the 1960s, that is, worth very little compared to today's prices? We know that Mr Leong makes a superficially attractive proposition but we know that the proposal is unfair; it is not logical and simply cannot fly in the face of long-established, well-accepted valuation principles. Fourth, Mr Leong's valuation approach is actually dangerous for Singapore, because it is not really about valuation principles at all. It sounds like it, but it is not. He is in fact seeking to raid our national reserves in promising you that he can make HDB flats dirt cheap – but better, without having to tax Singaporeans more or to find ways to pay for it through revenue sources. As my colleague Minister Ms Indranee Rajah had explained late last year, state land is part of our national reserves – quite different from other countries, other provinces, other cities, other districts in other countries which use the sale of state land as a way to fund their recurrent expenditure. State land in our reserves has value. Its value grows if Singapore is well-managed and does well.”
“The valuer will usually apply established and accepted valuation principles accepted by the profession and by the public to determine current market value. For example, he looks at the relevant recent transactions, makes adjustments for attributes and so on, and produces the valuation report, detailing his grounds. But I do not think you or your professional valuer will base your transaction on how much the property had changed hands back in history. So, that is second. Third, the idea of valuing land at historical cost sounds attractive but is really problematic. If the land was acquired by the Government in the 1960s, HDB pays for the land at 1960s' pricing? If the land was, say, recently acquired, maybe 2015, then HDB pays the 2015 price, far higher than before? And what if the land had all along been state land and was never acquired by anyone or from anyone? Is the value of the state land at historical cost then zero, that is, HDB pays zero dollars? Or do we go back to 1819 or thereabouts or further back in time to try to find some historical transactional record that was made and say, "Ah, that is the price"? I think most people will understand why this is wrong. If you want to sell your property today, whether it is an HDB flat, condo, terrace house, shophouse or office, you will look at what it is worth in the market today and use that as some basis for you to transact, to bargain or to negotiate. Imagine if someone comes up to you and says point blank, "Hey, he should really be paying you the historical cost instead of market price", that is, how much you or your forefathers had paid for it way back in the past – let us use that as the basis, as it is really what it costs to you or your lineage.”
“Given that most Singaporeans own their homes, he is essentially saying that by a stroke of his pen, a significant portion of the asset value should be ignored. In fact, this was the discussion too that Mr Chiam See Tong had with then Prime Minister Lee Kuan Yew back on 21 March 1985 in Parliament, where Mr Chiam was arguing about what the real value of HDB land was and whether it could really be discovered. And after some to-ing and fro-ing, if you check Hansard, then Prime Minister Lee Kuan Yew stood up and asked the Member squarely. Allow me to quote. Mr Lee asked, "May I ask whether the Member concedes that there is such a concept called 'value of land'? And that there is such a profession known in Singapore as a Land Valuer? That the Government has a Chief Land Valuer? That there are, in the private sector, experts who regularly go to Court and give evidence as to what the value of land is? And that the Ministry of National Development, by transferring it from the HDB to the Government, is in fact making the books widely known that the value of each plot of land will be determined, and is determinable, because the land can be used for defence, it can be used for schools, it can be used for condominiums, it can be used for HDB, it can be used for URA, who is prepared to pay what price for what use. Is there no such concept as value of land?" That in a way is a rhetorical question that he asked at the end. And after some further exchanges, Mr Chiam accepted that if that was what the Prime Minister said, then that was what he said. Perhaps grudgingly but I think that made the point clear. So, that is the first point. Second, when you buy and sell land or property in Singapore, and I will say in many parts of the world, you may often call for a valuation report.”
“I must caveat that I am saying this broadly at the expense of technical accuracy and detail of the work actually done by the Chief Valuer, which is an independent office. But suffice to say, he adopts the same valuation principles used by professional valuers in the private sector and these principles are also consistent with the principles that other valuers use to value public housing or HDB flats. So, when your residents apply for loans, they get the valuation. That is what the valuer does – determine the value of HDB flats. There is such a thing as the value of public housing and public housing land and it can be ascertained. Relevant to this topic raised by Mr Giam are the recent comments made by Mr Leong Mun Wai in the public domain, where he said that state land sold to HDB should instead be valued at the historical cost of acquisition rather than on professional valuation principles which I have just articulated. He argues that by doing so, HDB flats can be made even cheaper than they are. I will leave the point about HDB home pricing and affordability for the debate that we will all be having soon. But we will deal with the point about valuation of land for public housing today. Let me take a bit of time to explain to fellow Singaporeans and Members of this House why Mr Leong's proposal to value state land meant for HDB at historical cost cannot work. First, land has value. Professional valuers in the private sector will tell us that. And actually, all of us intrinsically understand this. So, when Mr Leong calls for land to be sold at historical cost, he is overturning this fundamental point that land has value.”
“Mr Speaker, the Member asks what differential is applied by the Chief Valuer to land use for HDB, compared to private housing. He goes on to ask whether the private housing land use comparables that are used to value land for HDB BTO flats are based on records of the last transacted private residential land sold by the Government and private parties. Let me explain. The land sold to the private sector for private housing development is typically done by open tender through the Government Land Sales, or GLS, programme. The value of the land is determined through price discovery as developers bid for the land. On the other hand, sale of state land to HDB for public housing developments does not fall under GLS. Instead, the fair market value that HDB must pay for the purchase of state land for public housing is independently determined by the Chief Valuer using well accepted and established valuation principles. Transactions pertaining to land sold for private housing developments are not used to value the land sold to HDB for public housing developments. Instead, the Chief Valuer considers relevant public housing transactions and the specific parameters of the site. On the differential, which is also the Member's question, HDB has publicly stated that the land premium paid for public housing land parcels is lower than the premiums for equivalent land used for private housing, as observed from the returns of successful tender bids by private developers through GLS. This is in part because of the greater restrictions that apply to public housing such as buyers' citizenship status, minimum occupation period, income ceiling, non-ownership of private properties and so on.”
“The Member has asked for the same figures from 2010 to 2022 in a separate Parliamentary Question and we have provided the Central Provident Fund (CPF) housing grants given out for new Housing and Development Board (HDB) flats and the number of flats that commenced development in each Financial Year from 2010 to 2021. To provide guidance to prospective flat buyers, HDB currently provides broad information on upcoming Build-To-Order (BTO) launches in the HDB Flat Portal. To retain flexibility in BTO supply planning, we do not provide estimates beyond this timeframe, as sites are subject to further staging and review, for instance, there could be development constraints, such as delays to vacating interim uses and the need for environmental or heritage studies at some planned sites. The Government has kept BTOs affordable for flat buyers. First-time home buyers generally can service their mortgage payments fully using their CPF contributions with little or no cash outlay, and home price to income (HPI) ratios are generally around four to five. This is compared to international mortgage servicing ratio (MSR) benchmarks of 30% to 35%, and HPIs of global cities which range from eight to over 20. We will continue to ensure public housing is affordable to Singaporeans.”
“Table 1 shows the Central Provident Fund (CPF) housing grants given out for new HDB flats and the number of flats that commenced development in each Financial Year from 2010 to 2021. The Government has kept BTOs affordable for flat buyers. First-time homebuyers generally can service their mortgage payments fully using their CPF contributions with little or no cash outlay, and home price to income (HPI) ratios are generally around four to five. This is compared to international mortgage servicing ratio (MSR) benchmarks of 30% to 35%, and HPIs of global cities which range from eight to over 20. We will continue to ensure public housing is affordable to Singaporeans.”
“In pricing new Build-To-Order (BTO) flats, the Housing and Development Board (HDB)'s overriding aim is to ensure public housing remains affordable to help a broad segment of Singaporeans own their own homes. Therefore, HDB applies a significant subsidy to the assessed market values of new flats. The market subsidies are not directly comparable across projects, launches and years, as they depend on prevailing market conditions, attributes of the BTO projects offered, and the prevailing household incomes. In recent years, we have increased the market subsidies so that BTO flats remain affordable, and home buyers are protected from price fluctuations under different market conditions. For instance, the average price of a 4-room BTO flat in a non-mature estate was $341,000 in 2019 and $342,000 in 2022, even as the Resale Price Index rose by 28% over the same period. HDB also publishes the recent transacted prices of comparable resale flats alongside the BTO flat prices. Please find the link to this information for the November 2022 sales exercise at https://go.gov.sg/nov2022-bto-flat-supply-and-pricing-details. The difference in prices between the comparable resale flats and subsidised flats broadly reflects the market subsidies provided for the new flats, after accounting for differences in attributes. It is clear that there is a significant difference between HDB BTO flat prices and comparable resale flat prices. The difference in these price ranges also explains why BTO flats are highly popular and usually over-subscribed. On top of the market subsidy applied, HDB provides the Enhanced CPF Housing Grant of up to $80,000 to help eligible flat buyers achieve their home ownership aspirations.”
“The (i) number of first-timer families who bought a resale Housing and Development Board (HDB) flat, (ii) household incomes and (iii) house price-to-income (HPI) ratio for these families, from 2018 to 2022, are in Tables 1A and 1B. Over the past two years, there has been upward momentum in HDB resale prices, reflecting a broad-based increase in public housing demand. To moderate demand in the HDB resale market, we introduced cooling measures in December 2021 and September 2022. The Government remains committed to keep public housing inclusive, affordable, and accessible to Singaporeans. We will continue to monitor the property market and are prepared to make further moves, if needed, to ensure a stable and sustainable property market.”
“The Housing and Development Board (HDB) flat owners must be either Singapore Citizens (SCs) or Singapore Permanent Residents (SPRs) and the occupiers must be the owners' family members or relatives. Tenants who rent a flat/bedroom from existing flat owners must meet the prevailing eligibility conditions. As at November 2022, based on HDB's records, there are about 2.84 million Singapore residents and their family members living in HDB flats. About 360,000 non-citizen tenants are renting flats/bedrooms from HDB flat owners on the open market.”
“We are mindful that residents are concerned about the structural soundproofing qualities of their units. As such, acoustic insulation and performance of soundproofing are carefully considered when designing and developing Build-To-Order (BTO) flats. The Housing and Development Board (HDB) uses drywalls for internal partitions which are of Severe-Duty grade, with a Sound Transmission Class (STC) of at least 45, which is above the STC of about 40, considered as suitable for residential units. Hence, all HDB flats meet the required quality and acoustic insulation and performance.”
“To ensure that the Housing and Development Board (HDB) flats are affordable for first-timer buyers, the Government provides significant housing grants of up to $80,000 for new flat buyers and up to $160,000 for resale flat buyers, with more help given to lower-income buyers. We last enhanced our grants in 2019 and review them regularly to ensure that flats remain affordable. The 25th percentile, median and 75th percentile of housing grants provided to first-timer families for their purchases of Build-To-Order (BTO) flats and resale flats between 2018 and 2022 are shown in Tables 1 and 2 respectively.”