Khaw Boon Wan
Singapore
“Motor vehicle dealerships and showrooms have been closed since the start of the circuit breaker. As COE bidding is done mostly by the motor vehicle dealers on behalf of prospective owners, the Land Transport Authority (LTA) suspended COE bidding for the months of April and May.”
“Though stressed by the financial pain, they press on with the immediate priority of fighting the virus and supporting essential services. Post-pandemic, we will see how public transport evolves. Will demand for public transport services simply return to the pre-pandemic level?”
“Under our rail financing framework, the Government fully pays for the cost of building new rail lines. In other words, we do not recover the cost of building the Cross Island Line (CRL) from commuters through fares. The CRL project is being implemented and the final costs will depend on tender bids.”
“There are around 5,000 private bus operators with a combined fleet of 13,500 private buses. As we do not track the number of private bus trips and passengers, we do not have data on their carbon emissions.”
“There are nursing rooms at 50% of our bus interchanges. We will provide nursing rooms at all new bus interchanges and integrated transport hubs. For the MRT network, we will provide nursing rooms at all new interchange stations. We will also explore providing such facilities when MRT stations undergo upgrading.”
“Over the last three years, Singapore carriers have reported a total of 20 incidents of food allergies on board their flights. None required the use of epinephrine or emergency flight diversions.”
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“How valuers value properties is not secretive. As I have said, it is an established practice and there are tables which are published by valuers. If you are a valuer, you would know what to do. And the Singapore property market is a very mature, sophisticated market. We have leases of various lengths, various types, and transactions are going on all the time for decades, both in the public sector and in the private sector, whether it is en bloc in a private sector, or SERS or acquisitions and mergers by companies which involve properties. At every one of those transactions, there will be properties which are affected and have to be valued. And there are professionals who are being paid to do those computations properly. In the case of HDB, there is a due process too. If you do not like the value or you object to the value, you can appeal. And there will be an appeals board, which Page: 42 will be formed, again by experts who know the subject. They will see whether you have a case or you do not have a case. That is the way we have been doing it, and we have been doing it for decades, actually.”
“Madam, when I answered the Member Ms Foo Mee Har's question just now, I simplified the explanation because it is highly technical. I try not to go into these technicalities, but I may have to do so now. The earlier example mentioned by Ms Foo Mee Har is that your property today still has 70 years of lease, but you decide to take half – 35 years. And so, you sell the tail-end 35 years. If it is a straight-line depreciation, it would be a 50-50 split. But I said no, because time-value-for-money and so on, it is actually about 60-40. It is not actually 60-40; if it is straight computation, it is 75-25. The tail-half of your lease is a lot less than the front-end of the lease which you are retaining. If you work on that basis, the cash proceeds under LBS will be much less than what we are offering today. That is why HDB, quite rightly, introduced some conditions which are also practical conditions – you cannot sell, you cannot wholly sublet although you can sublet some rooms if you want to. And because of those restrictions, when valuers value the front-end of the lease to be retained, they take that into account and discount it. That is why instead of a 75-25 split, it ends up with a 60-40 split. So, 25 to 40 is a very significant improvement in the value which is now being sold back to HDB. That enables the LBS to be a lot more attractive and to be a lot more meaningful to the owners.”
“If they have spare bedrooms, they can sublet them after taking up the Lease Buyback Scheme (LBS). Those who wish to move out and sell, or sublet their whole flat can already do so without the LBS. We do not have plans to relax the minimum occupation period which is applied to the purchase of all Housing and Development Board (HDB) flats.”
“There can be lease extension. It is something for which we can take the cue from the Studio Apartment scheme. Studio Apartments are placed on a 30-year lease. HDB made a commitment for such an extension, if you outlive the 30-year lease. This is possible because many Studio Apartment buyers come in at younger ages, at 55 years. HDB commits to a 10-year extension at market value. The quantum depends on what is the prevailing market value. We can take the cue from the provisions under the Studio Apartment scheme. For SERS and the Member's comment on what happens if the value of the outstanding lease is less than the assessed value of the flat at the point of the SERS announcement. Let us say, you are now on LBS, and you have committed to 30 years. You have lived 10 years in it, another 20 years left to go and suddenly, there is a SERS announcement. As I have said, the HDB will assess. We will compensate you fairly. If you are in a sold flat, we will assess what is the market value of your flat at the time of the SERS announcement, and we will compensate you and also offer you some re-housing benefits. That is for sold flats. Likewise, if you happen to be on the LBS, we will also assess what is the market value of your LBS flat at that point in time, and then, we will compensate you accordingly. In fact, because you are already on LBS and your retained lease has already been assessed a few years before when you joined LBS, HDB's arrangement is that should the remaining value of your lease be less than the market value of your property at the time of the SERS announcement, we will offer an ex gratia to top up. We are a very fair organisation.”
“For those who are very concerned about this, we now have this enhancement of an additional five years lease extension, so that instead of 30 years, you can opt for 35 years, which, as I have said, will cover up to age 100. There is another possibility which we are studying – insurance. There are market solutions to such things. You can buy an insurance policy, so that if you outlive the committed lease, the insurer will take over to make sure that you will continue to be able to stay there and pay for your additional lease. But insurance cuts both ways. If you pass on before the committed lease, then you also lose the benefits. Whereas right now, under our LBS, whatever is not consumed will be refunded to the estate. So, the insurance scheme is not so straightforward. The upside is clear for a very small minority of the beneficiaries of the scheme, but the downside can be very negative for the majority and they may not like it.”
“On the second question, on SERS re-housing benefits, yes, it will be taken into account in the offered re-housing flat. And depending on the length of the lease, it will be valued as such. At the Ministry of National Development (MND) and HDB, we are not only a compassionate organisation, we are also a very fair organisation. Our Page: 39 commitment is that nobody will be left homeless. If somebody is now 100 years old, I am quite sure the whole society and the Government will try very hard to ensure that this 100-year-old or 101-year-old elderly Singaporean will be well taken care of. The case-by-case situation crops up because what is unpredictable or uncertain is the health status of the person. At that point in time, if he or she is not independent, let us say, bedridden, then his or her need may not be a flat. His or her need is a place in a nursing home, in which case, therefore, the Government, as represented by HDB, will work very closely with the Ministry of Health (MOH) to make sure that this elderly Singaporean will be well placed. The option then depends on whether the children are available and are they able to look after the now-no-longer independent senior. That is why the HDB commitment is worded that way. The Member's suggestion of whether we can commit to a specific value to the lease – in this case, to be applied in 35 years' or 30 years' time – is very difficult. We are committing ourselves to something that is so uncertain. I cannot even tell next year what exactly would be the state of the property market. I have some idea, I have some goal to work towards, but it may not be what I project or plan for it to be. What we can commit as a Government is that nobody will be left homeless.”
“Under the current Lease Buyback Scheme (LBS), owners retain a 30-year lease. Those who outlive the lease will not be left homeless. The Housing and Development Board (HDB) will look into the circumstances of each case to work out an appropriate housing arrangement, taking into account the elderly's health condition, financial status and the availability of family support. From April next year, we will enhance the LBS to offer a 35-year lease option. So, this will Page: 38 practically bring the age limit to about 100. Those who are concerned about outliving their lease can take up this longer lease option. Any unconsumed lease will be refunded to the estate. LBS flat owners whose flats are selected for the Selective En bloc Redevelopment Scheme (SERS) will receive compensation based on the balance lease of their flat at the time of the SERS announcement. They will also receive SERS re-housing benefits, which include an option to buy a new replacement flat with the same balance lease as their LBS flat, or a fresh 99-year lease, at a subsidised price. Owners can retain LBS proceeds of up to $100,000 in lump-sum cash, after they have topped up their Central Provident Fund (CPF) Retirement Accounts. Currently, all owners top up to the age-adjusted prevailing CPF Minimum Sum (MS). From April next year, we are relaxing the CPF top-up requirement for households with two or more owners to require each owner to only top up to half the age-adjusted prevailing MS. They can then retain any remaining proceeds in lump-sum cash.”
“That is a fine print, a technical requirement in the scheme. In fact, it has no practical value at this point in time because all properties can meet this requirement because there is still substantial outstanding lease. But it is an important technical requirement of the scheme because we also want to make sure that the LBS proceeds would be of some significant value. As we have just discussed, if the outstanding lease is too short, the value is so little that when you convert into annuity or into upfront cash proceeds, it may not be too meaningful for the owner.”
“I should not overplay my role. I am not a financial planner. Let us say we are at the high end of the property cycle, as I have said, it impacts all the various monetisation options. If you sell today to right size, and because you are at the height of the property cycle, you can sell high. It also means that when you buy your Studio Apartment, it will also be priced high. Page: 37 So, likewise, for LBS, if it is at the height of the property cycle, then the lease that you will be retaining will also be priced high. Likewise, the tail end of the lease. So, 60-40 share of "X" which will be large as compared to "Y", let us say, when it is at the low end of the property market. So, it will be a 60-40 share of "X" versus a 60-40 share of "Y". It is very hard to play the market, to be able to judge the timing when "Yes, you find the exact sweet spot to make a decision". When you consider all the various options, think it carefully. The best outcome, as I have said before, is that you do not have to monetise it through Lease Buyback. The best outcome that we prefer is that your children are good and they ask you to stay with them so that you can rent out your flat which you continue to own, and every month collect a monthly rental. That, I think is the best outcome for the family, for the children, for the parents and for society at large. Er Dr Lee Bee Wah (Nee Soon): I would like to ask the Minister why is there a requirement that the minimum lease to be sold to HDB must be 20 years. Does it mean that for those who want to sell a lease of 18 years or 19 years, they would have to make an appeal?”
“The key is to make sure that there is proper counselling so that the owner or the potential participant in the Lease Buyback Scheme, or any other monetisation options, is fully aware of the various options and, specifically, how it would impact him or her so that he or she can then make a very informed, careful decision. He or she should not rush into deciding on whether right-sizing is the right option or the Lease Buyback Scheme is the right option. Think it carefully, discuss with your financial planner or your Member of Parliament, and seek proper expert advice and then make a careful decision because this is a long-term decision, whether you decide to opt for 30 years or 35 years. Not as long as a marriage, but same thing too when you decide on your mate, think carefully, otherwise you may regret halfway through the process.”
“Madam, first of all, assessing property value is a professional piece of work. As for how property values vary across the lifespan of a property, there are established ways of doing that kind of computation. It is certainly not a straight line. Using the example that the Member quoted, it does not mean that the value of the first "X" years of a lease to be retained will equal that of the tail end of the lease that the owner is selling to HDB. It is not a straight line. In fact, it tends to be an inverted "C". There are two reasons Page: 36 for it. One is time value for money. A thousand dollars today is worth more than $1,000 in 35 years' time. Secondly, properties with very short outstanding lease tend to depreciate faster than properties still with very long lease. So, the end result is, if I may use the example the Member gave, the valuers are likely to value the first part of the lease which will be retained by the owner at about 60%. So, instead of a 50-50 split of the full value of the lease, it will be roughly a 60-40 split. In other words, the lease that they are selling is probably worth about 40% of the market value of the entire lease today. How do we handle volatility? We have yet to find a way to eliminate volatility in property prices. At my age, I have lived through several property ups and downs. And I can guarantee you over the next 30 years, there will still be many property up-and-down cycles. At whichever time of the property cycle, it will affect all the monetisation options, whether it is lease buyback or right-sizing or sell your property to move to a Studio Apartment, all will be impacted.”
“Madam, the Lease Buyback Scheme (LBS) proceeds is the market value of the flat with its full remaining lease, less the value of the first "X" years of lease retained by the household and any outstanding housing loan. So, there are two components. First, what is the market value of the flat with its full remaining lease; and secondly, how many years of lease that the owner would like to retain and what is the value of that portion of the retained lease? First, a professional valuer from the Housing Development Board (HDB)'s Panel of Private Valuers will assess the market value of the flat with its full remaining lease after a physical inspection of the flat and then refer to recent comparable market transactions. Second, the value of the lease to be retained by the owners is, in turn, determined from the market value of the flat based on established industry-accepted standards and valuation practice. Adjustments are also made to reflect the restrictions placed on the LBS flat, namely no subletting of whole flat and no resale.”
“There are around 5,200 private buses in Singapore. They make up about 15% of all heavy vehicles but occupy 37% of all public heavy vehicle parking lots. It will not be fair to accord private buses further priority ahead of other heavy vehicles. Nevertheless, LTA and URA are working with MOE to study if more school buses can be parked overnight within school premises.”
“Within the Nee Soon GRC, there are nine public heavy vehicle parks which provide 1,100 season parking lots. These parking lots are fully subscribed. There are currently 360 applicants on the waitlist for a parking lot. The waiting times have ranged from three to eight months. We appreciate that drivers would like to park their heavy vehicles near where they live. However, there are practical difficulties in providing heavy vehicle parks near residential estates. Many residents have complained about noise and raised safety concerns of heavy vehicle parking. LTA requires every heavy vehicle to have a specific parking lot before a licence is issued. There are ample heavy vehicle parking lots island-wide and most employers are required to have their drivers park their vehicles in industrial areas and to make transport arrangements for them. Nevertheless, agencies will continue to explore ways to provide heavy vehicle parks where land is available. In the north, URA is expanding the Sembawang Drive heavy vehicle park to provide an additional 120 lots. The Government has just released three industrial sale sites in Woodlands where developers are required to provide 357 heavy vehicle lots in total.”
“Madam, I thank the Member for the suggestion. As we know, our seniors have a wide range of needs and that is why when we formulate monetisation options, we try to provide as many options as we can so that the seniors can choose the type of option that best suits them. That is why we have held, and continue to hold, focus group discussions, talking to the targeted beneficiaries about their preferred monetisation schemes. Indeed, they have raised several suggestions, one of which is like what the Member has raised, and we will continue to study them.”
“Madam, there are about 367,000 households with at least one Singaporean flat owner aged 55 years old and above living in 3-room, 4-room and 5-room flats. Of these households, 32% are 3-room flats, 44% are 4-room flats, and 24% are 5-room flats. As we do not require the flat owners to update their income, HDB does not have the income information requested by the Member. Since we enhanced the Lease Buyback Scheme in February last year, 326 households have joined the scheme.”
“In the last 10 years, the number of HDB flats sold by Singapore Permanent Resident (SPR) households in the resale market each year was between 2,300 and 3,500 units. There are various measures in place to differentiate the treatment of Singapore Citizen (SC) and SPR households in our public housing policies. First, SPR households are not eligible to buy a subsidised new flat from HDB. Second, SPR households do not receive any housing grants when buying a resale HDB flat. Third, SPR households have to pay an Additional Buyer's Stamp Duty of 5% when they buy their first residential property. Fourth, SPR Page: 124 households have to wait three years from the date of obtaining their SPR status before they can buy a HDB resale flat. Fifth, SPR households cannot sublet their whole HDB flat and will need to sell their HDB flat within six months of buying a private residential property in Singapore. As there is already significant differentiation between SC and SPR households in our public housing policies today, we are not planning additional measures at this juncture.”
“They can apply to buy a Build-to-Order (BTO) flat from the Housing Development Board (HDB) with their parents. For those who wish to live on their own, HDB will, in exceptional circumstances, consider the appeal on a case-by-case basis.”
“The lifts installed in Housing and Development Board (HDB) blocks after 1997 come with vision panels and provision for the installation of lift surveillance systems. This includes both new lifts and replacement lifts under the HDB's Lift Upgrading Programme. For the other HDB lifts, it will be the responsibility of the Town Councils to replace them, using their Sinking Funds, when the lifts reach the end of their lifespan. Given the normal lifespan of 28 years, some of those built around 1987 will soon be due for replacement. When they do so, I will recommend that the Town Councils should include these enhanced features in the tender specifications. Their residents can then benefit from the better features found in newer lifts. Page: 119”
“We have completed the review of the Enhancement for Active Seniors (EASE) programme. As from 1 August 2014, we have lowered the age criterion for EASE from 70 years old to 65 years old. For those who require assistance in daily living, we have further lowered the age criterion to 60 to 64 years old. The change in age criterion will allow an additional 100,000 households to benefit from EASE. Page: 117 In addition, we have extended the scope of works to cover a second toilet within the flat. So, if seniors opt for it, the Housing and Development Board (HDB) will carry out slip-resistant treatment to the floor tiles and install grab bars for their second toilet. For families with special needs members who do not meet the age criterion, HDB will consider their requests and approve them if the needs are justified.”
“Such children are allowed to take a second Housing and Development Board concessionary loan, should they decide to buy their own flat. Page: 107”
“Unmarried parents with children can apply to buy a Build-to-Order (BTO) flat from the Housing and Development Board (HDB) with their parents. Should they wish to live on their own, they can buy a HDB resale flat from the open market and receive a housing grant for their purchase, if they are aged 35 or older. Alternatively, they can also apply to buy a 2-room BTO flat in a non-mature estate from HDB.”
“The Land Transport Authority requires that owners of heavy vehicles must secure a parking lot before their heavy vehicles can be registered. Currently, 41,600 licensed heavy vehicle parking lots are available, more than the 34,600 heavy vehicles on the register. Of all the parking lots, 31,200 are provided by the private sector. URA and HDB provide the remaining 10,400 lots. Of all the private parking lots, 4,400 are located in the Central Region, 3,700 in the East Region, 2,000 in the North East Region, 6,400 in the North Region and 14,700 in the West Region. The average monthly season charge for each private lot is around $275. Of all the public parking lots, 1,950 are located in the Central Region, 1,250 in the East Region, 1,750 in the North East Region, 2,200 in the North Region and 3,250 in the West Region. The average monthly season charge for each public lot is $130. Demand for the public heavy vehicle parks near housing estates is high, as drivers prefer to park near where they live and they are also cheaper. There is a waitlist at public heavy vehicle parks of 700 in the Central Region, 300 in the East Region, 400 in the North East Region, 1,150 in the North Region and 1,350 in the West Region. There are, however, practical difficulties in providing more parking lots in residential estates. Most residents do not welcome them, given noise and safety concerns. It is the responsibility of the business owners to ensure that their heavy vehicle drivers have appropriate transportation arrangements between the designated parking lots and the drivers' homes. Page: 101”
“Madam, as a former dengue patient, I note the theoretical risk, that should I, bad luck, be struck again with a different strain, there is a raised risk of complications. So, please keep Singapore mosquito-free. Madam, the property market cooling measures are intended to keep our housing market stable and sustainable. They aim to encourage financial prudence among home-buyers and moderate property prices. Various concessions are already in place to benefit upgraders. For example, Singaporean married couples can enjoy a refund on Additional Buyer's Stamp Duty if they sell their existing home within a stipulated period after the purchase of their second home. Similarly, an upgrader may qualify for the highest Loan-To-Value limit of 80% on his second loan if he is able to provide documents to his bank to show that he will be selling his existing home. This enables him to be treated as a borrower with no outstanding housing loans. The existing concessions are reasonable and sufficient. Any move to relax the cooling measures, including by broadening these concessions, is premature under current market conditions. Such a move could lead to an upswing in demand, which would increase the number of transactions and raise housing prices. This would not be welcome to Singaporean home-buyers, particularly those with aspirations to upgrade. 2.58 pm”
“Permanent Residents (PRs) can apply to withdraw their CPF monies only after they have ceased to be PRs. They will then be required to dispose of any landed residential property on mainland Singapore, or any HDB flat, if they own such properties. If they own any private apartment or condominium, they are not required to sell these properties, as foreigners are currently allowed to own private non-landed residential properties.”
“There were 402 pieces of written feedback received on the Draft Master Plan 2013 during the exhibition period between 20 November to 19 December 2013. Most of the feedback pertained to housing and transport issues, while some were on issues such as economy, heritage, recreation and public spaces. The remaining feedback comprised compliments, general enquiries and requests for information. Overall, the feedback welcomed proposals to make Singapore a more liveable, endearing and sustainable home. These included proposals for more community, healthcare and commercial amenities, more parks and greenery, cycling and walking initiatives, identity nodes, and new residential areas and regional centres. As for the feedback on local concerns, such as traffic congestion and lack of amenities, URA will work with other agencies to address them. URA has studied and considered all feedback. Where feasible, these were incorporated into the plans. We conducted one hearing where the feedback raised new matters which were substantive, which we required further clarifications on and which pertained to a new proposal in the Master Plan. With the gazette of the Master Plan, the Draft Master Plan process has been completed.”
“(a) There are 10 first-timer families who have recently chalked up three or more unsuccessful attempts for BTO flats in the non-mature estates. (b) Of the 200 families identified in July 2013, 60 have since been invited to select a new HDB flat, and another 10 have decided to buy a resale flat, Executive Condominium or Design, Build and Sell Scheme flat. (c) The remaining 130 have not participated in any HDB sales exercise since July 2013. Some might have gone on to buy a private property. Others may be waiting for another BTO opportunity. (d) With the significant ramp-up in new flat supply, we have cleared the backlog of first-timer applicants. We will continue to monitor the supply and demand situation and intervene when necessary.”
“The Ministry of National Defence (MND) is organising a series of Housing Conversations to engage Singaporeans on what more we can do to help extended families live close by. One question we asked participants was whether we should give absolute priority to those who wish to live closer to their parents. Although most participants wanted to live near their parents, responses to the idea of absolute priority were mixed. Some participants supported it, while some felt that this would give rise to the "alumni effect", which is unfair to those who do not have parents already living in their preferred estates. To strike a balance between encouraging extended families to live close by and keeping opportunities open to those who do not have parents already living in their preferred estates, one suggestion raised at the Housing Conversations was to set a quota, rather than give absolute priority. This is similar in concept to what we do under the Parenthood Priority Scheme. It is a balanced approach, which MND is studying. Page: 123”
“After ramping up our Build-to-Order (BTO) building programme for three years, we have cleared the backlog of first-timer applicants. As more resale flats were transacted at below valuation, we expect more buyers to return to the Housing and Development Board (HDB) resale market instead of relying on the BTO programme. That is why, last year, I signalled a need to adjust the HDB building programme to a more sustainable level. For this year, we have decided to offer 22,400 BTO flats. Three-room Page: 122 and larger BTO flats will number 16,700 units, more than the estimated 15,000 new Singaporean family formations annually. Two-room flats and Studio Apartments will number 5,000 units and 700 units respectively, to cater to demand from low-income families, singles and the elderly. As we have already launched 9,700 flats, another 12,700 flats shall be launched in the next six months. HDB will also conduct a second Sale of Balance Flats Exercise later this year to augment the BTO supply. As for next year's building programme, we will monitor the BTO application rates closely and decide on the BTO supply in due course. I expect the number to be lower than this year's supply.”
“Third, all Japanese food imports will continue to be subjected to these AVA's measures: (a) All food consignments must be accompanied by a certificate of origin (COO) to show the prefecture of origin of the food; (b) Prefectures close to Fukushima (Ibaraki, Tochigi, Gunma and so on) have to show evidence from its surveillance that the products are free from radioactive contaminants; and (c) Fukushima prefecture has to show evidence from surveillance testing that the production areas of food for export to Singapore are free from radioactive contaminants. AVA will continue to closely monitor food imports from Japan and carry out surveillance testing to ensure that they comply with our food safety requirements.”
“Food hygiene and food safety are the key considerations in our policies governing food imports. Our objective is to ensure that food is safe for Singaporeans to eat. We will never compromise on this objective. Following the 2011 Fukushima nuclear power plant incident, the Agri-Food and Veterinary Authority (AVA) implemented a series of import control measures and surveillance testing on Japanese food imports. Since January 2013, AVA has not detected any radioactive contamination in its testing of samples of Japanese imported food. AVA's test results have been corroborated by tests conducted by Japan. There are also no recent reports by other countries of any significant radioactive contamination in their Japanese food imports. Page: 143 In March 2014, AVA conducted an on-site inspection in Japan to review its food safety system. AVA is satisfied that Japan has implemented measures to mitigate the risk of radioactive contamination in food products. Examples include the extensive inspection and testing system for food before distribution to consumers or for export, and decontaminating the soil in agriculture land. Based on its inspections of the nuclear power plant in Fukushima conducted in 2013, the International Atomic Energy Agency (IAEA) is of the view that the food supply chain in Japan is safely under control. Hence, AVA decided to ease some of its restrictions on imports from Japan. However, some restrictions will remain. First, we will continue to ban imports of seafood and forest products from Fukushima. Second, we will also continue to ban food products from the highly contaminated areas, including the 20-km radius zone around the Fukushima nuclear power plant.”
“A developer which obtained a Qualifying Certificate (QC) to develop a residential site must sell all units in the development within two years of obtaining Temporary Occupation Permit (TOP). If the developer fails to meet this disposal requirement, it must pay a fee to extend the deadline. As at May 2014, 5,339 units from 32 private residential developments had a disposal deadline falling within the two-year period between May 2014 and May 2016. Of these, 791 units, or 15%, remain unsold. Between 2012 and May 2014, there were no private residential units developed by QC holders which were approved for conversion into serviced apartments.”
“As at 31 May 2014, 779 Executive Condominium (EC) units had been launched and remained unsold. In the next 18 months, about 6,800 EC units are expected to be launched. Page: 142”
“Disagreements between HDB residents arising from anti-social behaviour are generally private disputes. Our approach has been to encourage them to resolve the disputes amicably amongst themselves. Where residents surface their case to HDB for assistance, HDB will work with the grassroots leaders and community partners to advise the neighbours to be considerate and to cease the anti-social behaviour. For disputes that remain unresolved, the neighbours can seek mediation from the Community Mediation Centre. HDB can take action against residents only if they have caused a public nuisance to other residents. In extremis, HDB may consider compulsory acquisition of the flat or imposing a penalty in lieu of compulsory acquisition. However, this is drastic and should only be used as a last resort. HDB will continue to promote gracious and harmonious living through community bonding programmes like the Good Neighbours Movement and the Heartland Ambassador Programme. It also organises regular exhibitions and roadshows to educate residents on good neighbourliness. In addition, HDB is assisting an inter-agency committee led by MCCY which has been looking into strengthening the mechanisms across Government agencies to address such disputes arising from anti-social behaviour.”
“Town Councils are responsible for the management and maintenance of common property in HDB estates. These include residential and commercial properties. Residential properties comprise HDB residential blocks. Commercial properties comprise HDB shops, markets and food centres. Under the Town Councils Act, Town Councils are legally required to establish and maintain separate sinking funds for improvements to and the management and maintenance of residential property and of commercial property. This ensures separate accountability for the respective property types and safeguards the sinking funds for their earmarked uses. For this reason, we are unable to allow sinking fund that has been set aside Page: 133 for commercial property to be used for residential property.”
“Since its implementation in February 2013, 80 households have received the Silver Housing Bonus of up to $20,000 in cash, when they moved to a smaller flat and topped up their CPF Retirement Accounts. Of the 120 seniors in these households, 110 met their cohort Minimum Sum after the top-up. Since the Lease Buyback Scheme was enhanced in February 2013, 312 households have benefited by selling their tail-end lease to HDB for net proceeds to top up their CPF Retirement Accounts. Of the 412 seniors in these households, 399 met their cohort Minimum Sum after the top-up. Both schemes are helpful for seniors who wish to tap on their HDB flat to enhance their retirement income. We will continue to reach out to seniors so that they know about these options.”
“Madam, we are reviewing. The Member knows I am a fast worker. [Laughter]. Assoc Prof Fatimah Lateef (Marine Parade): Madam, I would like to ask the Minister, since he is reviewing the NRP programme, can he also review the cost cap for each precinct? With the rising cost of construction and building today, we have had occasions when the NRP actually has to be re-tendered because of bursting the budget.”
“Madam, the Neighbourhood Renewal Programme (NRP) was introduced in 2007 – that was seven years ago – to enhance selected HDB precincts at the block and the neighbourhood level, for the benefit of the residents. These include physical improvements, such as drop-off porches and communal facilities like precinct pavilions. As older towns have a greater need for such upgrading, we give priority to those built before December 1989. Those which have already undergone the Main Upgrading Programme (MUP), Interim Upgrading Programme (IUP) or IUP Plus are also excluded from the NRP. Based on this set of criteria, 187,000 flats are eligible for NRP. Of these, 100 NRP projects have been selected so far. When completed, these projects will benefit residents in 140,000 flats, or 75% of the eligible flats. So, we are at the third-quarter mark. Our residents have responded to NRP positively. Many participated actively in the consultation process, giving us useful ideas and suggestions on the improvements that can be made to their neighbourhood through the upgrading programme. We are very encouraged by their strong support. Now that we have crossed the three-quarter mark, it is timely to review the selection criteria. We understand that residents in blocks built just after 1989 may feel that their blocks are also ageing but they have just missed out on NRP and they wish that NRP can also be extended to them. I think this is understandable. So, we will review the selection criteria and see how the NRP can be extended also to blocks built in the early 1990s. If and when we do make such an extension, we will give priority to towns which have not benefited from MUP or IUP, like the one in the Member's constituency.”
“I suppose we should recover the grant from whoever receives the grant.”
“We will make sure that there is always a flat that you can afford, at least within your budget. We can say it with great confidence because we have two major levers: we control the construction programme; secondly, we set the price. So, do not worry. Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I would like to ask the Minister, for a couple who annul their marriage and they have to repay the Additional Housing Grant (AHG), is it true that if the couple consists of one Singaporean and one PR, the AHG is recovered from the Singaporean? I have one case of a resident who is in this situation. And if it is so, what is the reason behind it? Page: 34”
“Madam, I think a penalty for cancellation of home purchase is a common industry practice. The only difference is in the quantum. I believe that in the private sector, if you cancel your plan to purchase a condo or house, they charge as much as 20%. In the case of HDB, it charges 5%, which I think is quite reasonable. How do we help isolated cases who are in such a situation? We do help because we take into account their situations. There are several ways – sometimes by cash instalments, or if they do not have enough savings in the CPF because they are young couples, they will in due course build up their CPF savings and we can allow future payment from their CPF. Those are some of the things that we do to help. Fortunately, the number of such cases is small. When I was looking at some of the data a few weeks ago, my sense is that in a hot market, like the last three years when property prices were going up, many couples were actually not ready for relationship but they decided to jump in, thinking that they might not be able to afford a flat when they eventually get married. But now that we have stabilised the market, we notice such data has been coming down. So, the trend is a good one. My advice to young couples is that, at your age, you have maybe 50, 60, 70 years ahead of you. I guarantee you there shall be many property bubbles and busts, but work on your relationship. So, hopefully, while there may be several property cycles, your relationship is always permanent. Like in my case, two weeks ago, my wife and I celebrated our 37th wedding anniversary. I think that is what couples should try to work at. Do not make a decision about whether to jump in for your BTO, thinking that you may not be able to afford a flat.”
“Madam, the additional CPF Housing Grant (AHG) is to help eligible first-timers buy their first flat. And that is why if the couple does not eventually buy the flat, they will have to return the grant to the Government. The individuals can subsequently apply for the grant again with their new partner for their next flat purchase, subject, of course, to the prevailing eligibility conditions.”
“All HDB towns will have extensive pedestrian and cycling paths. We will build intra-town cycling paths across HDB towns and also new and upgraded cycling routes. We will also introduce fence-less and car-less concepts at Marina South, Kampong Bugis and the Civic District. To reduce the need to travel, we will bring more jobs to residential areas, such Page: 50 as in Punggol and the Woodlands Regional Centre. We will support R&D of new technologies pertinent to sustainable development. Research and innovation can help to overcome today's limitations as well as offer us long-term solutions. We will raise construction productivity and push for more sustainable construction processes. This will ensure a more efficient use of limited manpower and enhance the supply resilience for construction materials. We will also develop technologies and plans to increase our land capacity through more underground and mixed-use developments. We will increase the productivity of our local farmers and strengthen food security so that Singaporeans continue to enjoy a stable and safe food supply. Next year, Singapore will celebrate 50 years of nation-building. We have come a long way together and have made tremendous progress. And we will continue to thrive and grow as a nation, to transform Singapore and make it a city of opportunities and an endearing home for all Singaporeans, always. This is a vision that our Pioneer Generation held firmly to as they steered Singapore through the last 50 years; this must be our vision, too, as we chart the future together as one people. Page: 51”
“We will work closely with animal welfare groups, the pet industry and the community to ensure responsible pet ownership and animal welfare. Such ground-up efforts will strengthen community harmony and enhance our sense of identity and belonging to Singapore. We will pursue our vision to make Singapore an outstanding City in a Garden that Singaporeans are proud of and passionate about. As we review the Sustainable Singapore Blueprint, we will reaffirm our commitment to develop a highly liveable, green and sustainable Singapore. We will leverage on technology to develop SMART HDB towns, to meet the varied needs of a maturing society of many ages. Since 2012, we have been test-bedding innovative urban solutions in energy, water and waste management technologies in Punggol, Singapore's first Eco-town. With SMART technology, our towns can be even more liveable, efficient, sustainable and safe for our residents. Greenery will be made even more accessible to Singaporeans. We are expanding the park connector network, and building the Round-Island Route, a 150km continuous recreational corridor connecting Singaporeans to parks and places of interest across the island. Public housing estates will be planned and designed with more greenery and enhanced access to parks. We will find new and innovative ways to make greenery more pervasive in urban areas and developments, such as the 24km Rail Corridor, and the new initiatives under the Landscape for Urban Spaces and High-rises (LUSH) programme. Our target is for 90% of Singaporeans to live within 400 metres of a park. To conserve our rich biodiversity, we will dedicate 9% of our land for parks and nature reserves. We commit to make public transport, cycling and walking choice modes of travel for Singaporeans.”
“The Home Improvement Programme (HIP) refreshes older HDB estates and has covered one-third of all eligible flats. We will step it up to cover another one-third, or 100,000 flats, within the next three years. A home is more than just a shelter. It is a special place where the heart resides, upon which we build our hopes and dreams, and where we share our lives with our families, our neighbours and our community. We will actively promote harmonious HDB living through well-designed community spaces in both new and existing towns. We will inject vibrancy and foster greater cohesiveness in existing towns under the Remaking Our Heartland initiative. In HDB estates, we are creating and integrating spaces such as parks, sports and recreational facilities. For instance, we plan to integrate a library and sports facilities within Page: 49 a bigger Toa Payoh Town Park. We will provide space for social and community needs, and we will engage residents in energising these spaces, such as the Town Plazas that are coming up in Bedok and Punggol. We will support citizen-led initiatives that catalyse social interaction, so that ground-up community bonding can take root and flourish. Where there is opportunity, we will conserve buildings and special places with historical and architectural significance as well as strong social memories, so as to preserve the charm and character of old Singapore, and serve as anchors of our identity and markers of Singapore's progress over the years. Community engagement efforts will extend beyond HDB heartlands. For example, we will seek ideas from the community on how we can sensitively enhance the natural environment and biodiversity of Pulau Ubin and protect its heritage and rustic charm.”
“Our goal is to house all Singaporeans in affordable and quality homes, nurture cohesive and vibrant communities, and create a thriving green living environment. We commit to house all Singaporeans and to help them own their homes. Our housing policies will advance important social objectives of supporting the family, uplifting the low-income and vulnerable, and helping the elderly age in place. Our efforts to address a temporary imbalance in supply and demand are showing results – home prices have started softening. We will ensure that housing remains affordable, so that young couples can own their homes and start a family as soon as possible. We will strengthen bonds within extended families, by helping couples and their parents live together, or close by, so they can care for each other and render mutual support. The family is and must always be the bedrock of Singapore's society. We want to progress together as an inclusive caring society. We will help our low-income and vulnerable Singaporeans level up and own a flat, so that they too can have the security of a home and an asset. We will work closely with social agencies to support job upgrading for them and to provide opportunities in education for their children. We will build more rental housing, and integrate them with sold flats in HDB estates. We will support the elderly so that they can enjoy the fruits of their labour and retire comfortably. We will enhance options for them, if they so wish, to unlock the value in their housing asset. We will facilitate ageing-in-place by making HDB homes and estates elderly-friendly, and by enhancing them with more amenities to make them safe and conducive for healthy and active ageing.”
“As at 31 March 2014, 708,363 HDB flats, or 81% of sold HDB flats, are covered by basic fire insurance offered by HDB's appointed insurer. HDB does not track the number of HDB flats covered by fire insurance offered by other insurers. The basic fire insurance premiums offered by HDB's appointed insurer are inexpensive. They range from $1.80 for a 1-room flat, to $8.77 for an Executive/Multi-Generation flat, for a five-year period. HDB appoints its insurer after an open tender. The premiums are hence very competitive. Flat owners should not have any difficulty getting coverage and are strongly advised to do so. HDB will continue to encourage home owners to take up home fire insurance policies.”
“Flat owners who bought a subsidised flat directly from the HDB or had taken a CPF Housing Grant for a resale flat are referred to as second-timers, and have to pay a resale levy when they buy a second subsidised flat. This is to reduce the second housing subsidy, and maintain a fair allocation of subsidies between first- and second-timers. The same treatment applies to second-timers who take over ownership of a subsidised flat by way of transfer, including inheritance upon demise of the former lessee. Second-timers who do not wish to pay the resale levy can consider options such as selling the flat in the open market or having other family members who are first-timers and eligible to take over the flat ownership. If the beneficiary needs the inherited flat for accommodation and has genuine difficulty paying the resale levy, HDB is prepared to assist based on the merits of the case. HDB conducts regular reviews of its policies to ensure that they remain relevant to changing ground situations. The issue raised by the Member is among those which will be looked at in its reviews.”
“In the past 24 months, HDB tendered out 11 eating houses. The successful tender bids ranged from $21,600 to $78,000 per month, or from $60 to $228 per square metre (psm) per month.”
“Madam, the Parenthood Provisional Housing Scheme (PPHS) provides an additional option for families to rent a flat from HDB while they wait for their new flat to be completed. In setting the rents, we consider various factors, such as the flat type and also the location. PPHS rents are 40% to 60% lower than market rents in the vicinity. The cost of providing PPHS flats includes the cost of retrofitting the flats before they are let out, and also the cost of managing and maintaining the flats. The number of applications per month peaked at 409 last September, but has since dropped to 81. More than 900 of the 1,150 PPHS flats have been taken up. There are some larger flats still available. We are considering allowing some couples to co-rent, in other words, to share, these larger flats.”