Sunday, August 24, 2008

Housing: S’poreans first, reiterates HDB

Source : Straits Times - 23 Aug 2008

I REFER to the letters, ‘Citizens may suffer as PRs buy up HDB Flats’ by Mr Chua Teck Kee (July 15) and ‘Home and Singapore from a PR’s viewpoint’ by Mr Amit Nagpal (July 25).

We wish to reiterate the principles underlying our public housing policy.

First, public housing in Singapore caters primarily to the housing needs of Singapore citizens and their families.

Second, the Government is committed to keeping public housing affordable, particularly for first-timers and the lower-income households.

Third, it does this by subsidising public housing, either directly by way of a grant to buy resale HDB flats or indirectly by pricing new HDB flats below their equivalent market values.

We recognise and value the contributions of Singapore Permanent Residents (SPRs). However, some benefits such as subsidised public housing are for Singapore citizens only. This differentiation between citizens and SPRs is necessary to safeguard the privileges of citizenship. Nonetheless, SPRs enjoy certain privileges such as being able to buy resale HDB flats in the open market, an option not available to foreigners.

Mr Chua was concerned that SPRs may be driving up prices of resale HDB flats, and suggested a separate quota for SPRs.

Prices of resale HDB flats are influenced by various factors, such as the supply and demand, pace of economic growth, and market sentiments.

In the last 18 months, prices of resale flats have risen in tandem with economic growth, reduced unemployment rate, and improved market sentiments. To meet the growing demand, HDB has stepped up its building plan from 2,400 units in 2006 to 6,000 units in 2007, and 8,400 units in 2008.

The increase in the supply of new HDB flats would cater to the higher demand for public housing from citizens, particularly the first-timer households. There is no need for a separate quota for SPRs buying resale flats.

Mr Chua also asked how the increased numbers of SPRs would affect the Ethnic Integration Policy (EIP).

The EIP is an important national policy promoting racial harmony by ensuring a balanced ethnic mix in Singapore’s public housing estates. It provides HDB residents of different races with opportunities to interact as neighbours, which is important especially for new immigrants amongst us.

The EIP is applied consistently to both citizens and SPRs. We regularly review the EIP policy to ensure it achieves its intended objective.

Ignatius Lourdesamy Ag
Deputy Director (Marketing & Projects)
Director (Estate Administration & Property)
Housing & Development Board


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