Committee of Supply 2023 debate, Day 5: Desmond Lee on 'ambitious and exciting' moves to create space for an inclusive and liveable Singapore

The Government’s first priority is to catch up on lost time to deliver keys to Singaporeans who have been waiting for their homes, and expects to “turn the corner soon”, said National Development Minister Desmond Lee. He said the Housing and Development Board (HDB) is on track to complete and hand over keys to another 20,000 HDB flats across 22 housing projects. In the private sector and public market, close to 100,000 home completions are expected between 2023 and 2025. This year alone, almost 40,000 completions are expected, the highest number in the last five years. The Government has significantly increased the supply of Build-to-Order (BTO) flats, with HDB “building aggressively and on a very large scale”, overseeing almost 100 BTO projects islandwide, said Mr Lee. By 2025, there will be more than 150 concurrent projects. After addressing the current supply crunch, HDB will get back on track to launch more "shorter waiting time" flats from 2024. By 2025, it plans to return to pre-COVID levels and launch around 2,000 to 3,000 of such flats per year. Outlining his ministry’s priorities in Parliament on Thursday (Mar 2), Mr Lee said one key priority is to lend a stronger helping hand to young married couples and families who are trying to buy their first home. There will be a new category for first-timer parents and married couples. It will apply to first-timer families with children aged 18 and below, as well as young married couples aged 40 and below. They must not have owned or sold any residential property before, or had the chance to book a flat in the past five years. About 10 per cent of all first-timer families will fall into this sub-category. To help couples increase their chances of getting a flat, first-timer parents and married couples will get one additional ballot when they apply for a new HDB flat, making it three ballots in total. The Parenthood Priority Scheme will be renamed Family and Parenthood Priority Scheme to allow all first-timer parents and married couples to qualify. This means that young married couples who do not have children also qualify. With more families qualifying, HDB will increase the flat supply set aside for them - up to 40 per cent of the BTO flat supply and 60 per cent of the Sale of Balance flat supply in all launches in mature and non-mature estates, and prime locations. For BTO launches in non-mature estates, first-timer parents and married couples will get first priority if they apply for a four-room or smaller flat. To encourage applicants to apply for flats only if they really intend to buy one, the rules for non-selection will be tightened. All these moves will take effect from this year’s August BTO exercise. Mr Lee said announcing the changes early will give everyone some time to understand them. HDB will also need some time to stress test and implement the system changes, he said. Mr Lee assured the House that the Government sets prices for BTO flats with affordability in mind, as it makes "ambitious and exciting moves" to create space for future generations. “As has been the hallmark of this Government, we will always look ahead to plan sustainably. We will continue to provide good homes for our people, and we will work closely with Singaporeans to ensure that the future of Singapore remains bright, inclusive and liveable,” he said.