HDB resale market showing signs of stabilising: Khaw

SINGAPORE: The HDB resale market is showing signs of stabilising, said National Development Minister Khaw Boon Wan.

Speaking in Parliament on Wednesday, Mr Khaw said the yearly Resale Price Index (RPI) growth has gone down from 14.1 per cent in 2010 to 10.7 per cent last year.

And in the first nine months of this year, the figure stood at 3.9 per cent.

However, Mr Khaw said an uptick in quarterly RPI growth to two per cent in the third quarter of this year showed that while things are improving, there is still some way to go.

He said a number of property cooling measures that had been implemented will take some time to work through the market.

These include the "huge supply" of new housing units which will only be available over the next two to three years.

As for public rental blocks, the Ethnic Integration Policy (EIP) is also under review to better reflect Singapore’s demographic changes.

Mr Khaw said: "Currently, about 60 per cent of HDB’s public rental blocks have reached the EIP block limit of 25 per cent for Malay households. We are in the midst of reviewing the EIP limits for rental flats to take into account the demand from the various ethnic groups."

MP for Aljunied GRC, Pritam Singh, had also asked if HDB would consider allocating rental flats on a strict needs basis only. This is to avoid rejection or delay as a result of the applicant’s preference of a rental zone.

In his reply, Mr Khaw said: "Applications for a rental flat are assessed and approved on a strict needs basis. As for allocation, rental applicants may prefer certain locations, which are nearer their workplace or their children’s school.

"We allow them the flexibility to choose the location zone, so that we are better able to meet their needs. HDB will advise them on the estimated waiting time for their preferred zone, as well as the zone with the shortest waiting time, so that they can make an informed decision."

— CNA/al