19 AUGUST 2009

Question No. 37
Question by: Dr Lim Wee Kiak

Dr Lim Wee Kiak asked the Minister for National Development (a) what percentage of new flat applications are from the elderly for the last 12 months; (b) what is the success rate of these applicants compared to the rest; and (c) whether the Ministry will be introducing any new measures to cope with the housing demand of an ageing population.

Answer

1      Over the last 12 months, about 4% of new flat applicants in HDB’s Built-To-Order or BTO exercises were 55 years or older.

2      New HDB flats are primarily meant for first-timer households with 90% of BTO flats set aside for them to set up their first home.   First-timers are also given double the chances when balloting for a new flat. The success rate of applicants is therefore determined by their status of whether they are first-timer or otherwise, and not by their age.  Many of the elderly have benefited from our public housing schemes earlier in their lives, and if so, they are considered second timers, and will be accorded lower priority. Elderly who are first-time applicants will enjoy the same chances as their younger counter-parts.

3      In recognition of the unique housing needs of the elderly, HDB has introduced the Studio Apartment for those 55 or older.  Studio Apartments are sold with a shorter lease of 30 years and come with elder-friendly features such as lever taps and hand bars.  They have been very popular with close to 100% take-up.  HDB will continue to build more of them. 1,000 more units are planned for launch over the next 2 years.

4      To meet the needs of an ageing population, we have also put in place an array of monetisation options to enable elderly home owners to unlock their flat equity to support their retirement.  Downgrading to a Studio Apartment or a smaller resale flat is one way to unlock flat equity.  The elderly can also choose to sell or sublet their flat and stay with their children.  HDB has progressively relaxed its whole flat subletting rules to allow more lessees to do so.

5      Since March this year, HDB has implemented the Lease Buyback Scheme or LBS to help the less well-off elderly in smaller flats unlock their flat equity. This subsidised scheme allows them to age-in-place while receiving a monthly income for life. To date, more than 300 elderly households have applied for the scheme.

6      We will continue to review and enhance the LBS and other monetisation schemes to cater to the needs of our elderly.

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