Letting singles buy new flats - not so soon

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http://www.todayonline.com/Hotnews/EDC120908-0000069/Letting-singles-buy-new-flats,-with-restrictions-first

In his post, titled 'Singles, I hear you', Mr Khaw reiterated that his priority has been to focus on helping first-time married applicants get flats first. "And we have produced good results," he said.

"I have now begun to focus on second-timers. These are still early days, and results will take a few more months to show. This means going into next year," he said.

But it has also allowed him to begin to think about how to address the singles' housing needs, though he noted that it was not something he could "hurry too much" over.

"Firstly, I need to focus on the immediate needs of the second-timers until they are largely addressed next year.

"Secondly, I want to have a better handle over the likely additional demand for new HDB flats when we open the scheme to singles. The additional demand is unlikely to be small and if we misjudge, the interests of the married couples, especially those with children, may be adversely affected."

One practical approach, given the "the difficulty of assessing demand", is an incremental one: "We can start the scheme with some initial restrictions (eg on flat type). This way, we can better ensure the scheme meets the needs of the singles, while still protecting the interests of the married couples."

Another way is to launch a larger number of BTO flats next year, but "question is what should that magical number be. This requires some study, and market research. Hence, I need some time," he said, encouraging Singaporeans to continue giving their views.

Currently, singles can only buy resale flats and they must be above 35 years of age to do so.

Any change to the rules that will allow single Singaporeans to buy new Housing Board flats likely won't happen anytime this year, but National Development Minister Khaw Boon Wan says he has started to mull over how to address their housing needs.

In a blog post today, he noted that some of the comments and suggestions surfaced since the Prime Minister's National Day Rally have been "quite sound". Those he cited:

- Allowing singles to buy Build-to-Order flats should not be at the severe expense of married couples;

- There must be some restrictions on the type of flats that singles are allowed to buy;

- Singles should not be allowed to rent out the flats;

- If two singles with 2 BTO flats subsequently get married, one of the flats should be sold;

- There must be a difference between the subsidy received by a single and a married couple.

Mr Khaw also highlighted two other suggestions made: That flats sold to singles should be of shorter lease and longer mode-of-payment, and that a higher age threshold (that is, over 35) should be imposed on such BTO applicants.