IMPOSITION OF INCOME CEILING OF $7,000 FOR HDB FLAT APPLICANTS UNDER THE PARENTHOOD PROVISIONAL HOUSING SCHEME

Mr. Murali Pillai asked the Minister for National Development with regard to HDB’s recent decision to impose an income ceiling of $7,000 for applicants under the Parenthood Provisional Housing Scheme (a) what is the basis of fixing the $7,000 income ceiling; and (b) whether HDB can consider taking into account the per capita income of the applicant’s household.

Mr. Desmond Lee: The Parenthood Provisional Housing Scheme (PPHS) provides an additional temporary housing option for eligible first-timer households awaiting the completion of their new flats.

Since 2020, the demand for PPHS flats has increased due to delays in the completion of BTO flats, more people working from home and more competition for open market rental. At the same time, the supply of PPHS flats has tightened as delays in BTO completion have stalled the return of PPHS flats to HDB, and the shortage of workers has slowed down sprucing-up works for the PPHS flats before they can be rented out to new tenants.

While we will be increasing the supply of PPHS flats starting from this year and over the next two years, the number of PPHS flats remains limited. Given the increased demand and supply crunch, we are prioritising families in greater need of subsidised temporary housing, and have fine-tuned the eligibility conditions and allocation process. The income ceiling of $7,000 will enable us to support families who are less able to afford renting a flat on the open market. At the same time, it is well above the median monthly household income of PPHS applicants of about $5,700. Presently, $7,000 is also the income ceiling for 3-room flats in most BTO projects in non-mature estates.

Households with a monthly income of more than $7,000 but who have high monthly expenses, including larger households, may approach HDB if they require assistance with temporary housing. Their PPHS applications will be considered on a case-by-case basis.