PPHS SUPPORT

In his Budget 2024 speech, DPM Lawrence Wong announced that couples who get balloted out of PPHS units will be eligible to get 1 year support (through PPHS vouchers) to enable them to rent from the market directly. I was happy to note this proposal. I made this proposal in October 2022. In its reply, MND was concerned about the impact of grants on the rental market. I therefore sought clarification from MND on the same issue. My cut speech delivered during the MND COS debate is set out below.

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I welcome DPM Lawrence Wong’s announcement that the Government will provide 1-year PPHS voucher for eligible families to rent HDB flats in the open market.

I have met several young couples eager to start families who unfortunately were balloted out of PPHS flats and, for various reasons, do not have viable housing options as they wait for their BTO flats to be ready as they are unable to afford to pay market rent.

In my PQ filed in Oct 2022, I suggested, given the tight supply of PPHS flats, that these couples be provided with grants to enable them to rent flats from the market directly.

MND, in its response, stated that such action will “likely induce demand and may drive up market rentals which would be counter-productive as it makes renting more expensive”.

Given the Government’s decision, may I ask what steps are being taken to minimise the concern that MND expressed in response to my PQ. Given that the wait for BTOs is usually more than 1 year, how is it proposed that we deal with the “cliff” effect after the expiry of 1 year.