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SINGAPORE: Future build-to-order flats in prime locations may receive more subsidies to remain affordable, but may also face some restrictions on resale conditions, National Development Minister Desmond Lee said on Friday (Dec 11) .
In a Facebook post, Lee said that a new housing model is necessary for public housing in “new areas with very important attributes” as they will be “much more expensive” than current BTO floors.
Lee’s comments come amid concerns about the so-called “lottery effect” of public housing, where owners of subsidized flats in privileged areas sell their homes for much higher prices than they initially bought.
Singapore has announced plans to develop thousands of housing units in the Greater Southern Waterfront, which is about to become part of the Central Business District (CBD).
The 2,000 hectare development will be six times the size of Marina Bay and was developed by Prime Minister Lee Hsien Loong in his National Rally Day address last year.
READ: Specific measures could curb the ‘lottery effect’ of public housing in the Great South Pier, experts say
To maintain affordability, additional grants may be needed for future projects in prime locations in addition to those that already exist for all BTO units, Mr. Lee said.
However, he acknowledged that the additional subsidies could also lead to an “equity issue” when they result in higher capital gains for buyers.
“In addition, we want to preserve the character of public housing in these developments, so that, like other HDB developments in Singapore, they remain inclusive over time,” said Lee.
“Therefore, we will have to consider measures for the next new floors in prime areas that balance these various objectives.. “
READ: Government working on a new pricing model for HDB apartments in Greater Southern Waterfront: Lawrence Wong
Mr. Lee noted that there will be a variety of floor types at these properties, including two-bedroom Flexi apartments and rental housing where possible, “to meet different needs.”
He said there is “a whole range” of ideas that can be applied to future flats under the new housing model, and that the Ministry of National Development is studying its options.
“We have received many ideas, for example some have suggested introducing some restrictions on resale conditions for future projects in major areas,” said Mr. Lee.
In an interview with the Chinese-language daily Lianhe Zaobao in November, Lee said the Greater Southern Waterfront project was “quite advanced” and that there may be other sites “with very important attributes that could be implemented in the following months.” and years ahead “.
Mr. Lee had also reiterated that the Housing and Development Board would seek public comment through engagement sessions over the next several months.
