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HDB will increase the supply of subsidised
rental flats to further cater to the housing needs of the lower income
households. |
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At the same time, HDB will align the rental
rates to household income, to ensure that our rental subsidies are
targeted at low-income families with no alternative housing options. |
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Increasing Rental Demand |
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To meet the growing demand for rental flats
from low-income families, HDB will resume the building of new rental
flats in various public housing estates. The new rental blocks will be
interspersed with the sold blocks to achieve a balanced social mix. |
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In the interim, HDB will also convert 3
vacant blocks of 3- & 4-room flats at Boon Lay and Woodlands into about
1,000 units of 1- & 2-room rental flats. |
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The conversion works are scheduled to be
completed in early 2008. This will enable HDB to offer more rental flats
earlier to the low-income families. |
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Alignment of Rental Rates to Household
Income |
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Currently, there are 2 tiers of rent under
HDB¨s Public Rental Scheme. |
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1st-tier rent, at about 10% of market rent,
is payable by tenants who earn $800 per month or less. |
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Introduced in Oct 2003, 2nd- tier rent is
pegged at about 30% of market rent, and is payable by tenants who
started renting their flats after 1 Oct 2003 with income between $800
and $1,500 per month. |
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Starting from 1 Mar 07, HDB will align the
rental for its flats to the household income of the tenants. |
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Tenants whose monthly income is $800 and
below will continue to pay the 1st-tier rent. Similarly, tenants who
rented their flats after 1 Oct 2003 and whose monthly income is between
$801 and $1500 will continue to pay the current 2nd-tier rent. |
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However, tenants whose income has since
risen above these levels will be required to pay higher rent based on
their new income levels (See Annex Table 1 for revised rent structure). |
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The vast majority (80%) of the existing
tenants have income of $800 and below. They would not be affected by the
rent alignment and would continue to pay existing rent. |
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The revised rent structure will encourage
tenants who have greater financial means to opt for other housing
options, such as a homeownership flat. |
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Eligible households will receive assistance
such as the Additional CPF Housing Grant when they purchase their first
ownership flat. This will help to free up more rental flats for the
needy. |
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Implementation |
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HDB rental flats are let on a 2-year
term tenancy. The alignment of the rental rates will take effect
from 1 Mar 07 and will be phased in over 2 tenancy renewals. |
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For existing tenants, they will be
informed of the rental rates for their next tenancy term about 3
months before their current tenancy expires. |
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2nd-timers renting HDB flats |
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Starting from 13 Nov 2006, rental
rates will also take into account whether tenants have enjoyed
housing subsidy previously. |
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Those who have previously sold one
subsidised flat in the open market (ie 2nd-timer households) will
be charged higher rent compared to other low-income families who
have not enjoyed any housing subsidy previously. This is to ensure
equitable distribution of public housing subsidy. The rent
structure for new 2nd-timer households is shown in Annex Table 2. |
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Enquiries |
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For enquiries on the revised rental
policies, the public can contact the Branch Office Service Line at
1800 225 5432. |
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More..... (Annex) |
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Source:
www.hdb.gov.sg Press Release
12 Nov 2006 |
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Important
Notice |
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FrontPage Edition: Fri 17 November 2006
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