Govt To Focus On Housing Policy: PM Lee

Source : The Straits Times, Aug 19, 2007

PRIME Minister Lee Hsien Loong has announced a slew of measures to make it more affordable for Singaporeans to own a flat, especially for the lower-income group.

Speaking at the National Day Rally, Mr Lee said besides CPF, housing is another major policy that can help 'narrow the income gap'.

So to better help the lower-income buy HDB flats, the Government will up the Central Provident Fund (CPF) Housing Grant introduced last year to $30,000, from the current $20,000. This is a 30 per cent subsidy for a three-room flat worth $120,000.

On top of this, the household income ceiling will be raised from $3,000 to $4,000 to cover about half the households in Singapore.

The Ministry of National Development (MND) is also looking into ways to make it easier to monetise the Housing Development Board (HDB) flats, particularly two and three-room units.

Mr Lee said the HDB will introduce a new scheme for those aged 62 and above, to buy back the tail end of their lease to leave flat owners with a shorter, 30 year lease on the same flat. The payout will be given in two parts - a lump sum upfront and monthly payments in the form of an annuity.

Upgrading homes

Moving on to new developments, Punggol 21 that was started in 1998 will be the 'face of new Singapore'.

PM Lee said that the project was slowed down due to the financial crisis and now that demand is back, the plan has been upgraded to Punggol 21-Plus.

Features include damming the river mouths of Sungei Punggol and Sungei Serangoon to create two reservoirs to be linked by a waterway.

By the end of the year, residents will also get a new sports and recreation centre that will have four swimming pools, an indoor sports hall and a football field.

On old and middle-aged estates

PM Lee also touched on the renewal of old and middle-aged estates.

He said the Government is redeveloping selected sites within the old estates. One of them is the Dawson Estate in Queenstown.

For the middle-aged estates, the government will roll out the Neighbourhood Renewal Programme (NRP) to replace the current Interim Upgrading Programme (IUP) for individual precints.

The NRP will combine two or more precints to deliver better upgrading plans and facilities.

For individual flats, the current Main Upgrading Programme (MUP) will be replaced with a new Home Improvement Programme (HIP), for practical improvements within the flats.

For flats built up to 1980, 100,000 have already benefited from MUP. Another 100,000 will get to gain from the HIP.

The HIP and NRP will be extended to flats built from 1981 to 1986.

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Boosting Home Ownership Assets

Prime Minister Lee Hsien Loong has unveiled plans to make it more afforable to own a flat, especially for the lower-income group and elderly.

They include - upping the CPF housing grant and the household income ceiling and making it easier for the low-income to monetise their homes.

The aim - to narrow the widening income gap and help Singaporeans to build a nest-egg for old age.

Yishun and Tampines will pilot the HIP.

As for those living in private estates, PM Lee said they will not be left out. Schemes like the Estate Upgrading Programme (EUP) will be revamped and the estates will be given Community Improvement Project Committee (CPIC) funds just like the HDB estates.