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There is no need to lower the rental rates of flats as they are all very affordable, said Minister for National Development Mah Bow Tan yesterday.
“Rental flats are already heavily subsidized. There is no need to revise the rent structure as the rates are low, and are affordable to even the very low income," said Mr. Mah.
Households with below $800 monthly income pay an average rent of $30 for a one-room flat each month.
Those who earn $800 to $1,500 a month pay 30 percent of the market rate, which was fixed at $110 per month for a one-room flat since 2005.
For households with severe financial problems, HDB will extend more assistance. For instance, an instalment plan can be designed to help with their rental arrears.
Meanwhile, HDB will not implement higher rental rates on households that earn more than $800 a month but suffer from financial difficulties due to their medical bills or large family size.
HDB will also refer needy households to Family Service Centres or Community Development Councils (CDCs) for more help.
Mr. Mah’s statement was in response to a question from Mr. Lim Biow Chuan, who asked if the government will review the household rental rates considering the increased cost of living in the country.
Mr. Lim, the MP for Marine Parade GRC, also asked how many tenants were asked to leave their flats in the last 12 months due to inability to pay their rents or illegal subletting.
For the past 12 months, HDB dismissed the tenancies of 185 occupants who illegally sublet their HDB rental flat.
Mr. Mah also revealed that HDB had caught several illegal subletters renting out one-room HDB flats for as high as $1,000 a month.
"They have abused Government subsidy and deprived the truly needy of a rental flat. We need to send a clear signal that such behaviour is not acceptable.”
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