HDB looking at reducing waiting time for new flats

HDB flat buyers may be able to get their home keys more quickly, as the public housing board is now looking into new ways on how to shorten the waiting period of flat buyers, from three years to less than two-and-a-half years.

Minister for National Development Mah Bow Tan said the Housing & Development Board (HDB) will consider building new flats before selling them to the public, especially when the subscription rate for a HDB flat is high.

Mr. Mah also noted that new HDB flats are still affordable.

HDB examines this by comparing monthly household income to monthly mortgage instalments. The average Debt Service Ratio (DSR) during the last six months ranged from 17 percent to 25 percent.

Mr. Mah stressed that this is near the 23 percent CPF contribution rate, and within the 30 percent to 35 percent international housing affordability benchmark.

"At 25 percent DSR for a three-room flat, we're talking on the average of a monthly installment of $528. But the $528 can be almost fully paid using the CPF contributions. So in that particular instance, that family would probably need to pay something like $40-50 per month in cash,” said Mr. Mah.

He added that "based on the current situation, and based on the situation we've been seeing over the last 10 years, these figures indicate our new flats are well affordable, well within the means of all the different income groups."