HDB could launch more flats next year

More than 16,000 new flats could be launched by HDB in several estates in 2011 if demand for public housing remains strong, said National Development Minister Mah Bow Tan.

Due to rising cash premiums and resale flat prices, HDB has launched approximately 16,000 new flats under the BTO scheme in 2010, possibly the highest number in a decade, said Mr. Mah who spoke to reporters.

As of end July, HDB launched over 9,800 new BTO flats, with high subscription rates for these launches.

“If demand continues to be strong like this, we will ramp up our building programme even further for next year,” said Mr. Mah.

Established estates like Jurong and Tampines could see more flats beyond the newer towns of Sengkang and Punggol. Punggol has reached a critical mass of approximately 21,000 to 22,000 flats, said Mr. Mah. “Once we have achieved that, then we are able to now move into other parts of Singapore as well.”

Sengkang and Punggol still have land available for development, and HDB is also seeking sites in other estates but will not open up new estates yet, he said.

Mr. Mah had earlier Simpang in the north-east and Tengah in the west as potential townships.

However, while the government has allocated land for new estates, construction will be expensive and there will be a lot of work in terms of building sewerage systems, roads and other infrastructure, said Mr. Mah.

Meanwhile, demand for private homes has also been strong, especially those in the mass-market segment. The government has reduced the project completion period (PCP) for private residential sites from six years to five years to guarantee more timely home supply.

The change was a “minor tweaking” and should not affect many property developers, said Mr. Mah. The shorter PCP provides “better assurance that the supply will come on stream. The longer the PCP, the more uncertain the supply projections going forward,” he said.