Following National Development Minister, Mr Khaw Boon Wan's, announcement in March this year that finally first-timer single Singaporeans, aged 35 years and above, are eligible to buy two-room flats in non-mature estates directly from HDB, speculations were rife about the popularity of these tiny units among singles.
As the 30 July Build-To-Order (BTO) exercise shows, these mickey-mouse apartments are in hot demand. According to HDB all the two-roomer earmarked for singles were oversubscribed. In this BTO exercise about 30% of the 519 two-room flats in Sengkang and Yishun were for eligible singles. But HDB received, on average, 19 applications for each unit by the second day of the application period. Specifically, 27.2 and 12 applications were made for each unit in Sengkang and Yishun, respectively.
The two-roomers are priced between $76,000 to $133,000 and come in 35 sq m and 45 sq m. However, with additional grants the price can come to as low as $16,000. Mr Khaw adds that this is only the beginning to liberate rules for singles, and states that bigger flats maybe offered to singles in the future.
In further support for singles to obtain home ownership, the Government has extended the Additional CPF Housing Grant (AHG) to eligible singles buying BTO flats or resale flats, and the Special CPF Housing Grant (SHG) to eligible singles buying BTO flats.
Singles can enjoy up to $20,000 AHG if they apply under SSC, and up to $40,000 for those who apply under the JSS.
Whereas the SHG grant is up to $10,000 and $20,000 for singles applying under the SSC and JSS, respectively.
Analysts believe the strong demand for this crop of two-room flats is driven by the generous subsidies and that some of these flats can be had soon as they are from previous BTO exercises and are already being built. For instance, the two-room flats at Orchid Spring @ Yishun is anticipated to be ready by end of next year.
Our opinion
We welcome these moves from the government. However we feel that the government should not start a trend of building smaller housing units such as these. These are "mickey mouse" unit sizes. While the price points seem reasonable given the current hot market, but starting a trend of smaller housing, the government seems bent on creating a benchmark price for smaller units and thereby paving the way for future smaller flats.
Rather we would prefer for the Government to avail larger HDB flats even for singles, rather than 35 to 45 sq m flats. Once the practice of smaller HDB flats are started, we may never be able to go back to decent HDB sizes and the quality of life of Singaporeans and Permanent residents will forever be impacted.
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