Mr Pritam Singh asked the Minister for National Development with regard to the increased rental occupancy cap for HDB units from January 2024 (a) whether the Ministry foresees a rise in neighbour disputes and community disamenity, given the rationale for a reduced occupancy cap in HDB flats from nine to six as previously announced in 2018; and (b) whether HDB is sufficiently equipped to resolve any rise in complaints from such disamenity.
Mr Chua Kheng Wee Louis asked the Minister for National Development in each of the last five years (a) what is the number of cases of infringements of the occupancy cap on the number of persons allowed in (i) HDB flats and (ii) private residential properties respectively; and (b) what is the number of cases of unauthorised renting out of HDB flats.
Mr Tan Kiat How: Sir, my response will also cover matters raised by Mr Gan Thiam Poh scheduled for a subsequent Sitting. So, I invite the Member to seek clarifications if need be. If the question has been addressed, it may not be necessary for him to proceed with the question for future Sittings.
Since 2022, we have seen sharp increases in rents in both the public and private rental market. Prior to the pandemic, rents had stayed broadly stable, even a bit soft. However, COVID-19 caused unprecedented disruption in the construction industry, global supply chains and border controls, and the ensuing construction delays contributed to significant tightness in our rental market.
In addition to the supply-side constraints, the delays resulted in strong rental demand from Singaporeans who were seeking interim housing while awaiting the completion of their new residential units. Subsequently, with the easing of border restrictions in 2022, non-resident rental demand also quickly recovered.
To address these supply and demand imbalances, we have undertaken a broad suite of measures to support households that intend to rent. This includes significantly ramping up our public and private housing supply and increasing the supply of flats available under the Parenthood Provisional Housing Scheme (PPHS) for those awaiting completion of their new Housing and Development Board (HDB) flats. Close to 100,000 public and private residential units will be completed from 2023 to 2025. We have also more than doubled PPHS supply to about 2,000 since 2021 and will further double it to about 4,000 units by 2025.
Public and private housing rents have showed recent signs of stabilising, with the quarterly increase in public and private housing rents moderating to 1.9% and 0.8% respectively in the third quarter of 2023, from 3% and 2.8% respectively in the previous quarter.
That said, we expect rental demand to remain robust over the near term.
That is why we announced the temporary relaxation of the occupancy cap for 4-room and larger HDB flats, and private residential properties of at least 90 square metres. From 22 January 2024, these accommodations will be allowed to house up to eight unrelated persons, up from the current cap of six unrelated persons.
Allowing larger units to be rented out to more tenants will increase rental supply, even as we recognise that not all landlords and tenants will tap on the relaxed occupancy cap.
By increasing supply, we aim to ease the pressure in the rental market and help to moderate rents overall. This will benefit all households seeking to rent, such as Singaporean families who are in between homes, including those waiting for the completion of their new flats, as well as Work Pass holders who play a critical role in our domestic economy and essential services, such as healthcare workers.
As of November 2023, there are approximately 58,000 HDB whole flats that are rented out. This is about 5% of the approximately one million sold HDB flats island-wide. Of these, 16% are rented out to six unrelated occupants. About 90% of these occupants are non-residents, with most in their 20s or 40s.
Some Members have raised concerns about infringements of the occupancy cap and potential disamenities that may arise from this temporary relaxation. We understand these concerns. We have put in place measures to mitigate these infringements and disamenities.
First, HDB regulates who is allowed to rent a HDB flat or a bedroom to minimise disamenities and maintain the Singaporean character of our HDB estates. We have put in place the non-citizen quota of 8% for HDB neighbourhoods and 11% for HDB blocks, which limits the number of flats that can be rented to foreigners in each neighbourhood and block. Non-Malaysian Work Permit holders from the construction, marine and process sectors are also not permitted to rent HDB flats or bedrooms. These rules will continue to apply.
A Member asked if we intend to limit the number of flats in an HDB block that may tap on the temporarily relaxed occupancy cap, to prevent overloading of existing infrastructure. While we do not currently have plans to impose such a cap, the existing non-citizen quota will help to limit the increase in occupants in each block, given that most of those renting at the occupancy cap are non-citizens.
Second, HDB flat owners are required to seek HDB’s approval prior to renting out their flats or bedrooms. HDB also undertakes routine inspections to ensure that owners and tenants comply with the terms and conditions of approval, and do not cause serious disamenities to the public.
Over the past five years, instances of feedback relating to nuisance caused by tenants renting HDB flats or bedrooms constituted 1.5% of the total feedback on nuisance from neighbours. Where friction arises between neighbours, including tenants, HDB adopts a mediative approach and advises flat owners and tenants to be mindful of causing disturbances to others. Should the parties require additional mediative assistance, we will encourage them to tap on Government initiatives such as the inter-agency Community Dispute Management Framework and the Community Mediation Centre, which provide facilitated mediation sessions that can help parties reach mutually acceptable solutions. Finally, in instances where tenants cause serious disamenities, HDB will take firm action by revoking the approval for the rental of the flat or bedrooms.
Over the past five years, HDB has taken action against an average of 115 cases of unauthorised renting a year, including cases where flat owners had breached the occupancy cap.
As we temporarily relax the occupancy cap, we will continue to take firm action against those who breach the rules. Depending on the severity of the infringement, HDB will issue written warnings, impose financial penalties or compulsorily acquire the flat for the most severe cases.
Similarly, owners of private residential properties must first register with the Urban Redevelopment Authority (URA) to authorise their properties to accommodate more than six persons. In the event of serious disamenities, the authorisation will cease, requiring the property to revert to its original occupancy cap of six.
URA undertakes regular inspections to ensure compliance with the prevailing occupancy cap. Those who breach the cap can be fined and/or imprisoned. Over the past five years, URA has taken action against an average of 244 cases per year for breaches of the occupancy cap in private residential properties.
Sir, the relaxation of the occupancy cap is a temporary measure that will be in place for three years to better meet near-term rental demand and moderate rents for Singaporean households that need to rent. We will continue to monitor the demand and supply of open market rentals as well as residents’ feedback on disamenities. These will be taken these into consideration when reviewing whether the relaxed occupancy cap should be extended beyond 2026.
Mr Speaker: I see many hands. I will request every Member to keep your supplementary question short. Mr Louis Chua.
Mr Chua Kheng Wee Louis (Sengkang): Thank you, Mr Speaker. Just two short supplementary questions for the Senior Minister of State.
The first is relating to the number of rental flats that are being rented out right now. I think it was 58,000. May I ask what has been the increase in the last five years and, correspondingly, the expected increase in the number of HDB flat units that will be rented out? And the context is really that, given that there is an increased number of units completing, a lot of them will still be subject to the five-year minimum occupation period (MOP).
The second supplementary question is: beyond the so-called natural increase in the number of units that are put up for rent, are there other proactive measures that the Government is taking in order to increase the number of rental flats available for renting from now until December 2026?
Mr Tan Kiat How: Sir, on the first supplementary question by Mr Louis Chua, I think he has also filed a Question for Written Answer in Parliament today. More details will be shared if there is a written answer. But suffice to say, in general, over the past five years, the proportion of flats rented out and the average number of occupants in each flat type has been fairly stable.
For the second supplementary question, can the Member repeat? I missed out that point.
Mr Chua Kheng Wee Louis: It is basically that, other than this measure, are there other measures that will be taken to increase the actual units to be supplied?
Mr Tan Kiat How: Sir, Mr Louis Chua earlier, in his first supplementary question, also asked about the projected number of rental units that will be available because of this relaxation. If we look at the analysts’ reports, actually there is a range of views and most of them also cannot find a strong position of whether this will increase the supply because it really depends on whether landlords and tenants take up this additional relaxation.
I have looked at some of the analysts’ reports, some said that, actually the supply might reduce because, for example, if a company is renting out two flats for eight workers and they are renting in two flats now, to combine, at least for the next few years, into one flat. At the same time, some of the landlords might actually take advantage of this temporary relaxation to increase the number of tenants in their flat. So, most analysts also cannot project the number of flat supply that may come onstream because of this.
Earlier in my reply, I also mentioned that this move should be seen in the context of the suite of measures that have been put in place: increasing the number of flats available in a market, increasing the number of Parenthood Provisional Housing Scheme (PPHS) flats available, the suite of measures that were put in place to moderate the imbalances between demand and supply.
Mr Speaker: Mr Pritam Singh.
Mr Pritam Singh (Aljunied): Just two questions for the Senior Minister of State.
I refer to the point the Senior Minister of State made about the non-citizen quota. I understand it only applies when the entire flat is rented out and does not apply when bedrooms are rented out. In view of the decision to increase the rental occupancy cap, does HDB actively track, or does it plan to actively track the nationality of tenants who are renting out bedrooms and would the Senior Minister of State agree with me, notwithstanding his previous answer to the supplementary question by Member Foo Mee Har, there will also be additional manpower expectations on Town Councils arising from the new rental occupancy cap? For example, when you have eight tenants in an HDB flat, they may dry their clothes at the common corridor and there may be additional disamenities of this nature requiring HDB to come in to liaise with the owner and so forth. My PQ covered manpower issues and is it the Senior Minister of State’s position that there is sufficient manpower for HDB to deal with this problem?
The second question pertains to a possible increase in noise-related complaints with the revised rental occupancy cap. The Community Advisory Panel on Neighbourhood Noise that was set up in 2022 recommended a quantitative noise threshold in the form of decibels to help in the assessment of egregious cases of neighbourhood noise. In January last year, Minister Desmond Lee replied in Parliament that the Ministry of National Development (MND) was studying the recommendations and would provide a response when it was ready. Can I inquire whether a decision has been made on the specific proposal pertaining to a quantitative noise threshold and if more communication and education needs to be undertaken by HDB to prospective owners who intend to let out their flats or bedrooms to ensure that tenants adhere to the recommended quiet hours of between 10.00 pm and 8.00 am?
Mr Tan Kiat How: Sir, Mr Pritam Singh has two supplementary questions. Let me take them in turn.
The first one is a relatively factual one, whether the occupancy cap applies to flat or room rentals. It applies to all room rentals, tenant composition and so on. But a more important point he was asking was related to what Ms Denise Phua and Miss Cheryl Chan were asking as well, whether there is enough manpower for enforcement.
Sir, we take the feedback on disamenities and complaints seriously and we will proactively work with the community partners to deal with these matters. But again, let me just set in context that, as of now, the complaints received resulting from tenancy rental, feedback on nuisance between neighbours is about 1.5% of all the total number of feedback received from nuisances caused by neighbours. And that is why we have to also look at these numbers and have an appreciation of whether there will be a sudden explosion of disamenities. But we take all complaints seriously and will continue to work closely with community partners, including Town Councils.
On the Member’s second query regarding the quantifiable measure for noise, I invite the Member to file a PQ on this because separate data on this is not available to me at this point in time.
Mr Speaker: Mr Pritam Singh.
Mr Pritam Singh: Much obliged, Speaker. Just a quick follow-up to the reply to the first supplementary question on the applicability of the non-citizen quota vis-a-vis the renting out of bedrooms. I have the relevant printout from the HDB website here. It states that the non-citizen quota does not apply to the renting out of bedrooms. So, I hope the Senior Minister of State can clarify this particular point. Is that applicable only in a certain situation or is that the broad policy that the quota does not apply to the renting out of bedrooms?
Mr Tan Kiat How: Sir, sorry. I thought the Member meant the occupancy cap, whether it applies to whole flat rentals or bedroom rentals. For the non-citizen quota, it applies for whole flat rentals.
Ministry of National Development
9 January 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=oral-answer-3397
Office of the Leader of the Opposition 