Two-room HDB flats may not appeal to many singles

Going by the numbers alone, the next launch of two-room Housing Board flats in July could be massively over-subscribed as a result of the recent move to allow singles to buy the units.

Eight in 10 working singles - some 150,000 Singaporeans - are now eligible to buy the smaller flats, which make up only a small fraction of the units launched each year.

But property watchers and singles themselves also say many of those eligible may give the flats a wide berth because of their small sizes and far-flung locations.


National Development Minister Khaw Boon Wan had said last Friday that the two-room flats for singles will come in two sizes - 375 sq ft and 485 sq ft - and be located in non-mature estates like Sengkang.

Someone earning $5,000 - the income cap for singles who want to buy a Build-to-Order (BTO) flat - could get a mortgage loan for up to $350,000.

This would cover the price of three-room resale flats in most areas, he noted - big enough to entertain friends and host guests. Some singles agree. It is unclear how many two-room flats will be launched in July now that singles are eligible, but they have traditionally been in short supply from HDB.

Last year, out of 27,000 flats launched, only 424 were two- room units. The bulk of them were in non-mature estates. In its Sale of Balance Flats exercises last year, 1,755 flats out of 7,153 from HDB were two-room.

Even so, only about half are taken up at initial BTO launch on average, said HDB. In response to queries from The Straits Times, HDB said it is still working on details of the singles scheme, and will monitor the response to the new projects in July. It will consider building more two-room flats if demand is strong, said its spokesman.

Source: The Straits Times –13 March 2013