Rise in former homeowners applying for public rental flats

The number of former homeowners moving into public rental flats has been climbing in recent years, said Minister of State for National Development Mohamad Maliki Osman during yesterday's Committee of Supply debate in parliament and reported in the media.

Calling the trend "worrisome", he revealed that these homeowners account for 59 percent of current public rental applicants, up from 52 percent five years ago.

Dr Maliki noted that while it may be tempting to sell a home in times of financial difficulty or in a rising property market, owners should not cash out. Instead, they should keep their homes and protect their nest eggs.

As such, his ministry "will target assistance where it is needed and create the right enabling conditions for as many Singaporeans as possible, including those in the lower income group living in rental flats, to be homeowners, with a stake in this country and its future".

Although such efforts may not be easy for the families, he assured that the ministry, along with community partners, are ready to help them get back on their feet again.

With better outreach and community engagement, we hope homeowners will make informed choices and not be easily taken in by the promise of short-term gains without realising the serious long-term implications, he added.

The rental flat stock in Singapore has grown from 42,000 in 2007 to around 51,000 at present. By 2017, the number is expected to stand at 60,000. Rental rates still start at $26 per month for a one-room flat a price that was set 35 years ago in 1979, noted Dr Maliki.

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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