Combined 2-room, Studio Apartment HDB scheme coming soon: Khaw

National Development Minister Khaw Boon Wan has shared some changes to the new combined two-room flexi scheme, calling it fair and affordable for existing and new homeowners.

He wrote on a blog post on Saturday that "extensive public consultations" are underway to help combine the current Studio Apartment and Two-Room flat schemes into one, while still retaining the objectives from both.

Mr Khaw shared that first-timer and second-timer families, as well as first-timer singles can continue to buy a new 99-year two-room flat from the Housing Development Board (HDB).

The Ministry will also be giving elderly households aged 55 and above the additional benefit of choosing a lease shorter than 99 years, if they wish. This option will be based on their age and preferences, he added.

This lease options will range from 15 to 45 years, in five-year increments, provided the chosen lease will be able to allow them and their spouse to live in the flat till they are aged 95 or above.

The prices for the new two-room Flexi flats will account lease tenure and if buyers are first-timer or second-timer.

Second-timer buyers will pay more than first-timers as the latter will get more subsidies, said Mr Khaw.

Through a combination of pro-rated grants for first-timers and pro-rated resale levy for second-timers, the Ministry will be able to price the flats that will be affordable for different types of homeowners.

He wrote that the recent buyers of the current Studio Apartment and Two-Room flats will find the new scheme to be fair.

New buyers of Two-Room Flexi flats will also find the flats affordable, he added.

Liken the new combined scheme to mixing coffee and tea, Mr Khaw said the team has worked hard over the past few months to get the balance right, and will be presenting it to the public "very soon".

wjeanne@sph.com.sg