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     FrontPage Edition: Tue 16 August 2005

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Private sector to build and sell HDB flats


Mr Speaker, Sir, I beg to move, ¡°That the Bill be now read a second time.¡±
Sir, the key objective of the Housing & Development (Amendment) Bill is to put in place the legislative framework for the new Design, Build and Sell Scheme.
Under this scheme, the private sector will step into HDB¡¯s shoes to build and sell HDB flats. The Bill will introduce a new Part IVB under the Housing and Development Act to give effect to this.
The Bill also seeks to introduce other amendments to the H&D Act. These include allowing special upgrading works, e.g. lift upgrading, to be offered in relation to two or more buildings to link them together, expanding the composition of the HDB Board, and widening certain powers of the HDB to facilitate its operations.
Let me now explain the various key provisions.
Design, Build and Sell Scheme (DBSS)
Sir, I announced in Parliament earlier this year that MND and HDB will be piloting a new Design, Build and Sell Scheme, or DBSS, in the second half of the year.
Under this scheme, the private sector will undertake the development of public housing. Upon building completion, the development will be vested in HDB.
HDB will remain the lessor for the flats and administer their leases, while the Town Councils will manage and maintain the common areas.
Under the DBSS, developers will bid for the land through open tender and the successful tenderer will have the flexibility to decide on the design of the flats, the flat mix and their pricing. This allows greater scope for market forces to work.
So far, our public housing has been developed entirely by HDB. Most of them are designed by HDB¡¯s in-house architects. Hence, the DBSS represents a major shift in the way our public housing programme is implemented.
This new scheme will enable the private sector to play a bigger role in the public housing market. Our public housing programme will be more responsive to the needs and aspirations of Singaporeans.
Market competition will also benefit HDB flat buyers by injecting fresh ideas into the design of public housing, giving them a wider choice of flats and better value for money.

Source: Media Release 15 Aug 2005

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