We understand the concerns of some families on the quantum of the Parenthood Provisional Housing Scheme (PPHS) (Open Market) Voucher (Families awaiting BTO flats say $300 rental voucher is inadequate, March 11).

Overall, open market rents have been stabilising. The quarterly increase in public housing rents moderated to 0.4 per cent in the fourth quarter of last year, down from 1.9 per cent in the third quarter of last year.

The PPHS provides a temporary housing option for families with lesser income at their disposal, and who need to rent while waiting for their BTO flats to be completed.

To meet demand for PPHS flats, HDB has substantially increased its supply from 800 in 2021 to about 2,000 units currently. As a result, PPHS application rates have fallen significantly, from over 20 times in 2021 to 2.3 times in February 2024.

We are on track to further double the current supply to 4,000 units by 2025. With a bigger supply, we can expect application rates to improve further.

In the meantime, while waiting for our PPHS supply to increase, we have introduced the PPHS Voucher as a one-year temporary measure to support eligible families who need to rent HDB flats or bedrooms in the open market.

Each eligible family will receive $300 per month, or up to $3,600 for a year to defray the cost of renting in the open market.

This quantum was carefully calibrated to provide some relief for eligible families, while minimising the risk of inducing demand and pushing up prices in the rental market, which would impact other families who need to rent.

For young couples with no children renting an HDB bedroom, $300 can help to defray a sizeable portion of their rent, given that the median rent for an HDB bedroom is $800.

For married couples with children who need more space, they can apply to rent a PPHS flat from HDB. In recent exercises, all married applicants with children, including those expecting a child, had a chance to select a PPHS flat.

HDB will also launch about 2,800 Shorter Waiting Time BTO flats this year, with waiting time of less than three years.

This will allow more young couples to move into their new homes more quickly. Over time, such flats will form a larger proportion of our supply of new flats.

Charlene Han
Director (Homeownership), Housing Division
Ministry of National Development