THE pace of lift upgrading in HDB blocks will be increased by as much as 12 per cent this year - a move that will give struggling local builders a timely leg up.

The Senior Minister of State for National Development, Ms Grace Fu, said yesterday that the HDB is 'going to hasten the pace of the Lift Upgrading Programme (LUP) because we think this is a very good time'.

LAUNCH prices of new HDB flats could be cheaper if market prices start to fall. Senior Minister of State for National Development Grace Fu said yesterday that the Housing Board is monitoring the market closely and will adjust new-flat prices accordingly. ... more

'The construction prices are moderating, and I think it's good for us to take advantage. At the same time, we also see this as a way of injecting new work into the market,' added Ms Fu, who was speaking on a visit to Block 906, Tampines Avenue 4, a pilot project for one of the lift upgrading schemes for HDB blocks.

Ms Fu said in Parliament recently that some government infrastructure projects, each with a value of up to $50 million and including lift upgrades, would be brought forward to help the building industry.

The HDB chose 60 precincts for lift upgrading last year - 10 more than was initially planned.

For this year, Ms Fu said yesterday: 'We will look at bringing forward more, but a lot depends on the prices that we get as well.'

The HDB has spent $2.4 billion over the past five years on various upgrading programmes with a further $4.6 billion earmarked to be spent over the next five years.

The entire lift upgrading programme, which is slated for completion by 2014, will cost $5.5 billion.

Carrying out lift upgrades is part of a broader exercise to help struggling small- and medium-sized contractors get through the worsening recession by offering them a range of projects, each valued at $50 million or less.

About $1.3 billion worth of such work, from upgrading lifts and parks to schools, will be tendered out this year.

Read the full story in today's edition of The Straits Times.